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Botswana: Personal Taxation

Income Tax

There is no distinction between unmarried and married individuals, though residents and non-residents are taxed slightly differently. The rates of tax are given in the table below:

Income
pula
Tax Rate
0 - 36,000 nil
36,001 - 72,000 5%
72,001 - 108,000 12.5%
108,001 - 144,000 18.75%
Over 144,000 25%

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:

Income
pula
Tax Rate
0 - 72,000 5%
72,001 - 108,000 12.5%
108,001 - 144,000 18.75%
Over 144,000 25%

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 (travelling, 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 submit tax returns. Employees with other sources of income are required to submit tax returns.

 

 

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