Value-added tax (VAT)
VAT is imposed on taxable supplies and the importation of goods and certain services into Botswana. The standard VAT rate of 14% applies to all supplies that do not qualify for an exemption or are not zero-rated.
The VAT registration threshold is 1 million Botswana pula (BWP).
Vocational training levy (TRL)
TRL, although not an indirect tax per se, is a levy collected through the VAT system and is levied on all VAT-registered persons at a rate of 0.05% of annual turnover in excess of BWP 2 billion and 0.2% on annual turnover up to BWP 2 billion. There is an oil industry turnover rate of 0.05% on regulated petroleum products. However, quick-shop sales attract a 0.2% rate for such oil industry companies. The rate is applied to the turnover for the tax period.
Customs and excise duties
Customs and excise duties are charged on importation of goods (including currencies) into or exported out of Botswana. The import duties may also include anti-dumping and countervailing duties. No customs duties and excise duties are charged on trade between Botswana and South Africa, Lesotho, Namibia, and eSwatini, as these five countries constitute the Southern African Customs Union. In terms of the Botswana/Zimbabwe Trade Agreement, goods originating from either of the trading partners are exempted from payment of customs duties under the condition that the goods meet a minimum of 25% local content. Excise duty and local taxes, such as VAT, are due and payable where applicable.
Property taxes are levied by local authorities, generally based on property valuations.
Capital transfer tax (CTT)
CTT is levied on the donee upon the transfer (by way of inheritance or gratuitous disposal) of tangible or intangible, movable or immovable, property, at up to 12.5% for individuals and at 12.5% for companies.
Transfer duty (TD)
TD is levied on the purchaser of immovable property upon the transfer of such, whether by sale, gift, inheritance, or otherwise. TD is levied on all immovable freehold and leasehold property.
TD is levied at 5% of the value of immovable property for Botswana citizens on acquisitions over BWP 1.5 million. For non-citizens, the duty is payable on the purchase price or value of property up to BWP 2 million at the rate of 10% and on the purchase price or value of property in excess of BWP 2 million at the rate of 15%. Where VAT is payable on a transaction in respect of which duty is payable, the TD is waived.
There is no stamp duty in Botswana.
An employer with resident employees earning income above the taxable threshold and non-resident employees must deduct tax by applying the relevant tax rate and remit to the Botswana Unified Revenue Services (BURS) on a monthly basis before the 15th day of the succeeding month. Every employer is required to submit an annual return within 31 days after the end of the tax year on 30 June.
Social security contributions
There are no social security taxes or contributions in Botswana.