Botswana Approves New Transfer Pricing and Interest Deduction Restriction Rules and Amendments to IFSC Regime

On 12 December 2018, Botswana's parliament approved legislation that provides for the introduction of new transfer pricing rules, a restriction on the deduction of interest expense, and amendments to the International Financial Services Centre (IFSC) regime to comply with BEPS Action 5 (Harmful Tax Practices).

Transfer Pricing

With respect to transfer pricing, the legislation provides more general rules, with detailed requirements to be issued through regulations. Key points include:

• Tr…