June and

December
2018

Taxation –
Botswana
(TX-BWA) (F6)
Syllabus and study guide
 Taxation - Botswana (TX-BWA) (F6)

Guide to structure of the Detailed syllabus

syllabus and study guide This shows the breakdown of the main
capabilities (sections) of the syllabus
into subject areas. This is the blueprint
Overall aim of the syllabus
for the detailed study guide.
This explains briefly the overall objective Approach to examining the syllabus
of the syllabus and indicates in the
broadest sense the capabilities to be This section briefly explains the
developed within the exam. structure of the examination and how it
is assessed.
Relational diagram linking Taxation –
Botswana (TX-BWA) (F6) with other Study Guide
ACCA exams
This is the main document that students,
This diagram shows direct and indirect education and content providers should
links between this exam and other use as the basis of their studies,
exams preceding or following it. It instruction and materials. Examinations
indicates where you are expected to will be based on the detail of the study
have underpinning knowledge and guide which comprehensively identifies
where it would be useful to review what could be assessed in any
previous learning before undertaking examination session. The study guide is
study. a precise reflection and breakdown of
the syllabus. It is divided into sections
Main capabilities
based on the main capabilities identified
in the syllabus. These sections are
The aim of the syllabus is broken down divided into subject areas which relate to
into several main capabilities which the sub-capabilities included in the
divide the syllabus and study guide into detailed syllabus. Subject areas are
discrete sections. broken down into sub-headings which
describe the detailed outcomes that
Relational diagram of the main
could be assessed in examinations.
capabilities
These outcomes are described using
verbs indicating what exams may
This diagram illustrates the flows and require students to demonstrate, and the
links between the main capabilities broad intellectual level at which these
(sections) of the syllabus and should be may need to be demonstrated
used as an aid to planning teaching and (*see intellectual levels below).
learning in a structured way.

Syllabus rationale

This is a narrative explaining how the

syllabus is structured and how the main
capabilities are linked. The rationale
also explains in further detail what the
examination intends to assess and why.

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Intellectual Levels Learning Hours and

Education Recognition
The syllabus is designed to
progressively broaden and deepen the The ACCA qualification does not
knowledge, skills and professional prescribe or recommend any particular
values demonstrated by the student on number of learning hours for
their way through the qualification. examinations because study and
learning patterns and styles vary greatly
The specific capabilities within the between people and organisations. This
detailed syllabuses and study guides are also recognises the wide diversity of
assessed at one of three intellectual or personal, professional and educational
cognitive levels: circumstances in which ACCA students
find themselves.
Level 1: Knowledge and
comprehension As a member of the International
Level 2: Application and analysis Federation of Accountants, ACCA seeks
Level 3: Synthesis and evaluation to enhance the education recognition of
its qualification on both national and
Very broadly, these intellectual levels international education frameworks, and
relate to the three cognitive levels at with educational authorities and partners
which the Applied Knowledge,
globally. In doing so, ACCA aims to
the Applied Skills and the Strategic
ensure that its qualifications are
Professional exams
recognised and valued by governments,
are assessed.
regulatory authorities and employers
across all sectors. To this end, ACCA
Each subject area in the detailed study
guide included in this document is given qualifications are currently recognised
a 1, 2, or 3 superscript, denoting on the education frameworks in several
intellectual level, marked at the end of countries. Please refer to your national
each relevant line. This gives an education framework regulator for
indication of the intellectual depth at further information.
which an area could be assessed within
the examination. However, while level 1 Each syllabus contains between 23 and
broadly equates with Applied 35 main subject area headings
Knowledge, level 2 equates to Applied depending on the nature of the subject
Skills and level 3 to Strategic and how these areas have been broken
Professional, some lower level skills can down.
continue to be assessed as the student
progresses through each level. This
reflects that at each stage of study there
will be a requirement to broaden, as well
as deepen capabilities. It is also
possible that occasionally some higher
level capabilities may be assessed at
lower levels.

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Guide to ACCA ACCA’s regulatory approved quality

assurance process.
Examination Structure
The total exam time is therefore 3 hours
The structure of examinations varies
within and between levels. and 20 minutes. Prior to the start of the
exam candidates are given an extra 10
The Applied Knowledge examinations minutes to read the exam instructions.
contain 100% compulsory questions to
encourage candidates to study across Paper-based exams
the breadth of each syllabus.
For paper-based exams 15 minutes are
The Applied Knowledge exams are added to the three hours to reflect the
assessed by equivalent two-hour manual effort required as compared to
computer based and paper based computer-based exams. All paper-
examinations. based and computer-based questions
have been subject to the same quality
The Corporate and Business Law exam assurance process. There will be time
is a two- hour computer based objective awarded by the invigilator to read the
test examination also available as a exam instructions.
paper based version.
Strategic Business Leader is ACCA’s
The other Applied Skills examinations case study examination at the Strategic
contain a mix of objective and longer Professional level and is examined as a
type questions with a duration of three closed book exam of four hours,
hours for 100 marks; these questions including reading, planning and
directly contribute towards the candidate reflection time which can be used
result. These exams are available in flexibly within the examination. There is
computer-based and paper-based no pre-seen information and all exam
formats. Prior to the start of each exam related material, including case
there will be time allocated for students information and exhibits are available
to be informed of the exam instructions. within the examination. Strategic
Business leader is an exam based on
Computer-based exams one main business scenario which
involves candidates completing several
For the Applied Skills computer-based tasks within which additional material
exams candidates will be delivered an may be introduced. All questions are
extra 10 marks of objective test content compulsory and each examination will
(either five single OT questions or five contain a total of 80 technical marks and
OT questions based around a single 20 Professional Skills marks. The detail
scenario), for which candidates are of the structure of this exam is described
given an extra 20 minutes. These in the Strategic Business Leader
questions are included to ensure syllabus and study guide document.
fairness, reliability and security of
exams. These questions do not directly The other Strategic Professional exams
contribute towards the candidate’s are all of three hours and 15 minutes
score. Candidates will not be able to duration. All (excluding Advanced
differentiate between the questions that Taxation variant exams*) contain two
contribute to the result and those that do Sections and all questions are
not. All questions have been subject to compulsory. These exams all contain

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

four professional marks. The detail of

the structure of each of these exams is
described in the individual syllabus and
study guide documents.

ACCA encourages students to take time

to read questions carefully and to plan
answers but once the exam time has
started, there are no additional
restrictions as to when candidates may
start writing in their answer books.

Time should be taken to ensure that all

the information and exam requirements
are properly read and understood.

The pass mark for all ACCA

Qualification examinations is 50%.

*Advanced Taxation UK will contain fully

compulsory questions from June 2018.
Advanced Taxation MYS will move to
fully compulsory questions in December
2018, and all other Advanced Taxation
variants will move to fully compulsory
questions in June 2019.

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Guide to ACCA legislation passed before the previous

30 September. I.e. June and December
Examination Assessment 2018 papers will be based on legislation
passed by 30 September 2017.
This syllabus and study guide is valid for
exams from June to December 2018.
Regulations issued or legislation passed
From September 2018, a new naming
in accordance with the above dates may
convention is being introduced for all of
be examinable even if the effective date
the exams in the ACCA Qualification, so
is in the future.
from the December 2018 session, the
name of the exam will be Taxation – The term issued or passed relates to
Botswana (TX-BWA). June 2018 is the when regulation or legislation has been
first session of a new exam year for tax, formally approved.
when the exam name continues to be
F6 Taxation (BWA). Since this name The term effective relates to when
change takes place during the validity of regulation or legislation must be applied
this syllabus, both the old and new to an entity transactions and business
names have been used. For clarity, both practices.
names have been used for any exams
referred to in this syllabus. The study guide offers more detailed
guidance on the depth and level at
ACCA reserves the right to examine which the examinable documents will be
anything contained within the study examined. The study guide should
guide at any examination session. This therefore be read in conjunction with the
includes knowledge, techniques, examinable documents list.
principles, theories, and concepts as
specified. For the financial accounting,
audit and assurance, law and tax exams
except where indicated otherwise,
ACCA will publish examinable
documents once a year to indicate
exactly what regulations and legislation
could potentially be assessed within
identified examination sessions.

For most examinations (not tax),

regulations issued or legislation passed
on or before 31 August annually, will be
examinable from 1 September of the
following year to 31 August of the year
after that. Please refer to the
examinable documents for the exam
(where relevant) for further information.

For the BWA variant, tax examinations

in June and December will be based on

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Taxation – Botswana (TX-BWA) (F6) syllabus and

study guide

This syllabus and study guide is designed to help with planning study and to provide
detailed information on what could be assessed in any examination session.

Aim

To develop knowledge and skills relating

to the tax system as applicable to Syllabus
individuals and companies.

Taxation – Botswana
(TX-BWA) (F6)

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Main capabilities
On successful completion of this exam, candidates should be able to:

A Explain the operation and scope of the Botswana tax system and the
obligations of tax payers and/or their agents and the implications of non-
compliance.

B. Explain and compute the income tax liabilities of individuals.

C. Explain and compute the tax liabilities of companies.

D. Explain and compute the chargeable gains arising on companies and

individuals

E. Explain the operation and scope of the system of withholding taxes.

F. Explain and compute the effects of value added tax on incorporated and
unincorporated businesses.

The Botswana tax system and its administration (A)

Income tax liabilities (B) Company tax liabilities (C) Chargeable gains (D)

Withholding Taxes (E) VAT (F)

This diagram illustrates the flows and links between the main capabilities (sections)
of the syllabus and should be used as an aid to planning teaching and learning in a
structured way.

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Rationale

This syllabus introduces candidates to

the subject of taxation and provides the
core knowledge of the underlying
principles and major technical areas of
taxation, as they affect the activities of
individuals and businesses.

In this syllabus, candidates are

introduced to the rationale behind and
the functions of the tax system. The
syllabus then considers the separate
taxes that an accountant would need to
have a detailed knowledge of, such as
income tax from self employment,
employment and investments; the
company tax liability of individual
companies ; the system of withholding
taxes; the value added tax liability of
businesses; and the chargeable gains
arising on disposals of investments by
both individuals and companies.

Having covered the core areas of the

basic taxes, the candidate should be
able to compute tax liabilities, explain
the basis of their calculations, apply tax
planning techniques for individuals and
companies and identify the compliance
issues for each major tax through a
variety of business and personal
scenarios and situations.

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Detailed syllabus 4. The use of exemptions and reliefs in

deferring and minimising company
A The Botswana tax system tax liabilities

1. The overall function and purpose of D Chargeable gains

taxation in a modern economy
1. The scope of the taxation of capital
2. Principal sources of tax law and gains
practice
2. The basic principles of computing
3. The system for self-assessment tax gains and losses
(SAT) and the making of returns.
3. Gains and losses on the disposal of
4. The time limits for the submission of immovable property
information, claims and payment of
tax, including payments on account. 4. Gains and losses on the disposal of
shares and debentures
5. The procedures relating to
objections, appeals and disputes. 5 The computation of the tax payable
on capital gains by individuals and
6. Penalties for non-compliance. companies

B. Income tax liabilities 6. The use of exemptions and reliefs in

deferring and minimising tax
1. The scope of income tax liabilities arising on the disposal of
capital assets
2. Income from employment
E Withholding taxes
3. Income from self-employment
1. The scope of withholding taxes
4. Property and investment income
2. Calculation of withholding tax
5. The comprehensive computation of
taxable income and income tax 3. Credit for withholding tax
liability

6. The use of exemptions and reliefs in F Value added tax

deferring and minimising income tax
liabilities 1. The scope of value added tax (VAT)

C Company tax liabilities 2. The VAT registration requirements

1. The scope of company tax 3. The computation of VAT liabilities

2. Profits chargeable to company tax

3. The comprehensive computation of

company tax liabilities

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Approach to examining the syllabus

The syllabus is assessed by a three-hour 15 minutes paper-based examination.

The paper will be predominantly computational and all questions are compulsory.

Section A of the exam comprises 15 multiple choice questions of 2 marks each.

Section B of the exam comprises four 10 mark questions and two 15 mark
questions.

The two 15 mark questions will focus on income tax (syllabus area B) and
company tax (syllabus area C).

The Section A questions and the other questions in section B can cover any
areas of the syllabus.

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Study Guide b) Calculate the SAT payable and the

timing thereof by companies.[2]

A The Botswana Tax system c) Explain the system of making tax

returns for individuals.[2]
and its administration
d) State the due dates for tax payable
1. The overall function and purpose by individuals.
of taxation in a modern economy
4. The time limits for the submission
a) Describe the purpose (economic, of information, claims and
social etc) of taxation in a modern payment of tax, including
economy.[1] payments on account
b) Identify the different types of capital a) Recognise the time limits that apply
and revenue tax.[1] to the filing of returns.[1]
c) Explain the difference between direct b) Recognise the due dates for the
and indirect taxation.[2] payment of tax under the self-
assessment system (SAT).[2]
2. Principal sources of tax law and
practice c) Compute payments on account and
balancing payments/repayments for
a) Describe the overall structure of the individuals.[2]
Botswana tax system.[1]
d) Explain how companies are required
b) State the different sources of revenue to account for company tax on a
law.[1] quarterly basis.[2]
c) Appreciate the impact of e) List the information and records that
Departmental Guidance Notes (DGN) taxpayers need to retain for tax
in the tax system.[2] purposes.[1]
d) Appreciate the interaction of the 5. The procedures relating to
Botswana tax system with that of objections, appeals and disputes
other tax jurisdictions.[2]
a) Explain the circumstances and time
e) Explain the difference between tax limits in which the Botswana Unified
avoidance and tax evasion.[1] Revenue Services (BURS) can
enquire into a self-assessment and
f) Explain the need for an ethical and other tax returns.[2]
professional approach.[2]
b) Explain the procedures for dealing
Excluded topics with objections, appeals and
disputes.[1]
Anti-avoidance legislation.
6. Penalties for non-compliance
3. The system for self-assessment
and the making of returns a) Calculate interest on overdue tax.[2]
a) Explain and apply the features of the b) State the penalties that can be
self-assessment tax (SAT) system as charged.[2]
it applies to companies.[2]

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

B Income tax liabilities 3. Income from self-employment

1. The scope of income tax a) Recognise the basis of assessment

for self-employment income including
a) Explain how the residence of an foreign income.[2]
individual is determined.[1]
b) Describe and apply the badges of
Excluded topics trade.[2]

• Double taxation relief c) Recognise the expenditure that is

allowable in calculating the tax-
• Income from trusts and adjusted trading profit.[2]
settlements.
d) Capital allowances
2. Income from employment i) Define plant and machinery for
capital allowances purposes.[1]
a) Recognise the factors that determine ii) Compute annual allowances.[2]
whether an engagement is treated as iii) Recognise the limitation of capital
employment or self-employment.[2] allowances on motor cars.[2]
iv) Compute balancing allowances
b) Recognise the basis of assessment and balancing charges.[2]
for employment income including v) Define an industrial building and a
foreign income.[2] commercial building for capital
allowance purposes.[1]
c) Compute the income assessable.[2] vi) Compute the initial and annual
allowances for industrial buildings
d) Recognise the allowable and the annual allowance for
deductions.[2] commercial buildings.[2]
vii) Compute the balancing
e) Recognise income that is exempt.[2] adjustment on the disposal of an
industrial or commercial building.[2]
f) Explain the PAYE system.[1] viii) Recognise the initial allowance
on industrial buildings.[2]
g) Identify the employment benefits that ix) Understand and apply roll-over
are assessable.[1] relief on the disposal and
acquisition of plant and
h) Compute the amount of benefits equipment.[2]
assessable.[2]
e) Farmers
Excluded topics. i) Apply the standard values to the
valuation of cattle stock.[2]
ii) Apply the farming capital
• Share and share option incentive
expenditure that can be claimed
schemes for employees.
as a deduction.[2]
iii) Compute farming chargeable
• Payments on the termination of
income.[2]
employment, and other lump
sums received by employees.
f) Relief for trading and farming losses
i) Understand how trading losses
• Approved service gratuities and
can be carried forward.[2]
severance pay.
ii) Recognise that trading losses are
ring-fenced and can only be
carried forward for five years.[2]

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

iii) Recognise that farming losses are c) Apply tax credits received to the
ring-fenced and can be carried income tax payable.[2]
forward indefinitely.[2]
Excluded topics
g) Partnerships
i) Explain how a partnership is • Maintenance payments.
assessed to tax.[2]
ii) Compute the assessable profits • The income of minor children.
for each partner.[1]
6. The use of exemptions and reliefs
Excluded topics in deferring and minimising
income tax liabilities
• Joint property of husbands and
wives. a) Explain and compute the relief given
for contributions to pension
• Partnership changes. schemes.[1]

• Farmers averaging of profits. Excluded topics

• Carryback of farming losses. • The conditions that must be met

in order for a pension scheme to
• Farming optional liability. obtain approval.

4. Property and investment income C Company tax liabilities

a) Compute rental income.[2] 1. The scope of company tax

b) Understand that capital allowances a) Define the terms ‘tax year’,

can be claimed against rental ‘accounting period’, and ‘financial
income.[1] year’.[1]

c) Understand the taxation of dividend b) Recognise when an accounting

income.[2] period starts and when an accounting
period finishes.[1]
d) Understand the taxation of interest
income.[1] c) Explain how the residence of a
company is determined.[2]
e) Understand that rental and interest
income are subject to withholding tax. Excluded topics

f) Explain the tax treatment of income • Investment companies.

from exempt investments.[1]
• Close companies.
5 The comprehensive computation
of taxable income and income tax • Companies in receivership or
liability liquidation.
a) Prepare a basic income tax • Reorganisations.
computation involving different types
of income.[2]
• Mining companies
b) Compute the amount of income tax
payable.[2]

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

2. Profits chargeable to company tax Excluded topics

a) Recognise the expenditure that is • Farming and mining companies.

allowable in calculating the tax-
adjusted trading profit.[2] • Foreign tax credits.

b) Explain the difference between the • Foreign dividends received.

general deduction formula and
specific deductions.[2] 4. The use of exemptions and reliefs
in deferring and minimising
c) Understand the treatment of pre- company tax liabilities (The use of
trading expenditure.[1] such exemptions and reliefs is
implicit within all of the above
d) Compute capital allowances (as for sections 1 to 3 of part C of the
income tax).[2] syllabus, concerning company tax)

e) Compute property business profits.[2] D Chargeable gains

[2]
f) Compute farming business income.
1. The scope of the taxation of
capital gains
g) Understand how relief for losses is
given.[2]
a) Describe the scope of capital gains
tax.[2]
h) Compute profits chargeable to
company tax.[2]
b) List those assets which are exempt.[1]
Excluded topics
Excluded topics
• Research and development
• Assets situated overseas and
expenditure.
double taxation relief.
• Leasehold expenditure.
• Partnership capital gains.
• Approved training expenditure. 2. The basic principles of computing
gains and losses.
3. The comprehensive computation
of company tax liability a) Compute capital gains for both
individuals and companies.[2]
a) Compute the company tax liability.[2]
b) Understand the aggregation of
b) Explain the implications of receiving capital gains and capital losses.[1]
interest income that has been
subjected to withholding tax.[2] c) Calculate the amount of allowable
expenditure for a part disposal.[2]
c) Apply credits to the company tax
liability including SAT payments and Excluded topics
withholding tax credits.
• Assets held at 30 June 1982.
d) Understand that certain expenses
that are liable to withholding tax can
• Capital sums received in respect
only be deducted from assessable
of the loss, destruction or damage
income in the year in which the
of an asset.
withholding tax is paid.

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

3. Gains and losses on the disposal order to list on the Botswana Stock
of immovable property Exchange.[2]

a) Compute the capital gain on the E Withholding taxes

disposal of immovable property.[2]
1. The scope of withholding taxes
b) Calculate the tax cost of the
immovable property including a) Demonstrate the withholding taxes
improvements.[2] that apply to payments to non-
residents.
c) Calculate the indexation allowance
available in respect of a disposal of b) Demonstrate the withholding taxes
immoveable property.[2] that apply to payments to residents.
d) Understand that expenses incurred in c) Recognise when withholding tax is
disposing of a property can be payable.
deducted.[1]
2. Calculation of withholding tax
e) Apply capital losses brought
forward.[2] a) Calculate the withholding tax payable
in respect of payments of interest to
Excluded topics residents and non-residents.

• The disposal of properties b) Calculate the withholding tax payable

acquired by gift or inheritance. in respect of royalties, entertainment,
management and consultancy fees
4. Gains and losses on the disposal paid to non-residents.
of shares and debentures
c) Calculate the withholding tax payable
a) Calculate the capital gain on the in respect of rentals, commissions
disposal of shares.[2] and brokerage paid to residents.

b) Calculate the allowance available in d) Calculate the withholding tax payable

respect of a disposal of shares or in respect of construction contracts
debentures.[1] and purchases of livestock.

c) Explain the treatment of bonus issues 3. Credit for withholding tax

and rights issues.[2]
a) Understand which withholding tax
d) Understand that the sale of goodwill payments are a final charge to tax
is treated the same as a disposal of and which can be credited against
shares.[1] tax payable.

5. The use of exemptions and reliefs b) Understand how the timing of

in deferring and minimising tax withholding tax payments affects the
liabilities arising on the disposal of claim for a deduction of certain
capital assets expenses.

a) Explain and apply rollover relief as it 4. Interaction of tax deductions and

applies to individuals and payment of withholding tax
companies.[2]
a) Understand that certain expenses
b) Explain and apply holdover relief for that are liable to withholding tax
restructures and reorganisations in cannot be claimed as a deduction
until the withholding tax is paid.

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

d) Explain and apply the principles

Excluded topics regarding the valuation of supplies.[2]

• Foreign withholding tax. e) Recognise the circumstances in

which input VAT is non-deductible.[2]
F Value added tax
f) Compute the relief that is available
1. The scope of value added tax for impairment losses on trade
(VAT) debts.[2]

a) Describe the scope of VAT.[2] g) Explain the circumstances in which

interest will be applied.[1]
b) List the principal zero-rated and
exempt supplies.[1] h) Explain and apply the apportionment
of input VAT between exempt and
2. The VAT registration requirements taxable supplies.[2]

a) Recognise the circumstances in Excluded topics

which a person must register for
VAT.[2] • Adjustments for change in use.

b) Explain the advantages of voluntary • Notional input tax

VAT registration.[2]
• Penalties for misdeclarations.
c) Explain how and when a person can
deregister for VAT.[1]

3. The computation of VAT liabilities

a) Explain how VAT is accounted for

and administered.[2]

b) Recognise the time of supply for

goods and services.[2]

c) List the information that must be

given on a tax invoice.[1]

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Reading list

Botswana Income Tax - Botswana Government

Silke on South African Tax

Notes on South African Income tax - Huxham & Haupt

VAT in Botswana: A Simplified Approach – Jonathan Hore

Withholding Tax in Botswana: A Simplified Approach – Jonathan Hore

© ACCA 2018 All rights reserved.

 Taxation - Botswana (TX-BWA) (F6)

Summary of changes to Taxation – Botswana (TX-

BWA) (F6)

ACCA periodically reviews its qualification syllabuses so that they fully meet the
needs of stakeholders such as employers, students, regulatory and advisory bodies
and learning providers.

There have been no changes to the syllabus for 2018.

© ACCA 2018 All rights reserved.