Clarke & Merchant

tax & beyond.

Chartered Accountants delivering financial reports, tax, corporate secretarial, forensic/internal audit and advisory solutions across Botswana.

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About Us

Nearly two decades of reliable precision and strategic financial leadership.

Founded in 2007, Clarke & Merchant is a premier firm of Chartered Accountants operating in Botswana. Incorporated under the Companies Act of Botswana and registered as a Member Firm with the Botswana Institute of Chartered Accountants, we have built an unyielding reputation over the last 19 years for delivering highly personalized, cost-effective financial and advisory solutions.

True to our philosophy of "Smart planning, wise thinking," we understand the complex regulatory and financial challenges businesses face today. By combining an analytical, efficient approach with nearly two decades of strategic experience, we equip our clients with the deep insights needed to drive sustainable growth and maximize enterprise value.

🔒 Botswana Institute of Chartered Accountants Registered Member Firm — Membership No. MefBW13002

Our Mission

To empower our valued clients to thrive and prosper within a continuously evolving global business environment.

Our Vision

  • To be recognized as the premier provider of accounting and advisory services in the region.
  • To lead the industry by practicing and upholding the highest professional and ethical standards.
  • To foster a rewarding work environment that provides fulfilling career opportunities for our team.

Guiding Principles

  • Client Growth: Actively improving operational synergy.
  • Quality & Results: Uncompromising focus on outcomes.
  • Adaptability: Turning market change into innovation.
  • Integrity: Absolute honesty and transparency.

Our Professional Services

Tailored corporate strategies aligned completely with BICA and BURS regulatory frameworks.

Financial Reporting

Meticulous preparation of Annual and Interim Financial Statements for all business structures and legal entities.

Taxation Services

Comprehensive Botswana Unified Revenue Service (BURS) management, including registrations, returns, objections, and strategic structural consultations.

Corporate Secretarial

Full statutory compliance and corporate ledger management with the Companies and Intellectual Property Authority (CIPA).

Accounting & Payroll

Dedicated bookkeeping structures, monthly management accounting reporting, and secure, organized payroll administration.

Risk & Investigation

Rigid internal audit execution services and discrete forensic investigations to safeguard business infrastructure.

Advisory & Assurance

High-level corporate consulting, transaction due diligence, internal control reviews, and business start-up path guidance.

Doing Business in Botswana

Economy, Tax, Labour, and Corporate Compliance Guide

Welcome to our comprehensive guide on Botswana. Whether you are looking to understand the macroeconomic climate, structure a corporate entity, or navigate compliance under local tax, labour, and corporate law, this guide provides the essential framework.

1. Economy, People & Governance

  • Political Stability & Governance: A beacon of stability in Africa, operating as a multi-party parliamentary democracy since 1966 with strong transparency, rule of law, and traditional governance through the Ntlo ya Dikgosi (House of Chiefs).
  • The Economy: Driven by diamond mining (Debswana) alongside active economic diversification in eco-tourism (Okavango Delta), financial services, agriculture, and digital infrastructure. Currency: Botswana Pula (BWP).
  • People & Culture: Population of ~2.6 million. English is the official business language; Setswana is widely spoken. Anchored by the cultural philosophy of Botho (mutual respect and human dignity).

2. Tax Rates & Taxable Income (BURS)

  • Corporate Tax: Standard rate of 24.5% for resident and non-resident entities. A 10% withholding tax applies to repatriated branch or corporate profits sent to non-residents.
  • Individual Income Tax (PIT): Progressive sliding scale with a top marginal rate of 27.5% for annual taxable income exceeding BWP 400,000 (~BWP 33,333/month).
  • Value Added Tax (VAT): Standard rate of 14%. Registration is mandatory for standard businesses exceeding BWP 1 million in taxable supplies over 12 months.

3. VAT Rules & Remote Digital Services

  • Supply Classifications:
    • Standard-Rated (14%): Commercial goods, services, and remote digital services.
    • Zero-Rated (0%): Exports, international transport, basic foodstuffs, agricultural inputs, and specified welfare essentials.
    • Exempt: Residential accommodation, core financial, and standard educational services.
  • Remote & Digital Services: B2C digital services (streaming, cloud, apps, software) supplied by non-residents require VAT registration if taxable remote supplies exceed BWP 500,000 over 12 months. B2B supplies utilize a Reverse Charge Mechanism.

4. Capital Transfer Tax (CTT)

Applies to gratuitous disposals of property (gifts) and inheritances. The donee, beneficiary, or heir is legally liable.

  • Individual Rates:
    • First BWP 100,000: 2%
    • Next BWP 200,000: 3%
    • Next BWP 200,000: 4%
    • Balance above BWP 500,000: 5%
  • Corporate Rate: Flat 12.5%.
  • Key Exemptions: Casual gifts up to BWP 25,000/year; first BWP 100,000 of a deceased estate; spousal inheritances; and educational/maintenance gifts for children up to age 21.

5. Corporate Compliance (CIPA)

Governed under the Companies Act via the Companies and Intellectual Property Authority (CIPA).

  • Directors: Minimum of one director required for private companies. At least one director must ordinarily reside in Botswana. Directors must be natural persons, age 18+, with no disqualifying insolvency or fraud records.
  • Shareholders: 100% single-person ownership allowed. No residency or nationality mandates for shareholders; 100% foreign ownership is fully permitted. Liability is limited to unpaid amounts on shares.

6. Employment & Labour Relations

New statutory updates impacting contracts, employee benefits, anti-discrimination laws, and dispute resolution framework in Botswana.

  • Fixed-Term & Probation: Contracts capped at 12 months without objective justification; probation capped at max 6 months with mandatory structured performance feedback.
  • Expanded Leaves: Extended maternity leave (14 weeks at 70% pay), new paternity leave, 10-week adoption leave, and 20 days dedicated hospitalization leave.
  • Protections: Explicit anti-harassment laws, broadened non-discrimination rules, and streamlined dispute resolution.

Employment and Labour Relations (As Amended)

Effective 1st September 2026

Employers and foreign investors in Botswana must adjust payroll, HR policy documentation, and employment contracts to align with these comprehensive labour relations amendments:

Contracts and Probation

  • Fixed-term Contracts: Capped at a maximum of 12 months unless supported by clear, objective justification. Unjustified renewals can trigger automatic conversion into permanent, indefinite status.
  • Probation Periods: Strictly limited to a maximum duration of six months.
  • Probation Termination: Requires documented feedback, training support, and fair performance reviews rather than arbitrary separation.
  • Employment Presumption: Establishes a legal presumption of employment based on control and dependency, protecting gig/non-traditional workers and independent contractors.

Leave and Family Benefits

  • Maternity Leave: Extended from 12 to 14 weeks, with basic pay benefits increased to 70%.
  • Paternity Leave: Newly introduced statutory entitlement for male employees.
  • Adoption Leave: Standardized at 10 weeks for adopting children under two years of age.
  • Hospitalisation Leave: Provides a separate allocation of 20 days distinct from regular sick leave.

Protections & Dispute Resolution

  • Anti-Discrimination & Harassment: Explicitly prohibits sexual harassment and widens protections to cover health status, disability, sexual orientation, and political opinion.
  • Dispute Resolution: Consolidates fragmented channels into a structured framework to guarantee faster mediation and statutory enforcement.
  • Retrenchments: Mandates formal consultations and structured, negotiated redundancy packages.
Disclaimer & Notice on Regulatory Amendments The information provided in this guide is for general informational purposes only and does not constitute formal legal, financial, or tax advice. Tax laws, employment acts, corporate regulations (CIPA guidelines), and government thresholds are subject to periodic legislative amendments, policy updates, and revisions by regulatory authorities such as BURS, CIPA, and the Ministry of Labour. Users and businesses should independently verify current rules or consult Clarke & Merchant, a qualified professional, or a legal practitioner in Botswana before making financial, structural, or HR decisions.

Delivering Quality and Value

How we measure our standards and professional delivery metrics.

How We Measure Quality

We define quality by our ability to advance our clients' missions, exceed their expectations, and deliver sustainable results. We strive to continually earn our reputation as the best in our field by ensuring our staff embodies our core vision and principles every day.

How We Measure Value

We believe true value is reflected in the enduring satisfaction, trust, and loyalty of our long-term clients. We work intensely to protect that trust continuously through every consultation.

Partner With Us

Connect with a Chartered Accountant to elevate your business's financial health.

Get In Touch

Physical Address:
Unit H, Plot 129, Kgale Court,
Finance Park, Gaborone, Botswana.

Email: cma@btcmail.co.bw

Phone: +267 318 1488


Our team will review your inquiry and respond within one business day.

Important Compliance Notice: As a registered Tax Consultancy and Company Secretarial firm, we operate as a Specified Party under the Financial Intelligence Act of Botswana. Consequently, we are statutorily mandated to conduct strict Customer Due Diligence (CDD) before onboarding or executing transactions for any client. To comply with these national AML/CFT regulations, we kindly require all clients to provide verified credentials, including valid identification, proof of physical address, up-to-date CIPA corporate documents, and verification of your source of funds/income. These standard, sector-wide procedures are a mandatory legal protocol designed to protect the integrity of your business and Botswana’s financial ecosystem, and we deeply appreciate your prompt cooperation.