- Botswana government has introduced a new vocational training tax, which might impact southern African diamond business.
Local media reports show that a little over a week from today, Botswana Unified Revenue Service (BURS) will start collecting national training levy.
In preparation for levy's introduction on October 1, reports indicate that joint teams of BURS and Botswana Training Authority (BOTA) are holding seminars across country to educate employers, tax consultants, accountants and business community about new tax.
Training levy shall be at rate of 0.2 percent of turnover at P250 000 mark and not more than P2 billion and 0.05 percent in case of turnover in excess of P2 billion, reports show.
"Employers with a turnover of less than P250 000 shall be exempted from payment of this levy. Alongside Vocational Training (Levy) Order is another statutory instrument, Vocational Training (Reimbursement) Regulations. Employers who have incurred training costs shall be entitled to reimbursement from Vocational Training Fund. This Fund will be sustained through money appropriated by parliament, levy imposed by Vocational Training (Levy) Order and money received from any other sources," reports said.
According to reports, every Pula, up to a maximum of P1000 per annum paid into Fund as levy, shall generate reimbursement of P5; every Pula above P1000 but below P5000 per annum shall generate an additional reimbursement of P2.50; and, every Pula in excess of P5000 per annum shall generate an additional reimbursement of P1.25.
"Entitlement to reimbursement shall be in case of employers who have provided training to citizens of Botswana either inside or outside country. An employer may claim reimbursement for training to non-citizens in cases where BOTA is satisfied that training is necessary for security reasons and will not delay localization plans of the claimant," reports said.
They further indicate that eligibility for reimbursement also applies to training that falls within Foundation, Intermediate and Certificate levels of Botswana National Vocational Qualifications Framework; training that includes a minimum of a total of 10 learning hours; training sourced from training institutions accredited under BOTA, Tertiary Education Council, national quality assurance bodies of same standing as BOTA operating in other countries; and, quality assurance criteria and processes comparable to those applied by BOTA.
"No reimbursement shall be provided for training costs in excess of those approved by BOTA. There shall also be no reimbursement for training provided outside Botswana unless BOTA was notified prior to the training about non-availability of such training locally and authorized such training. Southern Africa shall be considered for latter," reports added.
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