Bots Income Tax Calculator

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Company and period

Company name

Tax status

Accounting period start Accounting period end

Year of assessment is labelled by the period-end year. Periods beginning before 1 July 2026 are taxed under Cap 52:01, later ones under the 2026 Act (reg. 51(10)).

Accounting profit

Profit / (loss) before tax per financial statements Accounting depreciation & amortisation add back

Deductions not allowable s.38 · old s.50

Amounts expensed in the income statement that the Act disallows. Each is added back. Old s.50 (Cap 52:01) covered (a) domestic or private expenses, (b) amounts not wholly, exclusively and necessarily laid out to produce assessable income, (c) capital withdrawn or capital expenditure, (d) and (e) Botswana or foreign income tax, and (f) non-approved funds. Items (g) to (j), 38(2) and 38(3) are new in the 2026 Act.

Domestic or private expenditure 38(1)(a) · old 50(a) Not incurred to derive gross income 38(1)(b) · old 50(b)

Dividends, distributions, capital withdrawn 38(1)(c) · old 50(c) Capital expenditure expensed 38(1)(d) · old 50(c)

Income tax / CGT, tax penalties & interest 38(1)(e) · old 50(d),(e) Contributions to non-approved fund 38(1)(f) · old 50(f)

Reserves, provisions, amounts capitalised 38(1)(g) Recoverable under insurance / indemnity 38(1)(h)

Fines and penalties for breaking a law 38(1)(i) Bribes and inducements to officials 38(1)(j)

Employer contributions, non-approved fund 38(1)(k) · old 50(f) Purchases without e-invoice 38(2)

Expenses where withheld tax not yet paid to BURS 38(3) 38(3) amounts become deductible in the year the withheld tax is paid.

Entertainment & donations s.35 · s.34

Entertainment expensed s.35(1) …of which fully deductible s.35(2)

50% of ordinary entertainment is allowed. Staff benefits and core-business customer entertainment stay 100% deductible.

Donations expensed s.34 …of which to qualifying beneficiaries s.34(1)

Qualifying: non-profit organisations, Government health facilities, approved health institutions, prescribed beneficiaries, emergency appeals. Allowed only if total donations reach P1,000, and capped at 20% of taxable income before the donation.

Interest limitation s.36 · s.90

Interest expense in profit & loss Interest income in profit & loss

Disallowed interest brought forward s.36 Tax EBITDA override (blank = estimate)

Cap does not apply: gross income ≤ P10 million, bank or insurer, variable rate loan stock company, IFSC, s.53 small business or s.90 licensee Deductible interest is capped at interest income plus 30% of tax EBITDA. Excess carries forward up to 5 years.

Tax allowances & special deductions s.31 · s.39–42

Use the capital allowances register (ITA 201 / ITA 202) below the computation

Tax depreciation / annual allowances s.39–41 Cost of new industrial buildings this year s.42 · 25%

Approved training expenditure s.31 · old s.44 · 200% Already expensed at 100%, so a further 100% is deducted. Not available where training costs are reimbursable.

Income classes & exempt income s.24 · s.26

Exempt income in profit & loss s.24 · Sch. 2 Includes dividends and interest that already suffered final withholding tax.

Investment income in profit & loss s.26(4) Expenses relating to investment income

Taxable rent, interest and other passive income not already in exempt income. Investment and business income are separate classes: a business loss cannot reduce investment income, and excess investment deductions are lost.

Assessed business losses b/f s.37 · s.70 · old s.46

Year of assessment	Loss incurred (P)

Enter unused balances still carried forward. Each loss is usable for 5 years after the year it arose, oldest first. Temporary discontinuance does not stop the clock. Debt forgiven or compromised by creditors s.37(4) More than 50% of the company's beneficial ownership changed after the loss years (s.70(1))

The same business has been carried on in every year since the loss year (s.70(1)(a)) No new business or investment taken on mainly to use the losses (s.70(1)(b)) BURS must be notified within 14 days of the ownership change (s.70(2)).

Self-assessment tax (SAT) instalments s.127

Instalment method Enter each quarter's estimate of full-year taxable income. Under equal instalments only the Q1 estimate counts. Leave "Paid" blank if you paid exactly what was required.

Quarter	Estimated taxable income	Paid
Q1
Q2
Q3
Q4

Deferred tax & tax reconciliation IAS 12

Year-end balances from the statement of financial position. Losses and disallowed interest carried forward come from the computation.

Property, plant & equipment: carrying amount PPE: tax written-down value

Right-of-use assets IFRS 16 Lease liabilities IFRS 16

Provisions & accruals not yet deductible Other deductible temporary differences

Other taxable temporary differences Recognise a deferred tax asset on assessed losses (future taxable profit is probable) Recognise a deferred tax asset on disallowed interest carried forward

Deferred tax rate on reversal (%) Prior-year current tax under / (over) provision

Opening deferred tax: asset / (liability) Rate used for opening balance (%)

Enter a liability in brackets or with a minus sign. The opening balance is remeasured to the new rate, and the effect is shown separately.

Credits and distributions

Creditable withholding tax suffered Dividend to declare (10% WHT)

Tax computation

Assessed loss memorandum s.37

YA	Brought fwd	Used	Carried fwd	Status

SAT schedule s.127

Instalment	Due	Est. taxable income	Est. tax	Cumulative due	Required	Paid	Short / (over)

Deferred tax IAS 12

Item	Carrying amount	Tax base	Temporary difference	DT asset / (liability)

Tax expense and rate reconciliation IAS 12.81(c)

Item	P	% of PBT

Interest memorandum s.36

Final SAT balance due–

Effective rate on PBT–

Instalments vs actual tax–

Roll forward saves this year, then starts the next one. Unused losses (with their original years, so the 5-year limit keeps running), disallowed interest and closing deferred tax carry across; current-year figures reset to zero.

Capital allowances register

Asset	Class and rate	Tax year first used	Months used in first year	Cost (P)	Passenger car	Allowances b/f (override)	Disposal value (if sold)	Roll over charge	Allowable cost	Initial	Annual	Bal. allowance	Bal. charge	Tax value c/f
Total

Passenger car cost limit (P) Diminishing value pools for classes 1–3 (s.39(4), irrevocable) Use register tax value as the PPE tax base for deferred tax

Diminishing value pools s.41

Class 1 pool: net book value b/f Class 2 pool: net book value b/f

Class 3 pool: net book value b/f

Pool	NBV b/f	+50% additions this year	+50% additions last year	− Disposal proceeds	Rate	Depreciation	Included in income	NBV c/f

Summary by class ITA 201 / 202 summary lines

Class	Cost held b/f	Additions	Disposals	Cost held c/f	Allowances b/f	This year	Bal. allowance	Bal. charge	Unabsorbed c/f

Example figures loaded: replace them with yours

Employee

Residency Computation

Basic salary Bonus, commission, overtime

Car allowance (cash) Fuel allowance (cash)

Housing allowance (cash) Other cash allowances

Cash allowances are taxed in full as employment income.

Taxable benefits s.58 non-cash

Housing provided by employer Furniture and furnishings in the home

Motor vehicle & fuel Regs · vehicle

Company car: acquisition cost, or market value if leased Months available for private use

Fuel paid for private use Maintenance, insurance, licence (private share)

Tax fuel and running costs separately as well. Leave unticked: under Reg. 24(2) the 10% motor vehicle benefit already includes running costs paid for private use. Fuel card paid by employer (no company car)

Other non-cash benefits s.16(1)(e) · s.58

School fees paid or reimbursed Utilities: electricity, water, phone, internet

Domestic staff and security services Club and professional subscriptions

Insurance premiums paid for you Debt waived by employer

Professional subscriptions your job requires may not be a personal benefit. Check your employer's treatment.

Airtime, data and phone allowance in kind Meals, travel and other residual benefits

One-off or irregular benefit (e.g. a gift) Disregarded if given infrequently or irregularly and worth P1,300 or less (Reg. 15(4)). Enter each such benefit's value; larger amounts are taxed in full.

Low-interest loan from employer Regs · interest

Average loan balance during the year

Interest rate you pay (%) Bank of Botswana MoPR on 1 July (%)

Benefit = balance × (MoPR − your rate). The rate is the Bank of Botswana MoPR on 1 July of the tax year (Reg. 26(5)): 5.5% for 2026/27. Interest is worked on the employer's method, or the daily balance (Reg. 26(3)).

Deductions s.28(5)

Own contributions to approved pension fund Same period as salary. Capped at 15% of taxable income (applied here to income before the deduction).

PAYE computation

Tax year 1 Jul 2026 – 30 Jun 2027

PAYE–

Take-home cash–

Effective / marginal–

Employees–

Gross taxable pay–

PAYE to remit–

Net cash pay–

Pension deducted–

Due to BURS–

Monthly PAYE payroll

Payroll month

Upload Excel / CSV Replace employees on upload

PAYE uses the BURS monthly table (annual bands ÷ 12) for this month only. Taxable benefits are this month's value (work them out on the Individual tab if needed). Employee pension is capped at 15% of the month's gross taxable pay (s.28(5)). Remit PAYE within 14 days after month-end (s.138).

Payments–

Gross paid–

WHT to remit–

Saved by treaties–

Gross-up cost borne–

Reverse-charge VAT–

Withholding tax register

s.131–139 · remit by the 14th of the following month

Date vendor paid	Vendor	Vendor residence	Category	Amount (P)	Contract terms	Treaty claim	Rate	Gross (P)	WHT (P)	Net paid (P)	Reverse-charge VAT	Basis
Total

Upload Excel / CSV Replace register on upload

Gross-up and reverse-charge VAT VAT Act 2026

We are VAT-registered, so reverse-charge VAT applies to imported services Share of VAT claimable as input tax (%)

"Net agreed" means the vendor must receive the amount entered: gross = net ÷ (1 − WHT rate), and the extra WHT is your cost. Reverse-charge VAT at 14% is worked on the gross value of the supply and is ticked by default for non-resident management, consultancy, royalty, entertainment and commission payments.

Remittance schedule s.138

Month paid	WHT due to BURS	Payments	WHT	Reverse-charge VAT

By category

Category	Gross	WHT

Domestic rates Sch.1

Payment	Resident	Non-resident	Threshold

Treaty (DTA) rates, non-resident recipients old s.53 · DTA orders

Country	Dividends	Interest	Royalties	Mgmt & consultancy

Where two rates are shown, the lower one applies to a qualifying shareholding (usually 25% or more; 10% for the UAE), or for some royalties to equipment rentals. Choose "Treaty, reduced rate" for those. The treaty rate applies only with a certificate of tax residence from the vendor.

Penalties and interest

Total penalties & interest–

Interest–

Total to settle–

Per the Tax Administration Act 2026 (Act No. 14 of 2026) and its Regulations (S.I. 90 of 2026): s.101 late filing, the greater of P100 a day (max P20,000) or 10% of unpaid tax a month or part, for income tax; P50 a day (max P5,000) or 10% a month for VAT; P50 a day (max P5,000) for other documents. s.102 late payment, the greater of P50 a day or 10% of the tax a month or part. s.107 withholding tax withheld but not remitted, the greater of P500 a day or 10% of the WHT payable for the period of default; borne personally by the withholding agent. In each case the fixed amount can't exceed the tax payable. Reg. 21 interest, 1.5% a month or part, simple. Reg. 33 no late-payment penalty for 12 months from 1 July 2026; interest still runs. The waiver refers to the late payment penalty (s.102); whether it also covers s.107 is not stated. s.75 a due date on a weekend or public holiday moves to the next business day.

Rates. Companies under the Income Tax Act 2026: 24.5% (resident and non-resident), IFSC 15% on approved operations and 24.5% on other income, mutual associations 5%. Under Cap 52:01: resident 22%, non-resident 30%. Which Act applies depends on when the accounting period began: before 1 July 2026, Cap 52:01 and its rate; on or after, the 2026 Act (Income Tax Regulations 2026, reg. 51(10); ITA s.45(7), s.144(a)). An accounting year of 1 March 2026 – 28 February 2027 is therefore taxed under Cap 52:01, with no split by days. Individuals: tax-free to P48,000 (residents), then 5%, 12.5%, 18.75%, 25%, and 27.5% above P400,000.

SAT. Where tax exceeds P50,000, estimated tax is paid in four instalments due 3, 6, 9 and 12 months after the start of the accounting year. The final balance and return are due 4 months after year-end. Under the Tax Administration Act 2026 s.106, if actual tax exceeds instalments paid by more than 25% of actual tax, a penalty of 10% of the shortfall × 120% applies. That is our reading of wording that could also mean 10% of (actual tax − 120% of instalments), so confirm with BURS. Late payment interest is 1.5% a month or part (Reg. 21). Regulation 33 waives late payment penalties for 12 months from 1 July 2026.

Section references follow the Income Tax Bill No. 36 of 2025, enacted as the Income Tax Act, 2026. Confirm numbering against the gazetted Act. "Old s." refers to the repealed Income Tax Act (Cap 52:01), which still applies to periods before 1 July 2026: s.50 deductions not allowable, s.46 assessed losses, s.44 training.

Limits. Planning estimate, not a filed return. Applying losses before donations, and treating interest expense as business expenditure are assumptions. Not modelled: mining ring-fencing (s.84), farming (s.75–79), s.53 small business regime, the detailed s.70 ownership test, development approval orders (s.94) and the domestic minimum top-up tax.

IAS 12. Deferred tax uses the balance-sheet approach at the rate expected on reversal (24.5%). The opening balance is remeasured from the rate it was booked at, and the effect is shown in the reconciliation. A balancing line appears only when the inputs don't tie, which usually points to an opening balance to check.

Withholding. Domestic rates per Schedule 1 of the 2026 Act. Treaty rates follow the company's rate schedule (botswana_wht_treaty_rates.xlsx, 24 countries). Only the 19 treaties on BURS's Bilateral Agreements page are applied; Belgium, Kenya, Malawi, Malta and Mozambique get the domestic rate until BURS confirms they are in force. Where the schedule differs from the treaty text downloaded from BURS (14 October 2026), the rate table shows the text rate beside it and each register row is flagged. France, Mauritius, Namibia, Russia, Seychelles, Sweden and Zambia cover technical fees only for services performed outside Botswana. Barbados (technical fees) and Sweden (dividends, interest, royalties) have most-favoured-nation clauses. In the Botswana–France DTA, for example, caps management and consultancy fees at 7.5% against the domestic 15%. A treaty rate needs the vendor's certificate of tax residence. Thresholds (s.131–133) are flagged, not applied automatically.

Sources: Income Tax Bill No. 36 of 2025 · Andersen tax alert, July 2026 · KPMG, July 2026 · Cap 52:01 arrangement of sections

Bots Income Tax Calculator

Tax computation

Assessed loss memorandum s.37

SAT schedule s.127

Deferred tax IAS 12

Tax expense and rate reconciliation IAS 12.81(c)

Interest memorandum s.36

Capital allowances register

Diminishing value pools s.41

Summary by class ITA 201 / 202 summary lines

PAYE computation

Monthly PAYE payroll

Withholding tax register

Gross-up and reverse-charge VAT VAT Act 2026

Remittance schedule s.138

By category

Domestic rates Sch.1

Treaty (DTA) rates, non-resident recipients old s.53 · DTA orders

Penalties and interest

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