Top earners to pay 27.5% tax rate
Pauline Dikuelo | Tuesday July 14, 2026 10:47
In a move aimed at increasing domestic revenue collection and strengthening compliance, the tax agency last week announced that those earning more than P33,000 a month will face a new 27.5% personal income tax. This affects those who rake in more than P400,001 annually, replacing the current maximum rate of 25% for the country’s highest earners. The new bracket means taxpayers earning above the threshold will contribute a larger share of their income towards government revenue, while those earning between P156,001 and P400,000 annually will continue to be taxed at the existing 25%.
The reforms form part of a wider review of Botswana’s tax framework aimed at expanding the tax base, modernising tax administration and improving compliance amongst individuals and businesses. BURS Acting Commissioner Domestic Tax, Segametsi Radibe-Michael, revealed the amendments are intended to create a simpler, more efficient and internationally aligned tax system that supports economic growth while ensuring taxpayers meet their obligations. “The changes seek to broaden the tax base, strengthen compliance and address gaps within the current tax system,” she said in her address to the media.
The amendments to the Income Tax Act, Value Added Tax (VAT) Act and the new Tax Administration Act represent one of the most significant changes to Botswana’s tax regime in recent years. Once implemented, the revised structure will maintain the 25% rate for individuals earning between P156,001 and P400,000 annually, while introducing the new 27.5% bracket for those earning above P400,001. This translates to individuals earning above approximately P33,300 per month falling into the new higher tax category. The reforms also introduce changes affecting businesses, including an increase in corporate income tax from 22 to 24.5%.
On the other hand, the non-resident corporate tax rate has also been aligned at 24.5%. Other measures include the introduction of a three percent withholding tax on insurance premiums, the repeal of the four percent withholding tax on livestock sold for slaughter, registration of tax agents and the establishment of a Tax Tribunal to improve the resolution of tax disputes. BURS said the amendments are also aimed at addressing challenges such as base erosion and profit shifting, while removing inconsistencies in tax legislation and simplifying compliance processes for taxpayers.