Understanding Botswana's Tax System

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.