Income tax on rent, worked example, in Botswana

Taxation Researcher | July 06, 2019

Non-resident couple´s rental income1
Monthly Rental Income2 €1,500 €6,000 €12,000
Annual Rental Income 18,000 72,000 144,000
Less Exbenses3 25% 4,500 18,000 36,00
= Taxable Income 13,500 54,000 108,000
Income Tax4
Up to BWP72,000 5.00% 360 360 360
BWP72,000 - BWP108,000 12.50% 113 450 450
BWP108,000 - BWP144,000 18.75% - 675 675
Over BWP144,000 25.00% - 3,150 9,900
Annual Income Tax Due 495 9,270 22,770
Tax Due as % of Gross Income 2.75% 12.88% 15.81%
Thanks to:
AGN Dobson & Co.

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 November 11, 2015.

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 11.00 BWP

3 Estimated values. In reality, expenditure must be necessarily incurred and properly documented.

4 Rental income earned by nonresident individuals is taxed at progressive rates.

INCOME TAX

TAXABLE INCOME (US$) TAX RATE
Up to72,000(US$6,545) 5.00%
72,000 -108,000(US$9,818) 12.50%
108,000 -144,000(US$ 13,091) 18.75%
Over 144,000(US$ 13,091) 25.00%
 

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