New Botswana Tax Reforms 2026

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Regulatory Body- Botswana Unified Revenue Service (BURS)

The proposed 2025/2026 budget includes a major direct tax change that has an immediate effect, as part of a broader strategy to ensure fiscal sustainability by tapping into higher income brackets, which can contribute more substantially to national revenue without imposing undue strain on lower-income groups.

The proposed tax changes are as follows:

• 1.5% increase in company rates from 22% to 23.5%, a measure targeting larger corporations, to share a greater responsibility in supporting national development through increased tax contributions.
• 1.5% increase in marginal tax rates from individuals from 25% to 26.5%, a measure targeting top earners to share a greater responsibility in national revenue.

This adjustment is expected to impact the financial planning of companies and individuals earning higher amounts, necessitating strategic adjustments to accommodate the increased tax liability.

The table below outlines the applicable annual personal income tax bands and rates for individuals under the revised framework.

Taxable Income (BWP) Rate of Tax

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Botswana 2026 Tax Reforms FAQs

Q: Which regulatory body oversees these tax reforms?A: The Botswana Unified Revenue Service (BURS).

Q: What is the primary objective of these tax changes?A: The changes are part of a strategy to ensure fiscal sustainability by tapping into higher income brackets to contribute more to national revenue, without putting undue strain on lower-income groups.

Q: How is the company tax rate changing?A: There is a 1.5% increase in company rates, going from 22% to 23.5%. This measure targets larger corporations to share a greater responsibility in supporting national development.

Q: How is the individual income tax rate changing for top earners?A: There is a 1.5% increase in the top marginal tax rate for individuals, rising from 25% to 26.5%.

Q: What is the annual tax-free income threshold for individuals under the revised framework?A: Individuals with taxable income between P 0 and P 48,000 are subject to a 0% tax rate.

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