Botswana: Increase in tax-exempt thresholds for pensions, gratuities and retrenchment packages

Income Tax Act (Cap. 52:01) amended with effect from 15 January 2024

Income Tax Act (Cap. 52:01) amended with effect from 15 January 2024

The Income Tax Act (Cap. 52:01) was amended with effect from 15 January 2024 to increase the exemption thresholds of pensions, annuities, bonuses, gratuities and payments in commutation of pension or annuity entitlements as listed below:

  • Approved service gratuity or severance pay—from 33.33% to 50%
  • Contractual bonuses or gratuity—from 33.33% to 50%
  • Statutory severance—from 33.33% to 50%
  • Retrenchment packages—from 33.33% to 50%
  • Payments in commutation of pension or annuity entitlements—from 33.33% to 50%.
  • Annual pensions or annuities—from P5,000 to P20,000 per year

The increase in the tax-exempt thresholds provides relief for taxpayers (especially senior citizens) as this increases their disposal incomes and offers a significant cushion against the high inflation experienced in recent years.

For more information, contact a KPMG tax professional in Botswana:

Leonard Muza |

Kenneth Sakonda |

Virginia Mutsago |

Onkarabile Charles |



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