Botswana -- Cryptocurrency Tax Framework Regulatory Overview

Trading: If an individual regularly buys and sells cryptocurrencies with the intention of making a profit, these activities are likely to be considered a "trade" or "speculative venture." The profits realized would be subject to personal income tax.

Mining: Income derived from cryptocurrency mining (e.g., block rewards, transaction fees) would be considered ordinary income and taxable.

Staking/Lending: Rewards earned from staking or lending cryptocurrencies would also be treated as ordinary income.

Receiving Crypto as Payment: If an individual receives cryptocurrency as remuneration for services rendered or as a salary, the value of the cryptocurrency at the time of receipt would be taxable as employment income.

Companies dealing in cryptocurrencies as part of their business activities (e.g., crypto exchanges, trading firms, mining operations, businesses accepting crypto payments) would include profits from these activities in their taxable income.

The profits would be subject to corporate income tax.

Botswana's general deduction provision is section 39 of the Income Tax Act (Cap. 52:01), which allows expenditure wholly, exclusively and necessarily incurred in the production of assessable income; the test has three limbs, and necessity is a separate requirement beyond 'wholly and exclusively'.

Botswana's personal income tax is progressive: resident individuals pay nil on the first P48,000 of taxable income, then 5% to P84,000, 12.5% to P120,000, 18.75% to P156,000 and 25% above P156,000, with a 27.5% band on taxable income above P400,000 from 1 July 2026.

Botswana's top personal income tax rate rose from 25% to 27.5% with effect from 1 July 2026, the new band applying to taxable income above P400,000 for resident and non-resident individuals under the Income Tax Act, 2025.

The first P48,000 of a Botswana resident individual's annual taxable income is taxed at nil, forming the zero-rate band of the resident individual scale; the non-resident scale has no zero-rate band and starts at 5%.

Botswana's 25% resident individual rate applies to taxable income above P156,000, not above P144,000; income between P120,000 and P156,000 is taxed at 18.75%, and from 1 July 2026 a 27.5% band applies above P400,000.

Botswana's general corporate income tax rate rose from 22% to 24.5% with effect from 1 July 2026 under the Income Tax Act, 2025; the non-resident company rate fell from 30% to 24.5% and a 10% withholding tax on repatriated branch profits was introduced.

Botswana does not apply a single flat company rate: manufacturing companies approved by the Minister of Finance were taxed at 15%, and International Financial Services Centre companies at 15% on approved non-resident income, under the Income Tax Act (Cap. 52:01); from 1 July 2026 the Income Tax Act, 2025 sets the general company rate at 24.5% with IFSC companies at 17.5% or 24.5%.

Botswana charges capital gains as a distinct class of income: section 35 of the Income Tax Act (Cap. 52:01) lists the chargeable assets, including business immovable and movable property in Botswana, shares and debentures, residential property and IFSC assets, and Table IV of the Eighth Schedule sets a separate rate scale for individuals; the Income Tax Act, 2025 keeps capital gains in a dedicated Part with its own individual rate table and requires payment within 28 days of disposal from 1 July 2026.

Immovable property situated in Botswana.

Shares in a company not listed on the Botswana Stock Exchange, where the company's assets mainly consist of immovable property.

The Value Added Tax (Amendment) Bill No. 22 of 2025, published 8 August 2025 and enacted as the Value Added Tax (Amendment) Act No. 16 of 2025, extends Botswana VAT to remote services supplied by non-residents and took effect 1 June 2026 by Statutory Instrument No. 72 of 2026; it creates no definition of digital assets. 'Digital currency' is defined instead by the Value Added Tax Bill No. 39 of 2025, published 15 December 2025, whose section 2(1) excludes digital currency from both 'goods' and 'money' and whose section 7(2) levies VAT at 14%.

Implication: This would mean that the buying, selling, or exchange of cryptocurrencies itself would be exempt from VAT. Businesses providing services related to crypto (e.g., operating an exchange) would not charge VAT on the crypto transactions, but they also would generally not be able to claim input VAT on expenses incurred to provide those exempt services.

Botswana taxes on a source basis: section 9 of the Income Tax Act (Cap. 52:01) charges gross income accrued or deemed to have accrued in the tax year from every source situated or deemed to be situated in Botswana, so foreign-source income falls outside the charge unless a deeming rule in section 11 brings it in.

The ITR12 is the South African Revenue Service individual income tax return and has no Botswana counterpart; Botswana individuals file annual income tax returns with the Botswana Unified Revenue Service under the Income Tax Act, and Botswana has no crypto-specific return, schedule or disclosure field.

The value of cryptocurrency gains or income must be converted to Botswana Pula (BWP) at the market value at the time the income or gain is realized or received.

The ITR14 is the South African Revenue Service company income tax return and has no Botswana counterpart; Botswana companies file annual income tax returns with the Botswana Unified Revenue Service, and from 1 July 2026 that filing is governed by the Income Tax Act, 2025 and the Tax Administration Act, 2025.

Proper record-keeping is essential, including transaction dates, values (in crypto and BWP), and counter-parties where applicable.

Any expenses claimed as deductions must be supported by proper documentation.

BURS has published no crypto-asset tax guidance and operates no crypto return or schedule of any kind. Botswana's only crypto-specific tax provision is the section 2(1) definition of "digital currency" in the Value Added Tax Act, 2025 (Bill No. 39 of 2025, published 15 December 2025, in force 1 July 2026), which excludes digital currency from both "goods" and "money", and Botswana taxes on a source basis rather than on worldwide income.

The Botswana Unified Revenue Service is a body corporate established under the Botswana Unified Revenue Service Act, Act No. 17 of 2004 (Cap. 53:03), in force 1 August 2004. It assesses and collects revenue, administers and enforces the revenue laws including income tax, value added tax and customs and excise, promotes taxpayer compliance, counteracts tax fraud and evasion, and advises the Minister on revenue administration.

Botswana has no crypto-asset tax statute and BURS has issued no crypto tax guidance of any kind. The Income Tax Act, 2025 and the Value Added Tax Act, 2025 replaced Cap. 52:01 and Cap. 50:03 on 1 July 2026, and the sole crypto-specific tax rule in Botswana law is the section 2(1) "digital currency" definition in the Value Added Tax Act, 2025 (Bill No. 39 of 2025), which excludes digital currency from both "goods" and "money".

The Income Tax Act (Cap. 52:01) was repealed and replaced by the Income Tax Act, 2025, enacted in December 2025 and brought into operation on 1 July 2026. The corporate rate rose from 22 per cent to 24.5 per cent, the non-resident company rate moved from 30 per cent to 24.5 per cent, a 10 per cent withholding tax on repatriated branch profits was introduced, a new 27.5 per cent personal band applies above P400 000, and individuals must pay capital gains tax within 28 days of disposal.

Income tax and capital gains tax in Botswana are governed by the Income Tax Act, 2025, in force 1 July 2026, which replaced Cap. 52:01. The Virtual Assets Act, 2025 (Act No. 4 of 2025) is a licensing and market-conduct statute running to 43 sections across licensing, obligations of licence holders, professional conduct and general provisions, and it creates no tax charge, no tax base and no tax rule for virtual assets.

Value Added Tax Act (Cap. 50:03):

This act governs VAT in Botswana, and its principles for financial services would be applied to virtual assets.

The Bank of Botswana's press release "Statement on Crypto Assets - Participation and Regulation" of 10 November 2021 states that crypto assets carry no state or central-bank backing as to legal tender status, transferability, exchange or value, and that at that date no legal or regulatory framework governed investment in crypto assets in Botswana. That regulatory gap was closed by the Virtual Assets Act, 2022 and then by the Virtual Assets Act, 2025 (Act No. 4 of 2025), under which NBFIRA licenses and supervises virtual asset service providers, and the release addresses no tax question.

NBFIRA regulates and supervises Botswana's non-bank financial institutions and is both the licensing authority for virtual asset service providers under the Virtual Assets Act, 2025 (Act No. 4 of 2025) and their AML/CFT supervisory authority. It has published notices naming unlicensed operators, including YellowOcta.com Trading Company on 13 September 2022, and it revoked PAA Capital (Proprietary) Limited's licence under section 15(b) of that Act on 25 February 2026.