Botswana: Personal Taxation
The income accruing from the disposal of a principal private residence will be exempt from tax if the proceeds are re-invested in another residential property within 24 months of the disposal of the principal private residence. However, if the disposal gains are not so reinvested within a period of 24 months, the exemption would be available only in respect of the most recent disposal of the principal private residence.
At the time of writing, the following rates apply:
- Taxable gains between zero and P15,000: 0%
- Taxable gains between P15,001 and 60,000: 5%
- Taxable gains between P60,001 and 90,000: P2,250 plus 12.5% of the excess over P60,000
- Taxable gains between P90,001 and 120,000: P6,000 plus 18.75% of the excess over P90,000
- Taxable gains over P120,001: P11,625 plus 25% of the excess over 120,000
In Botswana's 2006 budget, the law was amended to stipulate that any sale of shares held by a taxpayer in a company, where immovable property is the dominant underlying asset, will be deemed to be a sale of the underlying immovable property and will be taxed accordingly.
A capital transfer tax is levied on the donatee on the aggregate value of the gratuitous disposal of property and the distribution of property by way of inheritance (other than to one's spouse).
In the case of the disposal of assets of a deceased person, the first P100,000 is not liable.
At the time of writing, the rates of tax for a person other than a company are as follows:
- On the first P100,000: 2%
- On P100,001-P300,000: P2,000 plus 3% over P100,000
- On P300,001-P500,000: P8,000 plus 4% over P300,000
- On P500,001 and over: P16,000 plus 5% over P500,000
For resident or non-resident companies, the rate of Capital Transfer Tax is 12.5%.