Burs Tax returns

In this guide, we cover everything you need to know about BURS tax returns, including types of returns, filing deadlines, and penalties for late submissions.

Types of Tax Returns in Botswana

Taxpayers in Botswana must file tax returns based on their income sources, business activities, and employment status. BURS provides specific forms for different types of taxpayers, categorized as follows:

1. Employment, Business, and Investment Returns

Individuals and entities earning income from employment, business, or farming must complete the appropriate tax return form:

  • ITA20 – Employment income only.
  • ITA20B – Employment plus business income.
  • ITA20BF – Employment, business, and farming income.
  • ITA20F – Employment and/or farming income.
  • ITA21 – Partnership and trusts.
  • ITA22 SAT ITA22 – Company tax return (Self-Assessment Tax).
  • ITA25 – Charitable, religious, educational institutions, public trusts, and social/sporting associations.

2. Pay-As-You-Earn (PAYE) and Other Withholding Taxes

Employers and businesses that withhold taxes from payments made to employees or contractors must file withholding tax returns:

  • ITW10 (PAYE) – Annual withholding tax return for PAYE.
  • ITW10 (OWHT) ITW10A – Annual return for other withholding taxes (e.g., construction contracts, royalties, management fees, rent, entertainment, and commissions).

3. Value Added Tax (VAT) Returns

Businesses registered for VAT must file VAT returns according to their category:

  • VAT002.1 – Return for remittance of Value Added Tax.
  • Category A & B – Taxpayers with a turnover of less than P12 million.
  • Category C – Taxpayers with a turnover above P12 million.

Filing Deadlines for Tax Returns

The deadlines for submitting tax returns vary based on the type of taxpayer:

1. Individuals

  • Tax returns issued at the end of June must be submitted before the end of September.

2. Companies

  • Returns dispatched at the end of June must be filed before the end of October.
  • Companies with a financial year different from the tax year must submit their returns within four months after the financial year ends.

3. Withholding Taxes (PAYE and Others)

  • Must be submitted within one month after the end of June.

4. VAT Returns

  • Category C businesses (turnover over P12M): Returns issued on the 25th of each month must be filed by the 25th of the following month.
  • Category A & B businesses (turnover under P12M): Returns issued on the 25th of every second month must be filed by the 25th of the second month.

Required Attachments for Tax Returns

To ensure smooth processing, taxpayers must attach specific documents when submitting returns:

1. Individual Taxpayers

  • Original copies of relevant certificates (ITW8 or ITW9).
  • Financial accounts (if required).
  • Partnership accounts and contract payment certificates.
  • Plant and machinery details (ITA202), if applicable.
  • Industrial and commercial building records (ITA201), if applicable.

2. Companies

  • Financial statements and capital allowance forms.
  • Industrial and commercial building records (ITA201).
  • Plant or machinery details (ITA202).
  • Copies of contract payments (ITW9), if applicable.
  • Receipts for SAT payments.
  • Minutes of resolutions declaring dividends.
  • Forms for claiming additional company tax credits (ITW21, ITW17).

3. Withholding Taxes

  • Copies of relevant certificates (ITW9).

4. VAT Returns

  • No additional attachments required.

What to Do If You Haven’t Received or Misplaced a Tax Return

If you expect a tax return but haven’t received it, or if you misplace your return, you should:

  • Contact the BURS Tax Assistance Centre.
  • Visit the nearest Income Tax Office for assistance.
  • Request a duplicate copy to ensure timely filing.

Extension of Time for Filing Returns

Taxpayers may request an extension of time to file their tax return by submitting a formal application to BURS, providing valid reasons for the delay. BURS may approve or deny the request based on the circumstances.

Penalties and Interest for Late Submission

Failure to file tax returns on time results in penalties and interest charges. Taxpayers are encouraged to submit their returns promptly to avoid additional costs and legal complications.

Appointment of a Tax Agent

Taxpayers can appoint an agent or representative to handle their tax matters by submitting a written authorization to BURS. The authorization must include full details of the appointed agent.

Confidentiality of Tax Records

BURS maintains strict confidentiality of taxpayer records. Information will only be disclosed to the taxpayer or an officially appointed agent/representative.

Related Articles: