Updated on: 2025/08/04 14:03 (UTC)
Overview
Botswana, which officially is known as the Republic of Botswana, is a parliamentary democracy located in southern Africa. Botswana is bordered to the west and north by Namibia, to the northeast by Zimbabwe, and to the south by South Africa. The country of Zambia shares a border of about 150 meters with Botswana in the northernmost part of Botswana, and this border is one of the shortest borders shared by two countries.
Botswana consists of 16 first-order administrative divisions, including 10 districts and six town councils. The districts of Botswana are Central, Chobe, Ghanzi, Kgalagadi, Kgatleng, Kweneng, North East, North West, South East, and Southern. The town councils are Francistown, Gaborone, Jwaneng, Lobatse, Selebi-Phikwe and Sowa Town.
The primary language used in Botswana is the Setswana (Tswana) language, although English is the primary spoken and written language used in governmental communications of Botswana and in business transactions that occur in the country. Among the languages used by at least 5% but less than 10% of Botswana’s population is Sekalanga (Kalanga). Among the languages used by at least 1% but less than 5% of Botswana’s population are Ndebele, Sembukushu, Sesarwa (Sarwa), and Zezuru.
Botswana’s currency is the pula.
Employers in Botswana are required to withhold for income tax from employee pay at the time of payment. Employers also must uphold compensation and benefits provisions in the labor law. Botswana has no social tax.
Foreign workers in Botswana generally are subject to the same tax and labor laws as Botswana nationals. Both resident and nonresident individuals only are liable for compensation and remuneration for services rendered in Botswana.
Botswana citizens working in the United States must comply with the appropriate visa requirements, labor and tax laws.
CURRENCY DETAILS
The currency of Botswana is the Botswanan pula (P), also known simply as the pula and sometimes written as Pula. The word pula in Setswana means blessed rain or blessings. The internationally recognized three-letter currency code for the pula is BWP. The standard plural form of pula is the same as its singular form, although the plural form pulas sometimes is used.
When an amount of pula is written using the currency symbol P, the symbol precedes the numerical value with no space between the numerical value and symbol.
One hundredth ( 1 ⁄ 100 ) of a pula is referred to as a thebe, with a standard plural form that is the same as its singular form, although the plural form thebes sometimes is used. The word thebe in Setswana means shield.
When amounts of pula are written in Botswanan dialects of English, the comma that in American and British dialects of English separates the thousands place from the hundreds place instead is rendered as a space.
TAXES
The federal government generally enacts laws relating to income tax.
The tax year in Botswana is July 1 to June 30.
Income Taxes
Income tax is administered by the Botswana Unified Revenue Service (BURS).
Coverage: Individuals are subject to income tax on all income received or accrued from an actual or deemed source in Botswana. An individual is considered a resident if they are physically present in Botswana for more than 183 days.
Employees: According to the Employment Act, an employee is any person who has entered into a contract of employment for his or her labor.
Rates and Thresholds: Tax rates are progressive, from 5% up to 25%. Residents earning annual income of less than P36,000 are exempt from paying taxes on income.
Botswana’s personal income tax rates and minimum and maximum amounts of annual income for each tax bracket for residents are as follows:| Range of Annual Income (Pula) | Income Tax Rate |
|---|---|
| Up to P36,000 | Zero |
| More than P36,000 and up to P72,000 | 5% of the annual salary exceeding P36,000 |
| More than P72,000 and up to P108,000 | P1,800 plus 12.5% of the annual salary exceeding P72,000 |
| More than P108,000 and up to P144,000 | P6,300 plus 18.75% of the annual salary exceeding P108,000 |
| More than P144,000 | P13,050 plus 25% of the annual salary exceeding P144,000 |
The progressive personal income tax brackets in effect for nonresidents are the same as those in effect for residents, except for nonresidents there is no bracket with a rate of zero and the rate of 5% is assessed on annual income up to P72,000.
Registration: Employers must register with the Commissioner General within 30 days after the end of the month in which employer status was established.
Taxable Amounts: Salaries, wages, commission, allowances, business income and capital gains are considered income and are taxable. Allowable deductions include contributions to an approved superannuation fund and professional subscriptions to organizations necessary to fulfill duties.
Withholding Methods: Employers are required to withhold income taxes for employees using the Pay-As-You-Earn (PAYE) system.
Returns and Remittance: Employers must remit withheld taxes to the tax authority and submit a monthly return, Form ITW 7A, within 15 days of the end of the month in which the remuneration was paid. BURS no longer accepts checks as a means of payment unless checks are bank certified or guaranteed. Employers are advised to use cash or electronic funds transfer. Employers must also complete and submit an annual return, Form ITW 10, due 31 days after the end of the tax year.
Employers must submit a certificate of tax withheld to the employee within 31 days after the end of the tax year to the Commissioner General.
Recordkeeping: Employers are required to keep records of each employee; however, there is no requirement for length of time.
Penalties: Individuals who fail to furnish a tax return are liable to pay interest at the rate of 2% per month on the amount of tax charged. Evasion of pay result in a fine of P4,000 and possible imprisonment for two years.
Social Taxes
There are no social taxes in Botswana.
Other Taxes
Botswana’s national government does not assess any taxes on employment income other than those covered in the Income Taxes and Social Taxes sections of this primer.
State/Jurisdiction Taxes
Taxes on employment income are not assessed by any of Botswana’s districts or local jurisdictions.
COMPENSATION AND BENEFITS
The Employment Act in Botswana covers minimum wage, overtime, hours of work, holidays, leave, wage payment, termination pay. The Worker’s Compensation Act covers employer obligations for workers’ compensation.
The Employment Act is administered by the Ministry of Employment, Labour Productivity, and Skills Development.
Coronavirus (Covid-19) Guidance: Employers, except in sectors listed by the government, may apply to the Botswana Unified Revenue Service for a wage-replacement subsidy for the wages of employees who are Botswanan citizens. The amount of the subsidy is 50% of an employee’s monthly wages, but ranges from P1,000 to P2,500 per employee per month from April to June 2020.
Minimum Wage
Minimum wages in Botswana vary by industry and are established by the Minimum Wages Advisory Board.
Effective since July 1, 2019, the minimum wage rates are as follows:
- P6.77 per hour for building, construction, exploration, and quarrying industries; wholesale distributive trade; manufacturing, service, and repair trades; hotel, catering, and entertainment trades; garage, motor trade, and road transport; and security guards employed by security companies;
- P6.01 per hour for the retail distribution industry;
- P1,000 per month for the domestic service sector; and
- P1,000 per month for the agricultural sector.
Effective from Nov. 1, 2017, to June 30, 2019, the minimum wage rates were as follows:
- P5.79 per hour for building, construction, exploration, and quarrying industries; wholesale distributive trade; manufacturing, service, and repair trades; hotel, catering, and entertainment trades; garage, motor trade, and road transport; and security guards employed by security companies;
- P5.14 per hour for the retail distribution industry;
- P4.89 per hour for watchmen employed in industries and trades that otherwise have a higher minimum wage rate;
- P3.21 per hour for the domestic service sector; and
- P700 per month for the agricultural sector.
Overtime
Employers are required to pay 1.5 times the normal wages for hours worked in excess of the ordinary daily working period. For rest days and public holidays, the rates are double the hourly wages.
Hours of Work
The maximum workweek is 48 hours, with the number of hours worked not exceeding eight hours per day. Sunday is the usual day of rest.
Holidays
Public holidays paid by the employer and specified yearly, are:
- Jan. 1: New Year’s Day
- Good Friday
- Easter Monday
- May 1: Labor Day
- President’s Day
- Mid-July: Public Holiday
- Sept. 30: Botswana Day
- Dec. 25: Christmas Day
Leave
Employers are required to grant employees a minimum of 15 paid days of leave per year.
Sick Leave: Employers are required to pay basic salary for at least 14 days of sick leave per year.
Maternity Leave: Female employees are entitled to maternity leave of 12 weeks (six weeks before and six weeks after birth). During that time, employers are required to pay no less than 25% of the employee’s basic pay.
Wage Payment
Wages should be paid before the third working day immediately after the last day of the wage period. Wages must be paid in legal tender into a bank account or by check. There are no requirements that employees be paid in pula.
Bonuses and Special Benefits
Botswana does not mandate employers to provide bonus payments to employees.
Termination Pay
Employers are required to give prior notice to termination. The minimum notice period is the same as the wage period, i.e. an employee that is paid monthly must be given a month’s notice.
Alternatively, employers may pay the amount that the employee would have received during the period of notice.
Employees with 60 or more months of employment are eligible to receive a severance benefit. This is calculated at the rate of one day’s basic pay for each month worked during the first 60 months and two day’s basic pay for each additional month of employment.
Workers’ Compensation
The Worker’s Compensation Act stipulates that employers must pay compensation to any employee who is incapacitated through a work-related injury or occupational disease. Employers are also required to take up an insurance policy to cover liability under the act.
Recordkeeping
Botswana’s compensation and benefit recordkeeping laws could not be confirmed.
FOREIGN WORKERSForeign workers are entitled to the same rights as Botswana citizens and generally are covered by the same tax and workplace laws.
Visas: Foreign workers must obtain a work permit in order to work in Botswana. They must submit an application along with a work contract. The completed application and fee for the work permit should be submitted to the Botswana Ministry of Labor and Home Affairs.
Taxes: Nonresidents are taxed slightly different from residents in that there is no exemption from tax on the first P36,000 per year which is taxed at 5%. Progressive tax rates of 5% to 25% apply.
Rates and Thresholds: Botswana’s personal income tax rates and minimum and maximum amounts of annual income for each tax bracket for non-resident foreign workers are as follows:
| Range of Annual Income (Pula) | Income Tax Rate |
|---|---|
| Up to P72,000 | 5% |
| More than P72,000 and up to P108,000 | P3,600 plus 12.5% of the annual salary exceeding P72,000 |
| More than P108,000 and up to P144,000 | P8,100 plus 18.75% of the annual salary exceeding P108,000 |
| More than P144,000 | P14,850 plus 25% of the annual salary exceeding P144,000 |
Wages/Payments: There are no particular requirements that employees be paid in pula.
WORKING IN THE UNITED STATES
Foreign workers from Botswana must meet general visa requirements and be certified to be employed in the U.S. General visa requirements for the U.S. are included in the separate
U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.
For tax purposes, Botswana citizens are subject to U.S. employment-based taxation on income earned in the U.S. unless they can claim an exemption under certain tax treaty provisions or they work under specific visa types that exempt earnings from taxes.
State and local taxation of Botswana workers also can apply, although some states within the U.S. recognize international tax treaties that can eliminate that income tax liability for foreign workers.
The U.S. labor laws apply to all workers employed and providing services in the country.
Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.
Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the
Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.
Income Taxes: Generally, nonresidents in the U.S. who are from Botswana and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends.
A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer. All nonresidents in the U.S. who are from Botswana and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c. Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the
Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.
An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the
Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.
Tax treaties: Botswana and the U.S. do not have a tax treaty.
Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.
Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the U.S.
Totalization Agreements: Botswana and the U.S. have not entered into a totalization agreement.
Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.
There are no particular requirements that employees be paid in U.S. dollars.
TREATY ARRANGEMENTS
Botswana has bilateral income tax treaties in effect with Barbados, China, France, India, Ireland, Lesotho, Malta, Mauritius, Russia, Seychelles, South Africa, Sweden, the United Kingdom, Zambia, and Zimbabwe. Botswana’s bilateral income tax treaty with the Czech Republic takes effect July 1, 2021, in Botswana, and Jan. 1, 2021, in the Czech Republic.
Botswana does not have any totalization agreements for social tax purposes in force.
RESOURCES
All resources in English unless otherwise noted.
General
U.S. State Department: U.S. Relations With Botswana
U.S. Central Intelligence Agency:
- The World Factbook: Botswana
- The World Factbook: Languages
U.S. Department of Commerce: Export.gov: Botswana - Business Travel
Government of Botswana
Currency Details
International Organization for Standardization: Currency Codes - ISO 4217
Unicode Consortium: Currency Symbols
United Nations: United Nations Terminology Database: Botswana
Taxes
Botswana Unified Revenue Service
Botswana Income Tax Act
Compensation and Benefits
Ministry of Employment, Labour Productivity, and Skills Development: Minimum Wage Update Effective July 1, 2019
Embassy of the United States in Botswana
Botswana Employment Act
Foreign Workers
Ministry of Employment, Labour Productivity, and Skills Development
Employment of Non-Citizens Act
Working in the United States
U.S. Department of Labor:
- Foreign Labor Certification
- Hiring Foreign Workers
U.S. Internal Revenue Service:
- IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
- IRS Publication 15, Circular E, Employer’s Tax Guide
- IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS Publication 901, U.S. Tax Treaties