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Botswana - Other taxes and levies

Botswana - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes in Botswana? If so, what are the rates for employers and employees?

There are no social security taxes in Botswana.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Botswana?

See Other Taxes below.

Real estate tax

Are there real estate taxes in Botswana?

See Other Taxes below.

Sales/VAT tax

Are there sales and/or value-added taxes in Botswana?

There is a 12 percent value-added tax payable on most goods and services consumed in Botswana. Employee services provided to an employer do not give rise to VAT.

Unemployment tax

Are there unemployment taxes in Botswana?

No.

Other taxes

Are there additional taxes in Botswana that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Capital transfer tax


Capital transfer tax is payable by individuals upon the disposal by way of inheritance, donation, or other gratuitous disposal of property.

Capital transfer tax payable by the donee, including a trustee to whom property has been disposed for the benefit of a beneficiary and is based on a sliding scale. The sliding scale values vary from 2 percent to 5 percent based on the net aggregate gains realized on the disposal of the property.

Property, which is liable to capital transfer tax, is defined as any right to movable or immovable, corporeal, or incorporeal property wherever situated.

The following disposals of property are exempt from capital transfer tax:

  • inheritance to a spouse on the death of the other spouse
  • donations to a spouse during the lifetime of that spouse
  • gifts to a person on their marriage the value of which does not exceed BWP5,000
  • household goods and personal belongings which have been inherited from a deceased person up to a value of BWP15,000
  • property situated outside Botswana disposed of to a non-resident
  • property disposed of for the purpose of maintaining or the education of a child who is under the age of 21 years or is undergoing full time education or training; and
  • casual gifts, which do not exceed BWP5,000 in value.

Capital transfer tax payable by individuals is calculated based on the following rates.

Capital transfer tax rates

Net aggregate gains

 

Tax payable

From BWP

To BWP

 

0

100,000

BWP0 + 2% over BWP0

100,001

300,000

BWP2,000 + 3% over BWP100,000

300,001

500,000

BWP8,000 + 4% over BWP300,000

500,001

Over

BWP16,000 + 5% over BWP500,000

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?

No, there is no requirement to declare/report offshore assets to the country/jurisdiction’s fiscal authorities, however, Botswana sourced income is to be declared on submission of the return and relief will be granted for foreign tax paid on the amounts.

Disclaimer

All information contained in this publication is summarized by KPMG in Botswana, the Botswana partnership and member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Income Tax Act (Chapter 52:01) of Botswana as amended together with the Departmental Guidance Notes issued by the Botswana Unified Revenue Service, Ministry of Employment, Labour Productivity and Skills Development (permit applications), Ministry of Nationality, Immigration and Gender Affairs (visa applications), and the Botswana Immigration Act.

© 2021 KPMG, a Botswana partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
 

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

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