20 Feb 2013

Government established the Botswana Innovation Hub in order to attract investors in technology driven and knowledge intensive business.

Responding to a question from the MP for Gaborone West North, Mr Robert Masitara, the Assistant Minister of Finance and Development Planning, Mr Vincent Seretse said this included research and development.

Mr Seretse stated that in July 2009, a tax incentives regime was provided for Botswana Innovation Hub companies through the Botswana Innovation Hub Order under the Income Tax Act.

He said companies applied for approval through the Ministry of Infrastructure, Science and Technology and if they were recommended for approval, then these were taxed at a reduced tax rate of 15 per cent.

Assistant Minister Seretse said in addition to the 15 per cent tax rate, companies that invested in research and development were allowed to fully offset their development expenditure against taxable income during the year in which they were incurred.

MP Masitara had asked what steps were being taken to develop tax incentives to promote investment in research and development in high tech industries in Botswana. ENDS