On 30 June 2021, the Minister of Finance and Economic Development published a press release announcing the implementation of the budget for 2021/22. The most important measures are:
-The general withholding tax rate increased from 7.5% to 10% on dividends paid to both resident and non-resident effective as from 1 July 2021;
-The tax on foreign dividends received by Botswana residents is reduced from 15% to 10% effective from 1 April 2021;
-Withholding tax applies to directors’ fees at a rate of 10% on payments to resident directors and 15% on payments to nonresident directors effective as from 1 July 2021;
-The withholding tax on dividends relating to mining operations is reduced from 15% to 10% effective as from 1 July 2021;
-The tax-free threshold for resident individual income tax (including employment tax) is increased from BWP 36,000 to BWP 48,000 per year (BWP 4,000 per month). The highest bracket taxed at 25% now starts at BWP 156,000 per year; and
-The standard VAT rate increased from 12% to 14% effective from 1 April 2021.
