The France-Botswana tax treaty: dividends at 12% of 13% of GDP, interest and royalties at 10% of 13% of GDP.

The France-Botswana convention caps dividends at 5 or 12 13 T, interest at 10 13 T, and royalties at 10 13 T. Its 183-day rule is calculated over twelve months, not the calendar year. This document presents the articles we have read and explains what it does not cover.

A text from 1999, updated in 2017 on intelligence

The convention was signed in Gaborone on April 15, 1999 and entered into force on June 1, 2003. For withholding taxes, it applies to sums paid from January 1, 2004.

The amendment of July 27, 2017, updates the information exchange clause. It entered into force on January 1, 2021, and applies to income from January 1, 2018, for France and from July 1, 2018, for Botswana. Botswana is not included in the administrative list of agreements amended by the MLI (BOI-ANNX-000511).

Withholding tax ceilings

These ceilings assume that the beneficial owner resides in the other state. The BOFiP specifies that equipment rental is only included in the royalties if it is accompanied by a transfer of know-how.

183 days: the window is twelve months

For employees, Article 15 reserves taxation for the state of residence if the stay in the other state does not exceed a total of 183 days in any twelve-month period. The employer must not be a resident of the other state, and the remuneration must not be paid through a permanent establishment or fixed base.

Typical case (fictional profile): a mission spanning two years

A hypothetical employee stays in Botswana from October 15, 2026, to May 15, 2027. They spend 78 days there in 2026 and 135 days in 2027: no calendar year exceeds 183 days. Over twelve consecutive months, the total is 213 days, 30 days more than the threshold. The BOFiP (French Official Tax Bulletin) uses the same type of example, from October 15 of year N to May 15 of year N+1. This calculation provides an order of magnitude, not a definitive conclusion: the other two conditions still need to be examined.

Pensions: the case of social security

Article 18 reserves private pensions paid for previous employment to the state of residence. Social security benefits are taxable in the state that pays them. The BOFiP (Official Bulletin of Public Finances) indicates that they are then subject to the withholding tax stipulated in Article 182 A of the French General Tax Code (CGI), unless a certificate from the Botswana authorities is provided to the payer before payment.

Avoid double taxation and exchange information

Article 23 provides for the tax credit on both sides. In France, the credit is applied against French tax and cannot exceed the corresponding French tax. Botswana grants a tax credit deductible from its own tax, up to the limit of Botswana's tax on the same income.

Article 26, paragraph 5, prohibits refusing to provide information solely because a bank or other financial institution holds it. For a person resident in both States, Article 4 applies, in order, the following criteria: permanent home, center of vital interests, habitual residence, nationality, and then the agreement of the authorities.

What this sheet does not cover

The convention only covers income tax: in France, income tax, corporate tax, and payroll tax; in Botswana, income tax and capital gains tax. It does not cover wealth or inheritance tax. Botswana's local taxes, the mutual agreement procedure, and the concept of a permanent establishment are not detailed.

What changes depending on your situation

• Your residence as defined in Article 4.
• Your participation in the capital at the rate of 5 % on dividends.
• The calendar of your stays, day by day, over each twelve-month period.
• The origin of your pensions: previous employment or social security.

An article should be read in light of the facts in your case, and no result is guaranteed in advance.