Tax Administration

Botswana Unified Revenue Services (BURS) is mandated to perform tax assessment and collection functions on behalf of the Government and to take appropriate measures to counteract tax evasion and to improve taxpayer services.

Individual taxation

Non-corporate taxpayers that are obliged to file income tax returns have the option to self assess their tax liabilities for a tax year and to pay the taxes in one lump sum when they file their returns for the tax year. The exemption limit of interest income for resident individuals is P6 000 per year.

Tax rates for individuals are from P30 000 per year and the top marginal rate of 25% applies to income over P120 000 per year.

General administrative provisions

Penalties will be incurred if a tax certificate is not delivered to a contractor by the time of the due date of the payment of the tax withheld i.e. 15th of the following month. Taxpayers have to preserve their books of accounts and other relevant documents for a period of 8 years.

Disposal gains

The income accruing from the disposal of a principal private residence will be exempt from tax if the proceeds are re-invested in another residential property within 24 months of the disposal of the principal private residence. However, if the disposal gains are not so reinvested within a period of 24 months, the exemption would be available only in respect of the most recent disposal of the principal private residence.

Shares, units or debentures of a public company or those actually traded on the Botswana Stock Exchange are exempt from disposal gains tax. For companies that have released 49% or more of their equity shares for trading on the Botswana Stock Exchange sale of any of their equity shares are eligible for tax exemption from the disposal gains tax.

This exemption excludes proceeds arising from sales of shares, units or debentures undertaken by investment or similar companies where the shares, units or debentures are disposed of for profit generation in the ordinary course of business.

Sale of shares of companies, whose underlying dominant assets are immovable properties that result in effectively transferring the property, will be deemed to be the sale of the immovable properties and subject to tax on disposal gains.

Useful contact:
Botswana Unified Revenues Services
www.burs.org.bw