What You Need to Know About Botswana Corporate Tax

Botswana recently raised its standard corporate tax rate from 22% to 23.5% for the 2025/2026 tax year, but it still remains one of the most competitive rates on the continent. Approved manufacturers can qualify for a rate as low as 15% under a Development Approval Order, and IFSC companies enjoy preferential treatment as well. This post explains how to calculate your liability, make quarterly instalment payments, and file on time with BURS.

1. What is Corporate Tax?

Corporate tax in Botswana is the income tax charged on the profits of companies operating in the country. The standard rate has increased to 23.5% for the 2025/2026 tax year (up from 22%). Manufacturing companies operating within an approved Development Approval Order may qualify for a reduced rate of 15%. The Botswana Unified Revenue Service (BURS) administers corporate tax.

2. Who does it apply to?

This usually applies to:

Companies incorporated in Botswana
Branches of foreign companies operating in Botswana
Non-resident companies earning income from Botswana sources
International Financial Services Centre (IFSC) companies (at a reduced rate)
Manufacturing companies with approved status

3. Why does it matter?

Understanding corporate tax helps you:

Stay compliant with tax laws
Avoid penalties and late fees
Keep proper records
File and pay correctly
Plan your cash flow better

4. How does it work?

Here's the basic process:

Register your company with BURS and obtain a TIN
Maintain proper books of account throughout the financial year
Calculate taxable income (gross revenue minus allowable deductions and capital allowances)
Pay estimated tax in quarterly instalments during the year (if liability exceeds BWP 50,000)
File your annual income tax return within 4 months of your financial year-end
Pay any balance of tax due with the return
BURS may issue an assessment based on your filing

5. What forms are involved?

Annual Income Tax Return - Filed with BURS for corporate income tax
Quarterly Instalment Payment Form - For estimated tax payments during the year
Financial Statements - Audited accounts submitted with the return
Tax Computation Schedule - Detailed calculation of taxable income

6. What information do you need?

Before handling corporate tax, make sure you have:

Your company's TIN
BURS online portal login credentials
Audited financial statements
Schedule of capital allowances
Details of all income sources
Records of withholding tax deducted at source
Prior year tax assessments
Transfer pricing documentation (for related-party transactions)

7. Important deadlines

Filing frequency: Annual return
Payment deadline: Quarterly instalments for companies with estimated tax above BWP 50,000. Instalments are due within 3, 6, 9, and 12 months of the start of the financial year. Companies with liability below BWP 50,000 pay in full with the return.
Year-end requirements: File annual return within 4 months of the financial year-end

8. Common mistakes to avoid

Not applying the new 23.5% rate for the 2025/2026 year
Missing quarterly instalment deadlines (applies when estimated tax exceeds BWP 50,000)
Not claiming all available capital allowances
Failing to apply for the reduced manufacturing rate when eligible
Overlooking withholding tax credits when computing final liability
Missing the 4-month filing deadline for the annual return
Not maintaining transfer pricing documentation for cross-border transactions

9. Simple example

Your company earns BWP 3,000,000 in revenue and has BWP 2,000,000 in allowable expenses.

Taxable income: BWP 3,000,000 - BWP 2,000,000 = BWP 1,000,000
Corporate tax at 23.5%: BWP 1,000,000 x 23.5% = BWP 235,000

Since the estimated tax exceeds BWP 50,000, you pay in quarterly instalments:

Q1 (3 months): BWP 235,000 / 4 = BWP 58,750
Q2 (6 months): BWP 58,750
Q3 (9 months): BWP 58,750
Q4 (12 months): BWP 58,750

Any balance is settled when filing the annual return.

10. FAQ

Q: What is the corporate tax rate in Botswana? A: The standard rate is 23.5% for the 2025/2026 tax year (increased from 22%).

Q: Are there reduced rates? A: Yes. Approved manufacturing companies can benefit from a rate of 15%. International Financial Services Centre (IFSC) companies also enjoy preferential rates.

Q: When do I pay quarterly instalments? A: If your estimated annual tax liability exceeds BWP 50,000, you must pay in four equal quarterly instalments. If it is BWP 50,000 or less, you pay in full when filing the return.

Q: Can I carry forward losses? A: Yes. Tax losses can be carried forward to offset against future taxable income, subject to certain time limitations.

Q: What is the tax year in Botswana? A: The tax year runs from 1 July to 30 June, but companies can have different financial year-ends.

11. Final takeaway

Botswana's corporate tax rate is now 23.5%, and paying quarterly instalments while filing your annual return within 4 months of year-end keeps your business compliant with BURS.

Caption

What you need to know about Botswana corporate tax: Pay 23.5% on taxable income, make quarterly instalment payments if your liability exceeds BWP 50,000, and file your annual return within 4 months of year-end.

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