Botswana Personal Taxation

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Botswana Residence and Liability for Taxation

Resident citizens and generally any individual who is physically in Botswana for more than 183 days in any tax year is resident for tax purposes.

Both resident and non-resident individuals are liable for tax on Botswana-sourced income.

Botswana 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 30,000: 0%
Taxable income between P30,000 and 60,000: 5%
Taxable income between P60,000 and 90,000: P1,500 plus 12.5% of excess over P60,000
Taxable income between P90,000 and 120,000: P5,250 plus 18.75% of excess over P90,000
Taxable income over P120,000: P10,875 plus 25% of excess over P120,000

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 P60,000: 5%
Taxable income between P60,000 and 90,000: P3,000 plus 12.5% of excess over P60,000
Taxable income between P90,000 and 120,000: P6,750 plus 18.75% of excess over P90,000
Taxable income over P120,000: P12,375 plus 25% of excess over P120,000

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.

Botswana Capital Taxes

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 P15,000 and 60,000: 5%
Taxable gains between P60,000 and 90,000: P2,250 plus 12.5% of the excess over P60,000
Taxable gains between P90,000 and 120,000: P6,000 plus 18.75% of the excess over P90,000
Taxable gains over P120,000: 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 P100,000.00 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 the next P200,000: 3%
On the next P200,000: 4%
On the balance: 5%

For resident or non-resident companies, the rate of Capital Transfer Tax is 12.5%.

BOTSWANA: PERSONAL TAXATION

On this Page:

Botswana Residence and Liability for Taxation

Botswana Payroll Taxes

Botswana Capital Taxes