Grant Thornton advises on new tax changes :: Mmegi Online

Leading advisory, Grant Thornton, has urged businesses to review payroll systems, expatriate arrangements, employment contracts, benefit policies and supporting documentation to ensure taxable amounts are correctly identified, valued and reported, under the new income tax changes.

The Income Tax Act changes, which took effect on July 1, include a new top individual tax bracket, greater clarity on taxation and valuation of employee benefits and details on tax treatment of employees of international organisations, embassies, amongst others.

“The Act preserves Botswana’s progressive individual tax brackets but introduces a new top bracket and a higher marginal tax rate of 27.5% on annual income exceeding P400,000. “Employers should therefore ensure that Pay As You Earn is withheld from all taxable employment income, including taxable non-cash benefits, in the pay period in which the income is paid or the benefit is provided or made available,” a note from Grant Thornton reads.

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