Botswana: Legislative package of tax and customs reforms

The proposals would update the tax administration, income tax, value added tax, and customs frameworks.

The Ministry of Finance of Botswana has presented a legislative package of tax and customs reforms. The package is aimed at updating Botswana’s tax administration, income tax, VAT, and customs frameworks, and contains bills that are currently pending parliamentary approval and presidential assent.

The proposed developments include:

The Income Tax Bill (2025) would increase the corporate income tax rate from 22% to 24.5%, expand the scope of withholding tax, clarify income tax rates for different business structures, and revise the definition of permanent establishment.
The Value Added Tax Bill (2025) would update Botswana’s VAT framework as part of the broader tax reform package.
The Customs (Amendment) Bill (2025) would amend the existing customs framework.
The Tax Administration Bill would reform and enhance tax administration procedures, compliance, and enforcement mechanisms.

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

Cleverent Mhandu | cleverent.mhandu@kpmg.bw

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Botswana: Legislative package of tax and customs reforms

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