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The Income tax rates and personal allowances in Botswana are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Botswana Tax Calculator 2023.
Personal income tax earned by resident employees is generally recovered by withholding tax under pay as you earn (PAYE) at the source. This way taxes are deducted directly from the salary by the employer and paid directly to the government.
Withholding tax is to be paid within 15 days of the end of the month of the deduction.
Residents with gross income exceeding P 48,000.00 are required to register as taxpayers and file their tax returns not later than 30th September. Extensions are given on requests.
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 0% | Income from P 0.000.00 | to | P 48,000.00 |
| 5% | Income from P 48,000.01 | to | P 84,000.00 |
| 12.5% | Income from P 84,000.01 | to | P 120,000.00 |
| 18.75% | Income from P 120,000.01 | to | P 156,000.00 |
| 25% | Income from P 156,000.01 | and above | |
Non-residents who derive income from the source in Botswana are required to register as taxpayers in Botswana. They are liable for filing tax returns in the same way as residents. Non-residents are taxed differently from residents as there is no exemption on first P 48,000.00 earned. This, however, is charged on the minimum tax bracket of 5%.
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 5% | Income from P 0.000.00 | to | P 48,000.00 |
| 12.5% | Income from P 48,000.01 | to | P 84,000.00 |
| 17.75% | Income from P 84,000.01 | to | P 120,000.00 |
| 25% | Income from P 120,000.01 | and above | |
Every vendor making supplies more than P 1,000,000.00 is required to be registered for VAT (Value Added Tax).
| VAT Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 0% | School fees, postal services and cremation/ burial services are exempt from VAT. Input VAT can be claimed for zero rated supplies that include: Essential food items, books, newspapers, construction of residential buildings, transportation costs for supplies for charity, etc. | ||
| 12% | Standard Rate imposed on all imported goods and taxable supplies in Botswana | ||
Vocational Training Levy (VTL) is payable at the time of submission of VAT return. It is calculated as a percentage of turnover. This ranges from 0.2% to 0.05%.
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 0% | Income from P 0.000.00 | to | P 18,000.00 |
| 5% | Income from P 18,000.01 | to | P 72,000.00 |
| 12.5% | Income from P 72,000.01 | to | P 108,000.00 |
| 18.75% | Income from P 108,000.01 | to | P 144,000.00 |
| 25% | Income from P 144,000.01 | and above | |
Disposal of assets like equipment, plants, furniture, vehicles, etc. are exempted from capital gain tax. In addition to this capital gains from disposal or restructure of two or more companies are also tax exempt in Botswana.
| Tax Rate | Percentage of CG subject to tax | Applies to |
|---|---|---|
| 22% | 75% | Resident Company |
| 30% | 75% | Non-resident Company |
There is a standard transfer duty tax on immovable Freehold /leased properties in Botswana.
| Tax Rate | Threshold / Rate | Applies to |
|---|---|---|
| P 200,000.00 | 75% | Transfer Duty Threshold |
| 5% | 75% | Transfer Duty Rate |
| 5% | 75% | Non-resident Transfer Duty Rate for Agricultural Equipment |
Taxes, including personal income tax, expenses and limitations are reviewed by the Government in Botswana periodically and typically updated each year. Not that not all tax rates and thresholds in Botswana change annually, alterations to tax policy to support strategic economic growth in Botswana mean that the certain areas may be focused on to provide specific tax relief in Botswana or support growth in certain areas (overseas invstment in Botswana for example may mean reduced non-resident income tax rates in Botswana for a period).
When tax policy in Botswana changes, the resultant tax tables also change. Tax tables in Botswana are simply a list of the relevent tax rates, fixed amounts and / or threholds used in the computation of tax in Botswana, the Botswana tax tables also include specific notes and guidance on the validity of scenarios (for example, qualifying criterea for specific tax relief / allowances) and notes of the calculation of phaseout of specific tax elements within each taxation group (dividends and corporation tax thresholds in Botswana for example).
Botswana Tax Tables may also be referred to as Botswana Tax Slabs, Botswana personal allowances and tax thresholds or Botswana business tax rates. They all refer to the tax tables, whether in whole or as specific sections/categories of the tax tables therein. In the section, we publish all 2023 tax rates and thresholds used within the 2023 Botswana Salary Calculator. This means that if you are aware of a 2023 tax exemption or 2023 tax allowance in Botswana that you are entitled too BUT it isn't listed here, that we don't allow for it in this version of the Botswana Salary Calculator. This is simply because we updated our tax calculators based on user feedback, we tailor the Botswana Salary Calculator to suit our users needs. Our aim is to keep tax calculations in Botswana simple, we achieve this my making the Botswana tax calculators relevent to our community's needs, this includes you. So, if you would like a new 2023 tax rates, allowance or threshold adding (or perhaps updating), or if you notice an error in our 2023 tax calculations, simply contact us and we will adjust the tool.
Choose a specific income tax year to see the Botswana income tax rates and personal allowances used in the associated income tax calculator for the same tax year.