Botswana's Minister of Finance tabled four Tax Amendment Bills before Parliament on 15 December 2025, marking the country's most significant tax overhaul in years — raising corporate and personal tax rates, broadening the VAT net, tightening customs controls, and standardising tax administration across the board.
Botswana’s Minister of Finance has tabled the 2025 Tax Amendment Bills before Parliament on 15 December 2025. The Bills include the Income Tax Bill (2025), Value Added Tax Bill (2025), the Customs Amendment Bill (2025), and the Tax Administration Bill (2025).
The bills are aimed at consolidating, modernising, and harmonising Botswana’s tax legislation, as well as its administrative and enforcement frameworks, and are currently awaiting parliamentary approval and assent.
The Income Tax Bill (2025)
The proposed Income Tax Bill replaces the outdated Cap 52:01 Act and introduces several notable changes. These include:
- Corporate tax: The new corporate taxes are:
- For IFSC (international financial services centres) companies, the applicable tax rate is 17.5% on taxable income arising from approved financial operations, while all other taxable income is taxed at 24.5%.
- Mutual associations are subject to a lower rate of 5%, and all other companies are taxed at 24.5%.
- Non-approved funds are also taxed at 24.5%. For trustees, the rates vary depending on the nature of the trust — during the first three years of administering a deceased estate, the standard resident individual rates apply, whereas all other trusts are subject to a flat rate of 25%.
- Personal income tax: A new personal income tax bracket will tax earnings between BWP 156,000 and BWP 400,000 at 25%, with anything above BWP 400,000 taxed at 27.5%.
- New measures include a 3% tax on international transport operators loading goods or passengers in Botswana.
Value Added Tax Bill (2025)
- VAT registration rules are being eased, allowing businesses in sectors like mining and manufacturing to register before reaching the current sales threshold.
- Accommodation is removed from the definition of entertainment, making hotel VAT deductible.
- A new reverse VAT mechanism will apply when services are imported from abroad — including by previously exempt entities such as schools, churches, and NGOs.
- Tech companies like Google, Netflix, and Facebook will also be required to account for VAT on revenue earned from Botswana residents.
Tax Administration Bill (2025)
The Tax Administration Bill does not introduce new taxes but standardises how all BURS-administered taxes are managed — covering payments, assessments, and objections. It also makes registration mandatory for anyone providing tax advisory or representation services.
Customs (Amendment) Bill (2025)
The Customs Act amendment targets four broad areas: closing loopholes, improving compliance, aligning with international standards, and strengthening enforcement.
Key changes include:
- Blocking prohibited goods from using the de minimis exemption, requiring all border crossers — including pedestrians and cyclists — to declare goods, and clarifying that aircraft operators are responsible for departure reporting.
- New provisions address Special Economic Zones, in-transit passengers, anti-dumping duties, and Rules of Origin. Customs valuation methods are also formalised.
- A revised penalty framework introduces a clear menu of offences, giving the Commissioner General authority to resolve violations administratively before resorting to criminal sanctions.
