Understanding the Botswana Unified Revenue Service (BURS) tax tables is essential for both employers and employees to ensure accurate tax compliance. These tables outline the Pay As You Earn (PAYE) system, guiding the deduction of taxes from employee remuneration.
What is PAYE?
PAYE is a system where employers deduct tax from employees’ earnings, including salaries, wages, bonuses, allowances, commissions, pensions, lump-sum payments, and non-cash benefits such as school fees, utilities, motor vehicles, housing, and interest-free loans. This ensures that tax liabilities are settled progressively throughout the year, aligning with the Fifth Schedule of the Income Tax Act.
Employer Responsibilities
- Registration: Employers with staff must register for PAYE, extending their income tax registration to include this tax type. Upon registration, a Taxpayer Identification Number (TIN) for PAYE is issued.
- Annual Return Submission: Within 31 days after the tax year ends, employers must submit an annual return detailing total tax deducted using Form ITW10, a list of employees with PAYE details (Form ITW 10A), and individual tax certificates (Form ITW8) for each employee.
- Issuance of Tax Certificates: Employers must provide employees with their tax certificates within 31 days after the tax year concludes. If not received, employees should request it from their employer or notify the Commissioner General if it’s not furnished within an additional 15 days.
Tax Rates and Thresholds
As of the 2025/2026 fiscal year, the marginal tax rate for individuals has increased from 25% to 26.5%.
The tax rates are progressive, with the first P48,000 of annual income exempt from tax.
For detailed tax tables and guidance notes, employers and employees should consult the BURS Tax Downloads section.
Application for Variation on Employment Income
Employees can apply for variations in tax rates due to changes in employment, multiple income sources, private contributions to approved superannuation funds, or starting employment mid-year. Applications are made using Form ITW5, and if approved, the Commissioner General issues a Withholding Tax Directive (Form ITW 4A) to guide the employer on the correct deduction amount.