Tax Services

Botswana Unified Revenue Services (BURS) is the revenue service of the Republic of Botswana, which is responsible for collecting taxes and administering the VAT and Income Taxes.

Value Added Tax (VAT) was introduced in Botswana with effect from 1 July 2002. VAT is an indirect tax levied on the supply of goods and services consumed within Botswana. It is called a consumption tax as the amount you pay is directly related to purchases you make. It is not a business expense because it is borne by the consumer.

Taxable Activity

Liability of VAT arises only when a person carries on a taxable activity. Taxable activity is defined as an activity that is carried on continuously or regularly by any person in Botswana, whether or not for profit, that involves the supply of goods or services to another person for consideration.

Taxable supplies – These include both standard-rated supplies and zero-rated supplies.
Standard-rated supplies – These are supplies that are charged VAT at the rate of 12%.
Zero-rated supplies – These are supplies that are charged VAT at the rate of 0%.

Exempt Supplies – These are not subject to VAT and are not counted as part of a person’s taxable turnover.

Registration – Any person making taxable supplies with a value of more than P1,000, 000 per annum must register for VAT purposes.

Input Tax – This is VAT paid to local suppliers or on imported goods subject to VAT and, it is allowed as a credit to a VAT-registered person.

Output Tax – This is VAT charged by a registered person on taxable supplies.

Income Tax:

Tax returns should be submitted within 4 months of the accounting year-end for companies and within 3 months for individuals. The Commissioner General can call for a tax return by a special notice if he thinks a person is likely to leave the country permanently. Such return is to be furnished within a period of not less than 7 days of the special notice.  If a person is unable to submit a return for genuine reasons, he may apply for an extension of time to submit the return. A provisional tax return is required when an extension of time is granted.

Withholding Taxes

PAYE (Pay as You Earn)

An employer with resident employees earning income above the taxable threshold and non-resident employees must deduct tax by applying the relevant tax rate and remit to the Botswana Unified Revenue Services (BURS) on a monthly basis before the 15th day of the succeeding month. Every employer is required to submit an annual return within 31 days after the end of the tax year on 30 June.

Other Withholding Taxes

All rent and commission or brokerage payments to residents or non-residents are subject to WHT at 5% and 10%, respectively, where the total payment is BWP 48,000 per annum or more.

WHT, at the following rates, must be deducted from payments to residents and non-residents unless a DTA exists.