Bw Income Tax

---
name: bw-income-tax
description: "Botswana personal income tax for 2026-27 under the Income Tax Act, 2026: resident and non-resident bands to 27.5%, capital gains bands, residence, small business rules, returns and penalties. Use for individual tax questions in Botswana."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/bw-income-tax"
  jurisdiction: "BW"
  tax_year: "2026"
  last_updated: "2026-11-01"
---

# Botswana Personal Income Tax v1.0

> **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 For 2025-26 and earlier the repealed Act applies (ITA s 144(a)): top rate 25% and no 400,000 band, per BURS tax table Part V heading "Rates for tax years 2020/2021 to 2025/2026".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](https://www.burs.org.bw/index.php/tax/returns)).
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](bw-cross-border.md). 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.

```oa-check
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.

```oa-check
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](bw-payroll-social.md).

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-11-01. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `bw-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/bw-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.