Botswana: Worked Example of Tax on Rent

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Tax Example: Rent

Non-resident couple's joint monthly rental income1		US$1,500	US$6,000	US$12,000
Annual Rental Income		18,000	72,000	144,000
Less Costs2		(3,000)	(4,500)	(7,000)
= Taxable Income		15,000	67,500	137,000
Income Tax Rates3
Up to BWP60,000	5%	375	485	485
BWP60,000 – BWP90,000	12.5%	-	606	606
BWP90,000 - BWP120,000	18.75%	-	908	908
Over BWP120,000	25%	-	3,590	12,278
Annual Income Tax Due		US$750	US$11,180	US$28,554
Tax Due as % of Gross Income		4.2%	15.5%	19.8%
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on October 2, 2006.

Notes

¹ The residential property is jointly owned by husband and wife, and is taxed separately. Before the Amendment Act of 1987, income of a married woman was treated as the income of the husband for tax purposes. After the 1987 Act, income of the married woman was taxed independently. Therefore in the table, 50% of income, costs and tax dues, are upon each spouse.

² Estimated costs. In reality, expenditure must be necessarily incurred and properly documented.

³ Applicable marginal tax rates for year 2006. Exchange rate as of 02 October 2006: US$1=BWP6.19.

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