Botswana: Legislation including increased corporate tax rate, DMTT, and VAT on remote digital services enacted
Effective July 1, 2026
july 9, 2026
The government of Botswana, effective July 1, 2026, has repealed and re-enacted, with amendments, its income tax and VAT laws. Additionally, a new tax administration law became effective to harmonize the administrative and procedural rules for both taxes, and a customs amendment law became effective to introduce new rules and modify existing customs provisions.
Key developments include:
- An increase in the corporate tax rate from 22% to 24.5% and a reduction of the non-resident corporate tax rate from 30% to 24.5%
- Introduction of a 10% withholding tax on repatriated profits for nonresidents
- Introduction of a domestic minimum top-up tax (DMTT) consistent with the terms of BEPS Pillar Two
- For individuals, the introduction of a top marginal tax rate of 27.5% for those earning above BWP P400,000 per annum (BWP P33,333 monthly)
- Harmonization of the record-keeping period to eight years for all tax types
- Introduction of VAT on digital or remote services provided by non-residents and the extension of the input VAT claim period from four months to 12 months
Read a July 2026 report prepared by the KPMG member firm in Botswana