Looking to hire in Botswana

Botswana does not impose a statutory deadline for submitting expenses. Employees can submit both current-year and prior-year expenses, subject to company policy, and are encouraged to do so promptly so they can be reimbursed in a timely manner. Expenses approved by the client and employer before the payroll cut-off date are typically included in that month’s payroll, and processing is generally based on the date of client approval.

All expenses must be reviewed and approved by the employee’s manager and by Deel. If an expense is submitted without the required supporting documents, it will be treated as taxable. Most business expenses can be reimbursed on a non-taxable basis when supported by a tax invoice or receipt that clearly shows the date, amount, and the service provider or merchant name. For certain items such as laptops, office equipment, office supplies, business travel insurance, visas, accommodation, flights, car rental, medical insurance, and medical costs, the documentation must also include a description of the purchase or service and the employee’s name. Mileage claims must be supported by a mileage or travel log with the date of travel, starting location and destination, purpose of travel, kilometres travelled, and vehicle type.

For overnight business travel in Botswana, employers commonly pay a per diem or subsistence allowance. There is no official standard rate set for the private sector, so employers determine their own rates. Per diem payments are non-taxable to the extent that they reflect actual business travel expenditure; any amount paid above actual, receipt-supported costs may be reclassified as taxable employment income.

Bonuses in Botswana cover both contractual and discretionary payments on top of salary, including incentive payments and commissions. Performance bonuses are fully taxable as employment income and subject to PAYE at progressive rates, and withholding in periods that include bonus payments may be higher. Contractual gratuities and bonuses paid under an employment contract benefit from a 50% income tax exemption effective 15 January 2024 under the Income Tax Amendment Act 2024, with the remaining 50% taxed at progressive rates. Before paying any gratuity or contractual lump-sum bonus, the employer must obtain a tax directive from the revenue authority.