Botswana Payroll & Social Contributions

PAYE withholding

Employers operate PAYE — withholding income tax from employee remuneration using the individual tax tables — and remit monthly to BURS.

• PAYE — Employers withhold income tax from salary, wages and taxable benefits using the resident/non-resident individual tax tables (Income Tax Act (Cap. 52:01))
• PAYE applies above — BWP 48,000 per year (resident tax-free threshold) BWP (Income Tax Act (Cap. 52:01), Second Schedule)

Social security / pensions

Botswana has no general mandatory state social-security or national pension contribution. There is no statutory employer/employee social-security payroll levy beyond PAYE.

• Mandatory social security — None — no general statutory social-security or national pension contribution for employees or employers (PwC Worldwide Tax Summaries — Botswana)
• Occupational pensions — Workplace pension/provident funds are voluntary/employer-arranged and regulated, not a universal state scheme ((approx — confirm)) (approx — confirm) (Retirement Funds Act)

Vocational Training Levy

A separate employer/turnover levy funds vocational training; it is not a payroll deduction but is a standing employer obligation.

• Vocational Training Levy — up to BWP 2bn turnover — 0.2% of annual turnover (turnover up to BWP 2 billion) % (Vocational Training Act / Value Added Tax Act administration)
• Vocational Training Levy — above BWP 2bn turnover — 0.05% on turnover above BWP 2 billion % (Vocational Training Act / Value Added Tax Act administration)

Employer obligations and deadlines

Employers remit PAYE monthly and file annual reconciliations and employee tax certificates after the 30 June year-end.

• Monthly PAYE remittance — By the 15th of the month following the deduction, with a monthly PAYE return (Income Tax Act (Cap. 52:01))
• Annual PAYE reconciliation (Form ITW10) — Due by 31 July following the 30 June tax year-end ((approx — confirm current form/date)) (approx — confirm current form/date) (Income Tax Act (Cap. 52:01))
• Employee tax certificate (Form ITW8) — Issued to each employee by 31 March following the tax year-end ((approx — confirm current form/date)) (approx — confirm current form/date) (Income Tax Act (Cap. 52:01))