The income tax treaty between Botswana and Ireland entered into force on 3 February 2016. The treaty, signed 10 June 2014, is the first of its kind between the two countries.
The treaty covers Botswana income tax and capital gains tax. It covers Irish income tax, universal social charge, corporation tax and capital gains tax.
The treaty includes the provision that a permanent establishment will be deemed constituted if an enterprise furnishes services within a Contracting State through employees or other engaged personnel for the same or connected project for a period or periods aggregating more than 6 months within any 12-month period.
The treaty also includes the provision that a permanent establishment will be deemed constituted if an enterprise carries on offshore activities in connection with the exploration or exploitation of the seabed and subsoil and their natural resources situated in a Contracting State for a period or periods aggregating more than 30 days within any 12-month period.
Article 20 (Technical Fees) includes the provision that if Botswana enters into tax treaty with any country other than Ireland after the signing of the Botswana-Ireland treaty and such treaty provides for a lower rate of tax on technical fees, then such rate will apply under the Botswana-Ireland tax treaty.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries generally apply the credit method for the elimination of double taxation.
The treaty applies in Botswana from 4 March 2016 in respect of withholding taxes, and from 1 July 2017 in respect of other taxes. It applies in Ireland from 1 January 2017.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.