www.burs.org.

bw
EXAMPLE
Ms BURS works for Botswana Government. Below find her income for WHERE DO I FIND BURS?
the 2007/2008 tax year. INDIVIDUAL TAX RATES

1. Salary 75000 tax of P1 850 has been deducted through PAYE by TABLE I
Gaborone Office
the employer RESIDENT TAX RATES
Private Bag 0013
2. Rental Income of P 12 000. The following expenses were incurred
Gaborone
at the house that is being rented out;
Tel: 363 8000/ 9000
Remuneration Tax to be
• Changed corrugated roofing to tiles 6 000.00
Fax: 395 3101
deducted
• Replaced locks 300.00
3. Interest from BBS Subscription Shares account =7 000.00
More than but Less than Francistown Office
(PULA) Private Bag 38
4. Butchery; the financial statements show a profit of P 38 000
0 30 000 Nil Francistown
Tax due from the income
Tel: 2413635
30 000 60 000 0 + 5% of the excess over 30 000
Fax: 2413114
1 500 +12.5% of excess over P60
Rental Income 12 000 60 000 90 000
000 Maun Office
Less 300 5 250 + 18.75% of excess over P.O. Box 219
90 000 120 000
11 700 P90 000 Maun
Tel: 686 1321
120 000
*The roofing will not be allowed as deduction before tax because it is
10 875 + 25% excess over P120 000 Fax: 686 0194
and above
an amount of a capital nature, thus it will be increasing the value of
the house.
Selebi Phikwe Office

P.O. Box 129
TABLE II
*Interest from BBS account is exempt thus it is not taxable
Selibe Phikwe
NON RESIDENT TAX RATES
Tel: 261 3699
Fax: 261 5367
Calculation of Tax for Ms BURS Remuneration Tax to be
deducted Palapye Office
Salary 75 000
More than but Less than P.O. Box 97
Rental Income 11 700
(PULA) Palapye
Business (Butchery) 38 000 0 60 000 5 % of every pula Tel: 492 0784
124 700 Fax: 492 0388
3 000 + 12.5% of the excess over
60 000 90 000
Tax on the 124 700 P60 000
Lobatse Office
1st 120 000 10 875 90 000 120 000
6 70 + 18.75% of the excess over P.O. Box 263
P60 000 Lobatse
Excess @ 25 %( 4700* 25%) 1 175
120 000 Tel: 533 0566
12 050 12 375 + 25% of excess Fax: 533 2477
and above
Less Tax Already Paid (PAYE) (1 850)
Ghanzi Office
Tax Payable 10 200 P/Bag 0018
TABLE III
Tax table for net aggregate gains of individuals Ghanzi
Tel: 659 6463
Taxable Income Tax
0 - 15 000 0
15 000 – 60 000
60 000 – 90 000
0+5% of excess over P 15 000
2 250 + 12.5% of excess over P 30 000 Toll free number for Tax Enquiries INDIVIDUAL TAXATION
0800 600 649
90 000 – 120 000 6 000 + 18.75% of excess over P 60 000
Over 120 000 11 625 + 25% of excess over P 120 000

www.burs.org.bw
 N.B. Mortgage Loan repayment is not allowed as a deduction because it is

INDIVIDUAL TAXATION considered to be capital in nature.

The following computations are used when calculating disposal income;
Improvements are not allowed as an expense as they are considered to ROYALTIES
be of capital expenditure; thus, they increase the value of the property. Immovable Property � This is earnings from intellectual rights either to a property or a
INTRODUCTION
Example; changing the roof, erecting screen wall etc. When computing the gain an allowance is given to cater for the effect service e.g. earnings from book writing, songs, poems, software
The objective of this brochure is to help you as taxpayers identify the
of inflation. development etc.
different income that may accrue to an individual.
BUSINESS INCOME � For properties bought before 1st July 1982, the allowance is applied � Royalties earned by a resident person should be included in his
This is income from business that is run by an individual. Expenses that using a compounding Factor of 10%. return
TAXATION OF INDIVIDUALS
have been incurred for running the business are allowed as a deduction � For properties after 1July 1982, the allowance is given through the � Non- Resident persons receiving royalties is subjected to a 15%
Individuals are taxed on;
before tax. The following are some of the expenses that are allowed for application of National Cost of Living Index (NCOLI)/ Indexation. withholding tax.
1. Employment Income
deduction;
2. Rental
� Salaries and Wages *NCOLI Date of Sale – NCOLI Date of Purchase x Purchase Price HOW DO I PAY TAX?
3. Business (trade or profession)
� Rent NCOLI Date of Purchase � Register with BURS(refer to the registration brochure for information
4. Interest
� Motor Vehicle Expenses on registration)
5. Farming
� Repairs and Maintenance etc. EXAMPLE � BURS will send tax returns at the end of the tax year for you to
6. Property disposals
Mr X bought a house for P 105 000 in March 2001. He sold it for P350,000 complete, where returns are not issued to you in any tax year, you
7. Income from foreign investments
INTEREST INCOME in November 2006. Expenses relating to the sale amounted to P6,500. are requested to ask for them from BURS as it is your obligation to
8. Royalties
This is income that is earned from cash held on savings accounts, submit returns.
9. Partnership Income
certificate of deposits, bonds or other investments. Interest can also be NCOLI is as follows; March 2001 P587.20: November 2006 P935.4 � Submit the return annually to BURS offices by 30th September of
earned from loans to companies by directors and shareholders. every year
NOTE: all the income is added together in order to be able to get the Disposal / Capital gain P
� BURS will issue an assessment which will show the tax that you
tax bracket that the individual falls into, except disposal income which
� Interest from shareholders’s loan wholly taxable. Sale Proceeds 350 000 have to pay.
is taxed separately.
� Interest that is taxable is interest from any banking institution or Less Selling Expenses � When paying use the remittance slip for assessed tax.
6 500
building society in excess of P 6000.00 per annum, Non- Resident e.g. Legal Fees
EMPLOYMENT INCOME
taxpayers do not get the P6 000 exemption 343 500 TYPES OF INDIVIDUAL RETURNS
(for more information refer to the Employment Chargeable
Income Brochure)
� There is withholding tax on Interest; Residents 10% and Non Individuals having any other source of income beside employment
Residents 15% as final tax. Less Purchase Price 105 000
income must submit tax return. If you are an individual and your only
For employment, tax is deducted by the employer from the employment � Interest from Botswana Savings Bank is not taxable. 238 500 source of income is employment, there is no need to complete a return
income ‘salary’ through Pay As You Earn (PAYE). � Interest on any subscription share issued by any building society in unless you have been over/under taxed.
935.4 - 587.20 x 105 000
Botswana is not taxable Less Indexation 62 263
587.20
What is employment? • ITA 20; this return is used by taxpayers who have Employment
Disposal Gain 176 236
FARMING INCOME Income only. It is to be used only when an individual has been over
� Any activity where; (For more information refer to the Farming brochure) or under taxed. An ITW8 (tax certificate) should be attached to the
This is income from farming operations. Any individual who has; Tax due on P176 236 will be calculated as:
• A relationship of master and servant subsists return as it will show the tax deducted for the period
Use Table III Rates below
• There is an appointment or office, public or not • ITA 20B; this return is used by individuals with Employment
• Whether or not that relationship is permanent � More than 300 heads of cattle or 1800 sheep or goats First 120 000 11 625 Income and Other Sources of Income e.g. business, rental,
� More than 100 hectares of dry land farming is considered to be in Excess @ 25 %( 25%* (176236-120000) 14 059 interest, royalties etc.
� Employment income includes the business of farming and as such is required by the law to pay • Self Employed individuals also declare their income using this
25 864
• Salaries, wages, bonus, commission, allowances, director’s tax. type of return.
fees; • ITA20BF; this return is used by Individuals who have employment,
Movable property (e.g. Shares)
• Terminal and other lumpsum payments e.g. Gratuity, Note: anyone with lesser amounts has an option to register with BURS business, and farming income.
Severance Payment for tax purposes. Sales Proceeds 30 000 • Self Employed individuals also declare their income using this
• Cash and non – cash benefits � The above limitations are not applicable to other farming activities Less: Cost of acquisition 5 000 type of return.
like dairy farming, poultry, horticulture etc.
25 000
RENTAL INCOME � Expenses that relate to farming income will be allowed for deduction HOW DO I KNOW THAT I HAVE BEEN OVER OR UNDER
before tax e.g. drilling boreholes, wages for farm help etc Less: 25% x 25 000 6 250 TAXED?
This is Income from renting out property. For tax purposes a person
involved in renting property is considered to be in business where by Chargeable disposal gain 18 750 Your employer will give you a form ITW8, tax certificate which shows
expenses can be deducted. The following are allowed as an expense the total employment income and the tax charged. As an individual
before tax from the rental income; Mortgage Interest, rates, repairs to PROPERTY DISPOSAL INCOME FROM FOREIGN INVESTMENTS you can call BURS, or use the BURS website to check whether the tax
the property etc. Income from any disposal of property is subject to tax. This property This is income from investments outside Botswana. Therefore the charged is correct. This will then indicate whether or not a return should
includes income is deemed to be income from Botswana. Any citizen of Botswana be submitted.
� Immovable Property e.g. buildings investing outside has to declare income from foreign investments
� Movable Property e.g. shares through an individual return.