Taxes in Botswana

The Botswana tax year runs from 1 July to 30 June. The 2026 Income Tax, VAT and Tax Administration reform package took effect on 1 July 2026. Some BURS webpages, forms and deadlines still show the previous framework, so post-reform requirements should be checked against the current BURS material and e-Laws. Botswana uses the pula for tax payments, and no general registration fee is evidenced in the reviewed sources. No separate municipal income tax is evidenced in the reviewed national framework. The main authorities are the Botswana Unified Revenue Service, the Commissioner General and the Ministry of Finance. The reformed system also provides for a Tax Tribunal. Income Tax covers employment, business, investment income and capital gains for individuals and companies. Capital Transfer Tax applies to gifts and estates, with liability potentially resting on the beneficiary or donee. Transfer Duty applies to transfers of immovable property. An individual can be taxable as a resident when the person has a permanent home in Botswana, spends at least 183 days in any 12-month period in Botswana, or is a government employee serving abroad. A nonresident is generally taxed on Botswana-source income. Common individual tax situations include employment, sole trading, partnerships, rental income, farming, pensions and individual returns. Employers deduct PAYE from salary, wages, bonuses, allowances, commissions, pensions, lump sums and non-cash benefits, remit it to BURS, reconcile it annually and provide an employee certificate. For a resident individual, the published income-tax bands are 0% up to P48,000, 5% on the amount from P48,001 to P84,000, P1,800 plus 12.5% above P84,000 up to P120,000, P6,300 plus 18.75% above P120,000 up to P156,000, P13,050 plus 25% above P156,000 up to P400,000, and P74,050 plus 27.5% above P400,000. Nonresident individual rates start at 5% up to P84,000, followed by bands using 12.5%, 18.75%, 25% and 27.5%; the published formulas begin with P4,200 above P84,000, P8,700 above P120,000, P15,450 above P156,000 and P76,450 above P400,000. Net aggregate gains are exempt up to P36,000 and then follow bands using 5%, 12.5%, 18.75%, 25% and 27.5%. A business generally calculates taxable profit by subtracting allowable business expenses from income. The standard company rate is 24.5%. Approved financial operations of an International Financial Services Centre company are taxed at 17.5%, while other IFSC income is taxed at 24.5%; mutual associations use 5%, trusts 25% and non-approved funds 24.5%. Mining companies follow a statutory formula with a minimum rate of 24.5%. Companies generally make quarterly self-assessment payments. A legacy BURS rule required a company final return four months after the financial year, but the applicable deadline after 1 July 2026 should be confirmed under the reformed administration law. Business losses can generally be carried forward, although a change of more than 50% in ownership can restrict their use. Approved training expenditure can receive a 200% deduction, and donations are generally limited to 20% of taxable income. A simplified income-tax path for small businesses has been legislated, but its current conditions should be checked before use. Withholding tax applies to specified payments. For residents, published rates include 10% on dividends, interest, director fees and commission or brokerage, 3% on construction and 5% on rent. Nonresident rates include 10% on dividends, 15% on interest, royalties and technical fees, 5% on insurance premiums, 10% on entertainers, 15% on director fees and natural-resource amounts, 10% on repatriated profits and 3% on international air transport. The resident construction threshold and conditions should be verified under the current Act. A double-tax treaty can replace a domestic withholding rate where its requirements are met. VAT has a standard rate of 14%, while zero-rated supplies use a 0% rate. Taxable supplies, imports and specified reverse-charge transactions fall within the system. Compulsory VAT registration generally begins when annual taxable supplies exceed P1,000,000. Remote-service suppliers have a P500,000 threshold, and voluntary registration is available above that amount. Registration is due within 21 days after liability arises, while returns and payment are generally due within 28 days after the relevant tax period. Import VAT is paid at import. For remote services supplied through an electronic marketplace, the marketplace can be treated as the deemed supplier. Reverse charge can apply to a registered person or a large unregistered person. A nonresident supplying only remote services uses quarters ending on 31 March, 30 June, 30 September and 31 December. Electronic invoicing and remote-VAT measures are being rolled out in 2026. Input-credit or refund claims generally have a two-year limit from the relevant period, subject to statutory conditions. Tax administration begins with BURS registration and a TIN. Individuals may need an Omang or other identity document and a residence or work permit. Businesses commonly use a Registrar of Business Names registration, and companies may need incorporation and director documents. e-Tax supports relevant Income Tax, VAT, PAYE and withholding-tax returns. A Tax Clearance Certificate can be required for practical dealings with authorities or counterparties. Taxpayers have duties to register, keep accurate records, file returns, withhold and pay tax where required, and cooperate with an audit. They also have rights to refunds, objections, appeals, treaty relief and foreign-tax credits. The 2026 reform changes the administration of assessments, amended returns, self-assessments, estimated assessments, late-payment interest, penalties, objections and appeals. Older BURS pages refer to a 30-day VAT objection period and a 60-day income-tax objection period, but those deadlines should not be applied after 1 July 2026 without checking the current law. BURS can assess tax, examine records and conduct audits; late payment or inaccurate compliance can lead to interest and penalties. International rules cover Botswana-source income and activities, including Botswana immovable property, dividends and director fees from resident companies, Botswana assets, natural resources, Botswana-risk insurance, performances in Botswana, and interest, royalties, technical fees, pensions or annuities paid by residents. A permanent establishment can arise from services or construction lasting more than 183 days in a 12-month period. Cross-border cases may involve foreign-tax credits, foreign-loss restrictions, transfer pricing, anti-avoidance rules, income-splitting rules and rules for low-tax entities. BURS treaty specialists handle double-tax-agreement interpretation, mutual agreement procedures and information exchange. Cross-border remote VAT can apply separately from income-tax rules.