CHAPTER 52:01 INCOME TAX

1 Copyright Government of BotswanaCHAPTER 52:01 INCOME TAXARRANGEMENT OF SECTIONS SECTIONPART IPreliminary 1. Short title 2. InterpretationPART IIAdministration 3. Appointment of officers 4. Delegation by Commissioner General 5. Secrecy 6. Forms of notices and returns 7. Service of notice or documentsPART IIII mposition of INCOME TaxDIVISION ICHARGE TO TAX 8. Charge to tax, general 9. Scope of charge to tax 10. Effective date of accrual 11. Amounts deemed to have accrued in BotswanaDIVISION IIPERSONS CHARGEABLE TO TAX 12.

2 Persons chargeable, general 13. Minor children 14. Settlements and wills 15. Revocable trusts 16. Deceased persons 17. Estates of deceased persons 18. Legally disabled persons 19. Trusts 20. Insolvent persons 21. Partnerships 22. Collective investment undertaking 23. Non-resident persons 24. Responsibility of representative taxpayersPART IVAscertainment of Gross IncomeDIVISION IACCOUNTING PERIODS AND RECORDSC opyright Government of Botswana 25. Substituted accounting periods 26.

3 Maintenance of proper record of transactions and methods of accountingDIVISION IIGROSS INCOME 27. Gross INCOME , general 28. Business, general 29. Business, farming 30. Farming, optional liability 31. Mines and minerals 32. Employment INCOME 33. Interest and certain royalties and fees 34. Rents, premiums and improvements to land or buildings 35. Other provisions relating to gross INCOME 36. Transactions designed to avoid liability to taxPART VAscertainment of Assessable INCOME 37. Assessable INCOME , general 38. Exemption from taxPART VIAscertainment of Chargeable INCOME 39.

4 Deductions allowable, general 40. INCOME from disposal of property of business 41. Deductions allowable, specific 42. Farming: average chargeable INCOME 43. Deductions allowable: mines and minerals 44. Special deduction for approved training expenditure 45. Deductions not allowable under more than one provision 46. Deductions for assessed losses 47. Special deduction for farming assessed losses 48. Set-off of farming losses 49. Capital expenditure by an employee 50. Deductions not allowablePART VIIA scertainment of Taxable INCOME 51.

5 Taxable INCOME , generalPART VIIIS pecial Provisions relating to Certain Taxpayers DIVISION IORDERS AND AGREEMENTS 52. Development approval orders and additional tax relief 53. International agreements for the avoidance of double taxation 54. Tax agreementsDIVISION IICopyright Government of BotswanaSPECIAL CLASSES OF COMPANIES AND BUSINESS 55. Taxation of special classes of companies and businessesDIVISION IIIWITHHOLDING AND DEDUCTED TAX 56. Deduction of tax by employers 57. Deduction of tax due under certain contracts 58. Deduction of tax from payments of dividends, interest and certain royalties andfeesPART IXAscertainment of Tax PayableDIVISION IRATES OF TAX 59.

6 Rates of tax, general 60. Set-off against additional company taxDIVISION IICREDIT FOR TAX PAID 61. Credit for tax deducted at source 62. Credit for tax paid under section 114 63. Credit for tax paid outside Botswana 64. Calculation of tax creditPART XReturns and Notices 65. Tax returns, general 66. Provisional tax return 67. Tax returns: cessation of INCOME during a tax year 68. Tax returns: where no return is furnished 69. Further returns or information, production of books and giving of evidence toCommissioner General 70. Powers of entry, inspection and removal of documents 71.

7 Submission of accounts with tax return and certificate relating to preparation ofaccounts 72. Annual returns by companies of interest and dividends paid 73. Annual return by private companies of shareholders 74. Companies: documents of incorporation, amendments thereof and prospectus 75. Returns deemed to be furnished by due authority and in full knowledge of contents 76. Returns: method of furnishing 77. Extension of timePART XIAssessment of Tax 78. Commissioner General to make assessment 79. Additional assessments 80. Reduced assessments 81. Reduced assessments in respect of persons other than companies orpartnershipsCopyright Government of Botswana 82.

8 Determination of assessed loss 83. Provisional assessments 84. Time limits for assessments 85. Notice of assessment 86. Record of assessments 87. Finality of assessmentPART XIIO bjections and Appeals 88. Objection to assessment 89. Decision by Commissioner General 90. Board of Adjudicators 91. Appeal from decision of Commissioner General 92. Hearing by the Board of Adjudicators or High Court 93. Right of further appeal 94. Payment of tax not suspended by notice of objection or appealPART XIIIP ayment, Recovery and Refund of Tax 95.

9 When tax is payable 96. Extensions of time or payment by instalments 97. Interest on unpaid tax 98. When tax deducted by employer is payable 99. When tax deducted under section 57 is payable 100. When tax deducted under section 58 is payable 101. Interest on unpaid tax deductions 102. Recovery of tax, general 103. Procedure for recovery of tax by court action 104. Recovery of moneys from person leaving Botswana 105. When tax recoverable from assets of other spouse 106. Recovery of tax from representative taxpayers 107. Right of representative taxpayer to indemnity 108.

10 Personal liability of representative taxpayer 109. Recovery of tax from person holding money for another person 110. Priority of tax debt upon insolvency or liquidation 111. Refund of tax overpaid 112. Remission of tax 113-115..PART XIVO ffencesDIVISION ICIVIL PENALTIES 116. Penalties: general 117. Penalties: failure to furnish tax return 118. Penalties: failure to furnish correct tax return or estimate of taxable INCOME 119. Penalties: failure to appoint a public officer, precedent partner, agent or addressfor service of noticesDIVISION IICRIMINAL PROCEEDINGSC opyright Government of Botswana 120. Sanction for prosecution 121.