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Botswana: Guidance for deferral of income tax payments (COVID-19)

Botswana: Guidance for deferral of income tax payments

The Minister of Finance on 4 May 2020 published guidance—the Income Tax (COVID-19) (Deferment of Self-Assessment Tax) Order, 2020—that provides the mechanisms for deferring the payment of income tax as a relief measure in response to the coronavirus (COVID-19) pandemic.

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The guidance in the order is effective retroactively from 1 March 2020 and is subject to ratification of legislation (Emergency Powers (COVID-19) (Amendment) (No. 4) Regulations, 2020) by the National Assembly.

The order stipulates that the rules for the deferral of tax payments apply to taxpayers with businesses that have been adversely affected by the pandemic and resulting lockdown. Taxpayers must satisfy certain requirements in order to qualify for the deferral relief (including, for example, a valid tax clearance certificate and approval by the Commissioner General). Payments that are eligible for this relief include quarterly installments of self-assessment tax and the final top-up payment and estimated annual tax that is payable by an individual or a person other than a company. For late payments of tax, compound interest of 1.5% per month will be imposed on deferred amounts that remain unpaid after 31 December 2021.

Applications need to be made in electronic format to the Commissioner General and clearly state the tax payment in respect of which deferment is being sought. The authorities are to respond to an application within 14 days of submission.


Read a May 2020 report [PDF 76 KB] prepared by the KPMG member firm in Botswana


For more information, contact a KPMG tax professional in Botswana:

Olivia Muzvidziwa | +26 777 19 9022 | olivia.muzvidziwa@kpmg.bw

Leonard Muza | +26 777 19 9067 | leonard.muza@kpmg.bw

Masa Selerio | +26 777 19 9069 | masa.selerio@kpmg.bw

Kenneth Sakonda | +26 777 19 9079 | kenneth.sakonda@kpmg.bw

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