Government securities | Non-government securities | |||
---|---|---|---|---|
Primary market | T-Bills | Bonds | Corporate | Other |
Tenor/maturity | 182 days | 1 to 24 years | 1 to 14 years | 2 to 14 years |
Auction frequency | Quarterly | Quarterly | Ad hoc | Ad hoc |
Auction method | Dutch auction | Dutch auction | Ad hoc | Ad hoc |
Auction participation | Primary dealers | Primary dealers | Private placement | Private placement |
Bid size | Minimum bid BWP5m | Minimum bid BWP5m | Unlimited | Unlimited |
Secondary market | ||||
---|---|---|---|---|
Turnover range | - | - | - | - |
Liquidity | Low | Low | Low | Low |
Bid/offer spread | 20bp | 20bp | 20bp | 20bp |
Day-count convention | ACT/365 | ACT/365 | ACT/365 | ACT/365 |
Settlement | T+3 | T+3 | T+3 | T+3 |
Taxes | |||
---|---|---|---|
Corporate tax | Residents | Non-residents | |
Corporate income tax rate | 22% | 30% | The corporate income tax for manufacturing and International Financial Services (IFSC) companies is 15%. |
Capital gains tax rate | 22% | 30% | The effective capital gains tax on the sale of shares for both resident and non-resident companies are 16.5% and 22.5% respectively, but certain exemptions do apply. |
Value-added tax | 12% | 12% | Training levies of 0.2% and 0.05% are applicable to turnovers of less than BWP2bn and more than BWP2bn respectively. |
Withholding tax | |||
Dividends | 8% | 8% | - |
Interest | 10% | 15% | A 10% withholding tax is levied on interest paid to residents. |
Source: PwC, KPMG