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Understanding Botswana's Tax System

Navigate Botswana's Taxes with Ease

Clear, concise information on corporate and individual income tax, and VAT.

Understanding Botswana's Tax System

Botswana

Botswana's tax system is based on territoriality, meaning income is only taxable if sourced within the country. This includes income from employment, business, and investments. However, income from services performed outside Botswana may be considered a Botswana source if incidental to employment in Botswana. Individuals are taxed on worldwide income, but foreign income is taxed at a lower rate than domestic income.

Corporate Tax Rate

22%

Individual Tax

Worldwide income taxed, with lower rates for foreign income.

Value-Added Tax (VAT)

12% on most goods and services

Individual Income Tax

Tax brackets and rates vary; worldwide income is considered, but foreign income may have reduced taxation. Seek professional advice for your personal situation.

VAT

A 12% VAT applies to most goods and services. Certain goods and services may be exempt.

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