Income Tax Faq
WHAT PERIOD IS A TAX YEAR?
A tax year runs from 1st July to 30th June of the succeeding year.
WHO SHOULD PAY TAX ON THEIR SALARY?
Any individual who earns more than P3,000 per month or P36,000 per annum is liable to pay tax using the applicable rates from the tax tables.
WHAT IS THE PERCENTAGE OF THE TAX CHARGE ON MY SALARY?
There is no one percentage charge for PAYE. The tax charge is determined using tax tables that BURS provides to your employer. There are different rates for different salary amounts.
WHAT IS THE PURPOSE OF THE ITW8 CERTIFICATE?
ITW8 is a certificate of ones earnings and tax per year.
IF MY ONLY SOURCE OF INCOME IS MY SALARY, DO I NEED TO REGISTER AND SUBMIT TAX RETURNS YEARLY?
YES. with effect from 1st July 2011 you would be required to register if your annual income exceed P3 000 per month or P36 000 per annum.
WHAT SHOULD I DO IF I SUSPECT THAT MY EMPLOYER IS DEDUCTING TAX FROM MY SALARY BUT IS NOT PAYING IT TO BURS?
In this type of situation the employee may inform BURS of his/ her suspicions and BURS will then take appropriate action which may include recommending the employer/company for tax audit.
WHICH OF MY EMPLOYEES SHOULD I FILL AN ITW8 FOR?
An ITW8 certificate should be filled out for each employee who earns a salary that is above P3000 per month or P36, 000 per annum. The employer should then give two copies to the employee without fail.
WHAT IS THE DUE DATE FOR PAYE AND OWHT?
The due date for PAYE and OWHT is 15th of every month following the month of deduction. After which the deductionamount will attract an interest charge for late payment of 2% per month or part of the month thereon.
IF I HAVE EMPLOYED A NON-RESIDENT PERSON FOR A PERIOD LESS THAN 183 DAYS OR 6 MONTHS, HOW SHOULD I TAX THEIR EARNINGS?
The tax tables provide tax rates for resident as well as non-resident employees. An employee would fall under the category of Resident if they have been working in Botswana for a continuous period of more than 183 days.
WHERE DO I GET REFUNDS ON MY SELF ASSESSED TAX OR ASSESSED TAX?
To get a refund for overpaid tax one has to fill a tax return and be assessed and gets a refund.
WHAT IS THE PROCEDURE IF I HAVE AN OBJECTION ON MY ASSESSMENT?
You may object to the assessment by way of writing within 60 days after the date of issue of the assessment, all objections should be addressed to the Commissioner General.
HOW LONG DOES IT TAKE FOR A TAX CLEARANCE CERTIFICATE (TCC) TO BE PROCESSED?
The normal time for a TCC to be processed and issued is 4 working days. This period can change if the taxpayer has some issues arising from processing of the TCC such as outstanding tax balances and outstanding tax returns. Anything outstanding has to settled before a TCC can be issued to a taxpayer.
WHAT INFORMATION MUST A TAXPAYER GIVE WHEN APPLYING FOR A TCC?
All that is needed of the taxpayer is for them to fill two copies of the TCC application, one to be date stamped and retained by BURS for processing and the other copy to be date stamped and given back to the taxpayer for reference.
WHAT IS THE DUE DATE FOR MY INCOME TAX RETURN?
As a company, you are given four months after the end of your financial year to submit your Income Tax return. As an individual you are given three months after the end of the tax year to make your submissions, i.e. by 30th September of every year.