Income tax on rent, worked example, in Botswana
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| 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 BWP84,000 | 5.00% | 675 | 840 | 840 |
| BWP84,000 - BWP120,000 | 12.50% | - | 900 | 900 |
| BWP120,000 - BWP156,000 | 18.75% | - | 1,350 | 1,350 |
| Over BWP156,000 | 25.00% | - | 5,700 | 19,200 |
| Annual Income Tax Due | 1,350 | 17,580 | 44,580 | |
| Tax Due as % of Gross Income | 7.50% | 24.42% | 30.96% | |
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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 November 11, 2015.
Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 10.00 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 to84,000(US$8,400) | 5.00% |
| 84,000 -120,000(US$12,000) | 12.50% |
| 120,000 -156,000(US$ 15,600) | 18.75% |
| Over 156,000(US$ 15,600) | 25.00% |