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Botswana: Personal Taxation

Payroll Taxes

There is no distinction between unmarried and married individuals.

At the time of writing, the rates of tax are as follows:

  • Taxable income between zero and 36,000: 0%
  • Taxable income between P36,001 and 72,000: 5%
  • Taxable income between P72,001 and 108,000: P1,800 plus 12.5% of excess over P72,000
  • Taxable income between P108,001 and 144,000: P6,300 plus 18.75% of excess over P108,000
  • Taxable income over P144,000: P13,050 plus 25% of excess over P144,000

Non resident individuals, trusts falling under section 14(2) of the Income Tax Act 1995 and the estates of deceased persons are taxed at the following rates:

  • Taxable income between zero and P72,000: 5%
  • Taxable income between P72,001 and 108,000: P3,600 plus 12.5% of excess over P72,000
  • Taxable income between P108,001 and 144,000: P8,100 plus 18.75% of excess over P108,000
  • Taxable income over P144,000: P14,850 plus 25% of excess over P144,000

Contributions to an approved pension or retirement annuity fund or scheme are deductible from chargeable income in ascertaining the taxable income of a resident individual. The deduction is restricted to 15% of non-investment income or the actual contribution, whichever is the lower.

Benefits in cash (traveling, entertainment, education etc.) and value of benefits in kind (housing, motor vehicle, furniture, utilities etc.) provided to an employee are taxable as employee's employment income.

Employers operate pay-as-you-earn schemes, under which the employer is obliged to deduct tax on all remuneration (including cash benefits) according to the Tax Table provided by the Commissioner; employers who have employees liable for tax and all companies must register with the Commissioner of Taxes.

Individuals whose taxable income does not exceed P25,000.00, and all employees the whole of whose income has been subjected to tax deduction under the PAYE scheme, need not furnish tax returns. Employees with other sources of income are required to submit tax returns.

 

 

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