Income Tax in Botswana

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

Individuals with Botswana source income, and residents with foreign income. For 2025-26 and earlier the repealed Act applies (ITA s 144(a)): top rate 25% and no 400,000 band, per BURS tax table Part V heading "Rates for tax years 2020/2021 to 2025/2026".

A resident has a permanent home in Botswana, or is present 183 days in any 12-month period starting or ending in the tax year, or is a government employee posted abroad. Any part of a day counts as a day; temporary absence counts as presence. Arrival and departure years are split (s 7). Temporary resident: here only for employment for up to three years, not a citizen or permanent resident (s 7(6)).

Rates, bands and thresholds

Item	Amount	Tax year	Source
Resident 0 to 48,000	0%	2026-27	https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=954:income-tax-act-amendment-2026 (Sch 1 Pt I para 1)
48,001 to 84,000	5% of excess over 48,000	2026-27	same
84,001 to 120,000	P1,800 + 12.5% over 84,000	2026-27	same
120,001 to 156,000	P6,300 + 18.75% over 120,000	2026-27	same
156,001 to 400,000	P13,050 + 25% over 156,000	2026-27	same
400,001 and above	P74,050 + 27.5% over 400,000	2026-27	same
Non-resident 0 to 84,000	5% of every Pula, no tax-free band	2026-27	same
84,001 to 120,000	P4,200 + 12.5% over 84,000	2026-27	same
120,001 to 156,000	P8,700 + 18.75% over 120,000	2026-27	same
156,001 to 400,000	P15,450 + 25% over 156,000	2026-27	same
400,001 and above	P76,450 + 27.5% over 400,000	2026-27	same
Net aggregate gain 0 to 36,000	0%	2026-27	https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=954:income-tax-act-amendment-2026 (Sch 1 Pt I para 2)
36,001 to 84,000	5% over 36,000	2026-27	same
84,001 to 120,000	P2,400 + 12.5% over 84,000	2026-27	same
120,001 to 156,000	P6,900 + 18.75% over 120,000	2026-27	same
156,001 to 400,000	P13,650 + 25% over 156,000	2026-27	same
400,001 and above	P74,650 + 27.5% over 400,000	2026-27	same
Trust, first three years of a deceased estate	resident rates	2026-27	https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=954:income-tax-act-amendment-2026 (Sch 1 para 5)
Any other trust	25%	2026-27	same
Dividend, resident	10%, final	2026-27	https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=954:income-tax-act-amendment-2026 (Sch 1 para 7, s 140)
Interest, resident	10%; final for an individual paid by a bank or building society	2026-27	same

The base

• Retirement fund contribution by a resident out of Botswana source income: deductible up to 15% of taxable income (s 28(5)).
• Donations to an approved body: total must reach P1,000; cap 20% of taxable income (s 34).
• Gratuity, severance, retrenchment: 50% is not taxed; the rest is taxed on receipt or spread over the lesser of the contract term or three years, whichever gives less tax (s 17).
• Commutation of a pension: exempt up to 50% (Sch 2 Pt III para 3).
• Principal private residence owned five years or more: gain exempt, once in five years (Sch 2 Pt VII para 1).
• Listed shares held one year or more on the Botswana Stock Exchange: gain exempt (Sch 2 Pt VII para 2).
• Foreign employment income of a resident: exempt only if taxed where the work is done (Sch 2 Pt VI para 5).
• Small business, individual only: conducted wholly in Botswana, not VAT registered, gross income not above the VAT threshold. Cash basis, 100% depreciation, stock deducted when bought, three-year records (s 53).

Deadlines and filing

1. Log in to e-Tax at https://eservices.burs.org.bw/ (official e portal, Regs reg 28). The e-services application form is on the BURS downloads page.
2. Pick the form by income: ITA20 employment; ITA20B employment plus business; ITA20BF with farming; ITA20F employment and or farming (BURS returns page).
3. Attach ITW8 or ITW9 certificates and accounts where relevant; ITA201 and ITA202 for buildings and plant.
4. Lodge within three months after 30 June, so by 30 September (s 123(1)(b)). A nil or loss year still files (s 123(3)).
5. Pay by the return due date if self-assessing; on an assessment within 28 days of service (s 125).

No return is needed if the only income is employment from a single employer under PAYE, unless BURS asks (s 124). This replaces the old filing rule for income above the threshold. A person overwithheld may choose to file.

Instalments: four equal payments by the 3rd, 6th, 9th and 12th months, with an estimate by the first date, unless estimated tax is under P50,000 (s 127). Capital gain: advance payment within 28 days of disposal (s 128). Extension: apply at least seven days before the due date; up to 28 days, longer only in exceptional circumstances; interest still runs from the original date (TAA s 18).

Penalties and interest

Interest is 1.5% a month or part month, simple (TAA s 41(2), Regs reg 21). Late filing of an income tax return: the greater of P100 a day (cap P20,000) or 10% of unpaid tax a month; the fixed amount never exceeds the tax on the return (TAA s 101). VAT return: the greater of P50 a day (cap P5,000) or 10% a month. Other documents: P50 a day, cap P5,000. Late payment: the greater of P50 a day or 10% a month (TAA s 102), but reg 33 of SI 90 waives this penalty for 12 months from commencement, which runs to 30 June 2027; interest still runs. False statement made deliberately or recklessly: 75% of the shortfall; any other false or misleading statement: 20%. Add 10 points on a second application and 25 on a third or later; half off on voluntary disclosure before discovery or audit (TAA s 103). Failure to e-file or e-pay where required: P20 manual fee (reg 30). Failure to register: 100% of the tax for the period, or P10,000 a month if none is due (TAA s 98).

Objection: within 60 days of the notice (TAA s 27). Records: eight years, in Botswana, in Pula, English or Setswana (TAA s 14).

Cross-border points

See Cross-border. Non-residents: a short-stay employee is exempt if here no more than 90 days in 12 months, taxed at home, paid by a non-resident employer with no Botswana PE cost (Sch 2 Pt VI para 6).

Two worked examples that recompute

Example 1. Resident, taxable income P500,000: P74,050 + 27.5% of P100,000 = P101,550.

name: Resident P500,000
inputs:
  income: 500000
steps:
  - tax: 74050 + (income - 400000) * 0.275
expected:
  tax: 101550.00

Example 2. A decision: resident or non-resident on P60,000. Resident pays 5% of P12,000 = P600. Non-resident pays 5% of P60,000 = P3,000. Residence is worth P2,400.

name: Residence on P60,000
inputs:
  income: 60000
steps:
  - resident: (income - 48000) * 0.05
  - nonresident: income * 0.05
  - difference: nonresident - resident
expected:
  resident: 600.00
  nonresident: 3000.00
  difference: 2400.00

Ask the client first

• Which tax year? Before 1 July 2026 the old Act applies.
• Days in Botswana, and any permanent home?
• One employer only, or other income?
• Any business, farming, rent or foreign income?
• Any disposal of property or shares?

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
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
BURS Tax Table and Guidance Notes, effective 1 July 2026: notes, Examples 4, 5, 14, housing table, allowances	https://www.burs.org.bw/images/Tax%20Table_2026.pdf	2026-11-01
BURS Returns page, form names only (page predates the 2026 Acts)	https://www.burs.org.bw/index.php/tax/returns	2026-11-01

Not yet confirmed: current ITA form numbers under the 2026 Acts and box numbers of each return, which no official page opened gives; shortfall penalty rates below the 75% tier; the social security line of the old file is carried in Payroll.