Botswana Tax Rates
Botswana operates a progressive personal income tax system with rates up to 25%. The Botswana Unified Revenue Service (BURS) administers the system, featuring a 22% corporate tax rate, 14% VAT, and capital gains taxation. Botswana is one of Africa's most stable and well-governed economies, driven by diamond mining, tourism, and cattle ranching.
Top Income Tax Rate
25%
Corporate Tax Rate
22%
VAT / Sales Tax
14%
Capital Gains Tax
22%
Detailed Tax Information
Income Tax Brackets
Botswana levies progressive income tax with rates from 0% to 25%. The first BWP 48,000 annually is tax-free. Employment income is subject to PAYE. Non-residents are taxed at 25% on Botswana-sourced income. A withholding tax applies to certain payments to non-residents.
| Income Range | Tax Rate |
|---|---|
| P 0 – P 48K | 0% |
| P 48K – P 84K | 5% |
| P 84K – P 120K | 12.5% |
| P 120K – P 156K | 18.8% |
| P 156K+ | 25% |
Corporate Tax
The standard corporate tax rate is 22%. Companies approved under the International Financial Services Centre (IFSC) pay 15%. Mining companies pay 22% on non-diamond income and a formula-based rate for diamond mining. Manufacturing companies may qualify for reduced rates.
Standard Rate
22%
Capital Gains Tax
Capital gains are included in taxable income for companies (22%) and individuals (up to 25%). A primary residence exemption of up to BWP 1 million applies for individuals.
Rate
22%
VAT / Sales Tax
VAT is levied at 14% on most goods and services. Basic food items, healthcare, and education are exempt or zero-rated. Registration is mandatory for businesses with annual turnover exceeding BWP 1 million.
Standard Rate
14%
Cryptocurrency Tax
Botswana does not have specific cryptocurrency legislation. The Bank of Botswana has not issued formal guidance.
Tax Treaties
Botswana has approximately 14 double taxation agreements.
Treaty Network
14
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Botswana
See how much you could save by moving here from your current country.
+$21K
Tax in United States
$24K
24.4% effective
Tax in Botswana
$4K
3.8% effective
You Save
84.4%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
