Botswana Cross-Border Tax

General reference only. This skill is general tax reference material. It has not been reviewed for any specific person's facts. Check figures against the official sources named here.

Tax year: 2026-27 (1 July 2026 to 30 June 2027). The Income Tax Act, 2026, Tax Administration Act, 2026 and Value Added Tax Act, 2026 commenced on 1 July 2026 and replace the old Cap. 52:01 and Cap. 50:03 regimes.

Who this applies to

Non-residents earning in Botswana, residents with foreign income, and payers abroad.

Rates, bands and thresholds

Item	Amount	Tax year	Source
Dividend to non-resident	10%	2026-27	https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=954:income-tax-act-amendment-2026 (Sch 1 para 6)
Interest, royalty, technical fee, director's fee	15%	2026-27	same
Repatriated profit of a PE	10%	2026-27	same
Entertainer	10%	2026-27	same
Insurance premium	3%	2026-27	same
Capital gain of a non-resident with no Botswana PE, withheld by buyer	10% of gross consideration	2026-27	https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=954:income-tax-act-amendment-2026 (Sch 1 para 6, s 132(3))
Remote supplier VAT threshold	P500,000	2026-27	https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=958:value-added-tax-act-2026 (Sch 5 para 3)

The base

• Withholding on non-residents is final (s 140). Tax treaties can exempt amounts (Sch 2 Pt VI para 1).
• Payment to an address abroad triggers withholding (s 132(2)). IFSC payers and some collective investment undertakings are excused (s 132(5)).
• Buyer or seller can ask BURS to vary the capital gain rate (s 132(4)).
• Foreign tax credit: lesser of foreign tax paid and Botswana tax on that income, by business and investment class, paid within two years (s 96).
• Low tax entity: a resident holding 50% or more includes A x B of investment income (s 119).

Deadlines and filing

Pay withholding within 14 days after the month (s 138). PE non-resident tax falls due with the return (s 125(2)). Remote suppliers file quarterly via https://eservices.burs.org.bw/remote-services/home.

Penalties and interest

See company tax. The payer is personally liable.

Cross-border points

Treaty rate first if a treaty applies; keep a residence certificate.

Two worked examples that recompute

Example 1. Technical fee P500,000 at 15% = P75,000.

name: Technical fee
inputs:
  fee: 500000
steps:
  - wht: fee * 0.15
expected:
  wht: 75000.00

Example 2. A decision: branch or subsidiary on P1,000,000 profit fully paid out. Subsidiary: tax P245,000, dividend tax on P755,000 at 10%. Branch, if all is repatriated, gives the same rates.

name: Paid out
inputs:
  profit: 1000000
steps:
  - tax: profit * 0.245
  - second: (profit - tax) * 0.10
  - total: tax + second
expected:
  tax: 245000.00
  second: 75500.00
  total: 320500.00

Ask the client first

• Who is paying whom, and from where?
• Recipient's residence, and is there a treaty?
• Any presence or staff in Botswana?
• Assets in Botswana being sold?
• Foreign tax paid?

Sources

Source	Link	Read
Income Tax Act, 2026 (No. 13 of 2026), read: ss 7, 8, 17, 28, 34 to 37, 53, 96, 117, 119, 123 to 144, Schedules 1 to 3; Regulations SI 92 and Commencement Order SI 93 in the same file	https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=954:income-tax-act-amendment-2026	2026-11-01
Value Added Tax Act, 2026 (No. 15 of 2026), read: ss 7 to 9, 12 to 14, 28, 54, 57, 65, 66, Schedules 1, 2, 5; Regulations SI 94 and Order SI 95 in the same file	https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=958:value-added-tax-act-2026	2026-11-01
Tax Administration Act, 2026 (No. 14 of 2026), read: ss 14, 18, 27, 41, 98, 101 to 103; Regulations SI 90 regs 3, 4, 21, 28, 30, 33, 34 in the same file	https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=955:tax-administration-act-2026	2026-11-01

Not yet confirmed: the list of treaties and their rates (no official list opened); how repatriated profit is measured in s 99 (not read in full).