BURS has provided further detail on the application of the Income Tax Act, 2026 through the Income Tax Regulations and revised Tax Tables and Guidance Notes for Employees' Income. We have therefore updated our Botswana Employment Income Guide to incorporate these additional requirements and provide greater clarity on their application. The employment income rules and tax rates communicated in the original guide remain unchanged.
No changes to statutory payroll calculations

• Employment income rules and tax rates remain unchanged from the original guidance
• This update provides additional detail and clarity on existing requirements

What is changing?
Approved retirement fund contributions

• Tax deductions for qualifying contributions to an approved retirement fund under section 28 are now clarified
• Tax deductions are subject to applicable statutory conditions and limits.

Commissioner General's direction requirement

• A direction from the Commissioner General must be obtained before making certain termination-related and retirement lump-sum payments.
• Approved service gratuities
• Prescribed qualifying requirements for approved service gratuities are now detailed in the updated guidance.

Non-cash benefits

• Valuation and treatment of specified non-cash benefits are now clarified.

Official source

• Click here to access the official publication: https://www.burs.org.bw/index.php/tax/tax-laws-2026?download=954:income-tax-act-amendment-2026