The process for approval of projects for the IFSC tax incentives is set out in the Income tax (Amendment) Act 1999 which provides for the establishment of a Certification Committee to consider applications and to recommend the issue of approvals to those proposals which meet the criteria. Upon approval a tax certificate will be issued by the Minister of Finance and Development Planning or his authorised representative and will be effective, unless it is revoked, until June 2020.
Applications should be made to the Botswana IFSC. Proposals should contain the following information:
1. Name of the Project
Include the project name or the provisional name if the company has not yet been registered in Botswana.
2. Principals (sponsors)
Background information on the project sponsors. Details of the applicant’s business activities, length of time it has been established, financial standing, performance record, history and ownership should be provided. Most recent audited accounts should be included.
3. The IFSC Project
State objectives of the project. Set out precisely the proposed activities for which a tax certificate is sought. Describe the business plan.
This should provide an employment forecast for the project over a three-year period. Include an estimate of the breakdown between citizens and expatriates, together with an indication of the skills range required. It would be helpful if this information could be provided in a table.
Information on proposed markets should be provided and should include market size estimates and a summary of marketing plans.
6. Financial Projections
Financial projects should be provided for three years. Projections should include Balance Sheets, Profit and Loss and Cash flow statements.
7. Benefits to Botswana
The proposal should indicate how the project would contribute to the development of the Botswana IFSC, in addition to the employment level in heading 4. This should cover areas such as demand for services or other economic benefits associated with the project.
The Botswana IFSC will assist in preparing the applications if required. Click here for contact details.