The Honourable Minister of Finance and Economic Development, Dr. Thapelo Matsheka presented the 2021/2022 Budget Proposals to the National Assembly on the 1st of February 2021. The Minister announced tax changes to raise the zero-rate threshold for individual taxpayers from P36 000.00 to P48 000.00 with effect from 1 July 2021.
Click here for the Budget Speech.
Click here for the Income Tax Act.
Botswana Personal Income Tax Tables 2021
The Personal Income Tax Tables have been implemented effective 1 July 2021.
Personal Income Tax Brackets for Residents
| Lower Income Limit | Upper Income Limit | Income Threshold | Marginal Rate | Tax on Threshold |
| 0.00 | 48 000.00 | 0.00 | 0.00% | 0.00 |
| 48 000.00 | 84 000.00 | 48 000.00 | 5.00% | 0.00 |
| 84 000.00 | 120 000.00 | 84 000.00 | 12.50% | 1 800.00 |
| 120 000.00 | 156 000.00 | 120 000.00 | 18.75% | 6 300.00 |
| 156 000.00 | 999 999 9999.00 | 156 000.00 | 25.00% | 13 050.00 |
Personal Income Tax Brackets for Non-Residents
| Lower Income Limit | Upper Income Limit | Income Threshold | Marginal Rate | Tax on Threshold |
| 0.00 | 84 000.00 | 0.00 | 5.00% | 0.00 |
| 84 000.00 | 120 000.00 | 84 000.00 | 12.50% | 4 200.00 |
| 120 000.00 | 156 000.00 | 120 000.00 | 18.75% | 8 700.00 |
| 156 000.00 | 999 999 9999.00 | 156 000.00 | 25.00% | 15 450.00 |
Impact of Botswana Personal Income Tax Tables 2021 on payroll:
- These changes have been implemented on the system effective 01 July 2021.
- Customer payrolls wanting to apply the resident income tax tables should attach employees to the ‘Resident Employment’ tax status.
- Customer payrolls wanting to apply the non-resident income tax tables should attach employees to the ‘Non-Resident Employment’ tax status.
- No other Statutory changes have been announced.
Should you have any questions regarding this change, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected].
The PaySpace Team
