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Botswana: Personal Taxation |
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- BOTSWANA
RESIDENCE AND LIABILITY FOR TAXATION
- BOTSWANA PAYROLL TAXES
- BOTSWANA CAPITAL TAXES
Botswana
Residence and Liability for Taxation
Resident
citizens and generally any individual who is
physically in Botswana for more than 183 days
in any tax year is resident for tax purposes.
Both
resident and non-resident individuals are liable
for tax on Botswana-sourced income.
Botswana Payroll Taxes
There
is no distinction between unmarried and married
individuals.
At
the time of writing, the rates of tax are as
follows:
-
Taxable income between
zero and 36,000: 0%
- Taxable
income between P36,001 and 72,000: 5%
- Taxable
income between P72,001 and 108,000: P1,800
plus 12.5% of excess over P72,000
- Taxable
income between P108,001 and 144,000: P6,300
plus 18.75% of excess over P108,000
- Taxable
income over P144,000: P13,050 plus 25% of
excess over P144,000
Non
resident individuals, trusts falling under section
14(2) of the Income Tax Act 1995 and the estates
of deceased persons are taxed at the following
rates:
- Taxable
income between zero and P72,000: 5%
- Taxable
income between P72,001 and 108,000: P3,600
plus 12.5% of excess over P72,000
- Taxable
income between P108,001 and 144,000: P8,100
plus 18.75% of excess over P108,000
- Taxable
income over P144,000: P14,850 plus 25% of
excess over P144,000
Contributions
to an approved pension or retirement annuity
fund or scheme are deductible from chargeable
income in ascertaining the taxable income of
a resident individual. The deduction is restricted
to 15% of non-investment income or the actual
contribution, whichever is the lower.
Benefits
in cash (traveling, entertainment, education
etc.) and value of benefits in kind (housing,
motor vehicle, furniture, utilities etc.) provided
to an employee are taxable as employee's employment
income.
Employers
operate pay-as-you-earn schemes, under which
the employer is obliged to deduct tax on all
remuneration (including cash benefits) according
to the Tax Table provided by the Commissioner;
employers who have employees liable for tax
and all companies must register with the Commissioner
of Taxes.
Individuals
whose taxable income does not exceed P25,000.00,
and all employees the whole of whose income
has been subjected to tax deduction under the
PAYE scheme, need not furnish tax returns. Employees
with other sources of income are required to
submit tax returns.
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Botswana
Capital Taxes
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.
At
the time of writing, the following rates apply:
- Taxable
gains between zero and P15,000: 0%
- Taxable
gains between P15,001 and 60,000: 5%
- Taxable
gains between P60,001 and 90,000: P2,250
plus 12.5% of the excess over P60,000
- Taxable
gains between P90,001 and 120,000: P6,000
plus 18.75% of the excess over P90,000
- Taxable
gains over P120,001: P11,625 plus 25% of
the excess over 120,000
In
Botswana's 2006 budget, the law was amended
to stipulate that any sale of shares held by
a taxpayer in a company, where immovable property
is the dominant underlying asset, will be deemed
to be a sale of the underlying immovable property
and will be taxed accordingly.
A
capital transfer tax is levied on the donatee
on the aggregate value of the gratuitous disposal
of property and the distribution of property
by way of inheritance (other than to one's spouse).
In
the case of the disposal of assets of a deceased
person, the first P100,000 is not liable.
At
the time of writing, the rates of tax for a
person other than a company are as follows:
- On
the first P100,000: 2%
- On
P100,001-P300,000: P2,000 plus 3% over P100,000
- On
P300,001-P500,000: P8,000 plus 4% over P300,000
- On
P500,001 and over: P16,000 plus 5% over
P500,000
For
resident or non-resident companies, the rate
of Capital Transfer Tax is 12.5%.
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