Botswana
Executive Summary
Botswana Is A Sub-Saharan Success . .
.
Botswana,
independent since 1966, has had high growth
rates due to sound economic management and
its diamond mining industry. With an area
of 600,000 sq km and a population of 1.84m,
Botswana is bordered by Namibia, South Africa
and Zimbabwe. The capital Gaborone has air
links to major African cities. With a stable
democracy, GDP per head of USD16,400 in
2007, and reserves of more than USD6bn,
Botswana is rated the least corrupt country
in Africa by Transparency International.
.
. . and Is Creating An IFSC To Diversify
The Economy
The
Income Tax Amendment Act 1999 created an
International Financial Services Centre,
whose focus is on the provision of financial
services to clients who are domiciled in
other countries. Fiscal incentives are provided
to financial and non-financial institutions
to encourage them to establish in the IFSC
to provide these services. The Bank of Botswana
is responsible for supervision of IFSC companies.
The IFSC Includes Investment Funds .
. .
Undertakings
for Collective Investment were brought under
the IFSC regime by the Collective Investment
Undertakings Act 1999. CIUs can be organised
in the form of trusts or investment companies,
including variable capital companies and
unit trusts. Open and close ended funds
are permitted. CIUs are also supervised
by the Bank of Botswana.
.
. . and Offers a Privileged Tax Regime To
Its Members
Botswana
has lowish tax rates applied on a territorial
basis, but the IFSC allows generous deductions
from income before taxation and exemption
from withholding taxes on dividends. Capital
gains are tax free in the IFSC. Companies
in the IFSC are likely to escape anti-avoidance
and CFC legislation in many OECD countries.
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