- By virtue of the amendment to the treaty, Botswana is no longer on the NCST list of France
- Can facilitate larger French investments and trade into the county
In a significant development, Botswana was taken out of the list of non-cooperative states and territories (NCSTs) in tax matters by the French government. This follows the ratification of an amendment to the bilateral tax treaty entered between Botswana and the French Republic, which stipulated that information should be shared between the two countries on tax related matters to fight against tax fraud and evasion. By virtue of the amendment to the treaty, Botswana is no longer on the NCST list, which can facilitate larger French investments and trade.
Botswana was included in 2012 on the list of NCSTs of the French Republic. This was mainly due to absence of a bilateral instrument for the exchange of tax information. On the 27th of July 2017, Botswana signed an amendment to the bilateral tax treaty, which was initially launched on 15th of April 1999. The amendment sought by the French government in the bilateral tax treaty was to make it compliable with the latest standards of the Organization for Economic Cooperation and Development (OECD) and to ensure transparency in financial transactions. Now, the French Parliament is examining the amendments effected by Botswana. Therefore, it was decided to remove Botswana from the French list of NCSTs in anticipation of the ratification of the amendment text by the French Parliament.
