12/07/2025
In Botswana, the tax system includes several types of taxes imposed by the Botswana Unified Revenue Service (BURS). Here are the main types of taxes:
1. Income Tax
Individual Income Tax: Tax on income earned by individuals (salaries, wages, business income, etc.).
Corporate Tax: Tax on profits earned by companies. The standard rate is:
22% for resident companies.
30% for non-resident companies.
15% for manufacturing companies and IFSC (International Financial Services Centre) companies.
2. Value Added Tax (VAT)
Currently at 14% (increased from 12% in April 2021).
Applied to most goods and services sold in Botswana.
Some items (e.g., basic foodstuffs) are zero-rated or exempt.
3. Withholding Tax
Deducted at source on certain types of payments:
Dividends – 7.5% for residents, 15% for non-residents.
Interest – 10% for residents, 15% for non-residents.
Rent, royalties, commissions, and management fees – 10% or 15%.
Consultancy fees – 10%.
4. Capital Gains Tax
Tax on profits from the sale of capital assets such as land, buildings, or shares.
5. Transfer Duty
Paid when property is transferred.
5% for citizens.
30% for non-citizens (introduced in 2020).
6. Pay As You Earn (PAYE)
Employers deduct income tax from employees' salaries and remit to BURS monthly.
7. Customs and Excise Duties
Levied on imported and certain exported goods.
Administered under the Southern African Customs Union (SACU) agreement.
8. Training Levy
Employers pay a levy to support skills development:
0.2% of gross turnover for manufacturing.
0.5% for non-manufacturing businesses.
9. Motor Vehicle Taxes
Includes annual road tax and import duties on vehicles.
