How is tax calculated in Botswana?

How is tax calculated in Botswana?

A non-resident is taxable on earned income in accordance with the PIT rates, but pays withholding tax (WHT) only at the rate of 15% for interest, commercial royalties, and management and consultancy fees, 10% for dividends, and 10% for entertainment fees, where such income is of Botswana origin.

How much is income tax in Botswana?


Taxable income bracket Tax rate on income in bracket
0 72,000 5.00% over BWP0
72,001 108,000 12.50% over BWP72,000
108,001 144,000 18.75% over BWP108,000
144,001 Over 25.00% over BWP144,000

What is the chargeable income?

Chargeable income, also known as taxable income, is your total annual income minus all the tax exemptions and tax reliefs you are entitled to.

What is allowable deduction in taxation?

An allowable tax deduction is the amount you paid for something which is connected with the work you do to earn your income.

How do u calculate taxable income?

Taxable income is calculated by adding up all sources of income, excluding nontaxable items, and subtracting credits and deductions.

What percentage is income tax?

There are seven tax brackets for most ordinary income for the 2021 tax year: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.

What’s included in taxable income?

Taxable income is more than just wages and salary. It includes bonuses, tips, unearned income, and investment income. Unearned income can be government benefits, spousal support payments, cancelled debts, disability payments, strike benefits, and lottery and gambling winnings.

How is income tax on salary calculated?

The year during which your income tax is calculated for the previous financial year is called the assessment year….Components for calculating the income tax.

Income Slab Tax Rate
2.5 lakhs – 5 lakhs 10% of exceeding amount
5 lakhs – 10 lakhs 20% of the exceeding amount
Above 10 lakhs 30% of the exceeding amount

Who needs to pay income tax?

Who Are The Tax Payers? Any Indian citizen aged below 60 years is liable to pay income tax if their income exceeds 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs. 3 lakhs, he/she will have to pay taxes to the government of India.