Botswana Signs DTAs With Lesotho, Swaziland

by Lorys Charalambous, Tax-News.com, Cyprus

28 April 2010

Botswana has signed two agreements for the avoidance of double taxation (DTAs) with Lesotho and Swaziland, respectively.

The DTAs will divide taxing rights between Botswana and the other two countries, and look to ease the tax burden on investors who are resident in one country but trading in another. A particular objective was that small and medium-sized enterprises would benefit under the agreements.

“We should be promoting development cooperation within our region and this is a milestone achievement in that direction,” Kenneth Matambo, Botswana’s Minister of Finance and Development Planning, said. “One investor should not be taxed twice on the same income, and we, therefore, hope to see more of our people doing business across our countries.”

Lesotho’s Minister of Finance and Development Planning, Timothy Thahane, noted that the two countries have been cooperating at various levels, but had previously neglected the treatment of reciprocal trade investment.

Majozi Sithole, Swaziland’s Finance Minister, welcomed the DTA between his country and Botswana as an outstanding achievement that, he hoped, will create jobs and wealth in the two countries.

It was reported that Botswana has so far concluded 10 DTAs, and will soon sign others with two European countries and five countries from the Southern African Development Community.

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