The Minister of Finance and Economic Development recognized the difficulties associated with the covid-19 pandemic and extended the tax amnesty granted to businesses.
On 29 December 2021, Botswana published the Income Tax (Remission of Penalties and Interest) Amnesty (Amendment) Regulations 2021 and the Value Added Tax (Remission of Penalties and Interest) Amnesty (Amendment) Regulations 2021.
These regulations extend the period for tax amnesty for both income tax and vat until 30 June 2022.
Under this tax amnesty, taxpayers in arrears will benefit from a waiver of penalties and interest when they settle the principal amount of debt owed.
Taxes covered by the amnesty include:
• Corporate Income Tax
• Personal Income Tax
• Withholding taxes
• Value Added Tax
Penalties and interest accrued when a person fails to lodge a correct tax return or fails to disclose gross income accrued is not eligible for remission.
The tax period covered by the tax amnesty are as follows:
Income tax – All tax years prior to the amnesty period including the 2020/2021 tax year.
VAT – All tax periods prior to 1st July 2021 as follows:
- Category A: Tax periods prior to and including April/May 2021 tax period
- Category B: Tax periods prior to and including May/June 2021 tax period
- Category C: Tax periods prior to and including June 2021 tax period