Botswana introduced significant tax reforms effective 1 July 2026, bringing into effect a replacement Income Tax Act, 2026, a new Tax Administration Act, 2026, and updated regulations covering income tax, transfer pricing, VAT and tax administration.

For businesses, one of the most immediate changes is the increase in the ordinary company income-tax rate from 22% to 24.5%. The reforms also introduce wider reporting requirements for foreign income, capital gains and related-company transactions.

Individuals are also affected. While the tax bands up to P400,000 remain effectively unchanged, a new 27.5% rate now applies to the portion of taxable income above P400,000. Botswana residents may also need to pay closer attention to foreign income, overseas investments and capital gains.
Another important development is the introduction of electronic invoicing. Businesses will be required to issue electronic invoices through an approved electronic billing system, which is scheduled to take effect from 1 April 2027. Businesses should begin preparing their systems, records and internal processes ahead of the deadline.

The new framework also introduces stronger tax administration requirements and penalties, making accurate record keeping, timely registration and compliance increasingly important for both businesses and individuals.

For a more detailed breakdown of the changes, practical implications and areas to review, download the full DSS Botswana Tax Regulation Changes guide below.

[Download the full Botswana Tax Regulation Changes Guide here]

Please note: The DSS guide provides a high-level explanation of the published legislation and should not be treated as transaction-specific tax, accounting or legal advice. Professional advice should be obtained based on your individual circumstances.