BURS tax tables 2011 work brad

1 ITW 99/2011 burs botswana unified revenue service (FOR EMPLOYEE S REMUNERATION) PART I TAX tables : DAILY, WEEKLY, MONTHLY AND ANNUAL PART II TAX tables : ILLUSTRATIVE EXAMPLES PART III VALUATION OF BENEFITS PART IV GUIDANCE NOTES PRESCRIBED BY COMMISSIONER GENERAL NOTES ON USAGE OF TAX DEDUCTION tables 1. These Tax Deduction tables are prescribed under the provisions on the Income Tax Act and issued in combination with the Employer s Guide already in use. 2. An employer is obliged to use these tables for determining the tax to be withheld from any payment of remuneration unless he has a Directive (Form ITW 4) from the Commissioner General or written authority from the Commissioner to use some other method.

2 3. These tables are to be used to calculate the tax to be withheld from any payment of remuneration including the value of benefits made on or after 1st July 2011. 4. Examples of use of these tables are provided. These examples do not apply where the employer has received a Directive from the Commissioner General. In such cases the instruction in the Directive must be followed. These examples are specified in terms of the Act. Tax deduction tables and Tax rates used in the examples are those applying from 1st July 2011. The examples do not exhaust all possibilities. If your problem is not answered, please contact the Botswana Unified Revenue Service at the addresses stated below.

3 5. Where the term resident is used it is assumed that the Employer holds an acceptable ITW 3 (Residence) completed by the employee. 6. The only deduction allowable from Gross Remuneration is on contribution made by the employee to an approved superannuation fund. 7. Severance pay under the Employment Act and gratuities to citizens and expatriates are to be dealt with as in example 8. 8. Where tax has been deducted from gratuity payable to employees in accordance with the Act, it will not be necessary to seek a directive in ITW 6. But both the employer and the employee should ensure that the employee does not owe any tax to the Commissioner General.

4 2 Contact addresses and phone numbers BURS Head Office Private Bag 0013 Gaborone Tel: 3638000/3639000 Fax: 363999/3953101 Toll Free phone: 0800 600 649 Website: E-mail: Call Centre: 17649 BURS Private Bag 38 Francistown Tel: 2413635 Fax: 2413114 BURS Private Bag 13 Selibe - Phikwe Tel: 2613699 Fax: 2614862 BURS Box 219 Maun Tel: 686 1321 Fax; 686 0194 BURS P. O. Box 97 Palapye Tel: 492 0388 Fax: 492 0784 BURS P. O. Box 263 Lobatse Tel: 533 0566 Fax: 533 2477 BURS Private Bag 0018 Ghanzi Tel: 659 6456 Fax: 659 6468 BURS Box 5 Jwaneng Tel: 588 0695 Fax: 588 3438 3 Contents PART I.

5 6 REMUNERATION PAID AT DAILY REMUNERATION PAID AT WEEKLY INTERVALS ..9 REMUNERATION PAID AT MONTHLY PART II ..60 TAX DEDUCTION TABLE FOR RESIDENT EMPLOYEES ..60 REMUNERATION PAID ANNUALLY ..61 TABLE I: TAX DEDUCTION tables FOR NON-RESIDENT EMPLOYEES ..61 TABLE II: EXAMPLES TO HELP TAXPAYERS UNDERSTANDING ..62 EXAMPLE 1: RESIDENT PAID DAILY ..62 EXAMPLE 2: RESIDENTS PAID WEEKLY ..62 EXAMPLE 3: RESIDENTS PAID EXAMPLE 4: NON-RESIDENTS ..62 EXAMPLE 5: PAY PERIOD NOT IN TAX tables ..63 EXAMPLE 6: PAID REGULARLY WITH ADDITIONAL PAYMENT(S) ..64 EXAMPLE 7: PAID REGULARLY WITH INCREASE BACK-DATED TO A DATE IN A PRIOR TAX YEAR ..64 EXAMPLE 8: EMPLOYEE JOINS THE SERVICE IN THE MIDDLE OF THE TAX YEAR.

6 66 EXAMPLE 9: SEVERANCE PAY, IN SERVICE AND TERMINAL EXAMPLE 10: IRREGULAR PAYMENT AT REGULAR SPREAD BACK SHEET FOR COMPUTATION OF TAX ON IRREGULAR AMOUNTS PAID REGULARY (WHERE AMOUNT VARIES EACH MONTH) ..69 EXAMPLE 11: OCCASIONAL IRREGULAR PAYMENT (S) CAUSING THE RATE OF REMUNERATION TO EXCEED P36 000 PER ANNUM (P3000 PER MONTH)..70 EXAMPLE 12: Tax to be deducted where Tax Free remuneration is paid ..71 EXAMPLE 13: Computation of Tax where employer provided benefits to Employees: ..72 EXAMPLE 14: Tax to be deducted from payment of retrenchment package by the Employer (Section 32(14) of the Income Tax Act)..73 EXAMPLE 15: VARIATION FROM TAX DEDUCTION PART III ..75 A.

7 VALUATION OF BENEFITS GENERAL ..75 B. EMPLOYMENT INCOME BENEFITS ..79 1. Car Benefit ..79 2. Furniture and Furnishing ..79 4 3. Interest free or low interest bearing loans: ..79 4. Medical Contributions ..80 5. Share savings or share option schemes: ..80 6. Valuation of other benefits: ..80 STATUTORY INSTRUMENT NO. 43 of Current Capital Relevant percentage of employment income ..81 HOUSING BENEFIT TABLE (Tax Year 20011 12 onwards) ..82 PART IV ..83 ALLOWANCES FOR EMPLOYEES ..84 RATES FOR TAX YEARS 2006/2007 TO 2010/2011 ..84 RESIDENT INDIVIDUALS ..84 NON-RESIDENT INDIVIDUALS ..84 5 DAILY TABLE PART I TAX DEDUCTION tables For Resident Employees paid daily 1 DR THIS TABLE TO BE USED ONLY FOR REMUNERATION PAID AT DAILY INTERVALS 1.

8 Remuneration (REM) means any amount accrued to an employee (a) by way of wages, salary, leave pay, pay, fee, commission, bonus, gratuity or compensation; (b) commutation of moneys due under any contract of employment or service; or (c) pension, lump sum payment or other benefit but does not include any amount accrued to any resident individual in respect of services rendered where such amount does not exceed annual rate of P600; (d) any other cash and non cash employee benefits. You may deduct the employee s contribution to an Approved Superannuation Fund. The deduction for any such contribution should not exceed 15% of Remuneration. 2. Apply the Remuneration (ignoring thebes) to the tables below and deduct amount of tax shown.

9 REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX 144 159 174 189 204 219 234 249 264 145 160 175 190 205 220 235 250 265 146 161 176 191 206 221 236 251 266 147 162 177 192 207 222 237 252 267 148 163 178 193 208 223 238 253 268 150 165 180 195 210 225 240 255 270 151 166 181 196 211 226 241 256 271 152 167 182 197 212 227 242 257 272 153 168 183 198 213 228 243 258 273 155 170 185 200 215 230 245 260 275 156 171 186 201 216 231 246 261 276 157 172 187 202 217 232 247 262 277 158 173 188 203 218 233 248 263 278 6 7 Part 1 Tax Deduction tables THIS TABLE TO BE USED ONLY FOR REMUNERATION PAID AT DAILY INTERVALS 2 DR REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX 279 304 329 354 379 404 429 454 479 280 305 330 355 380 405 430 455 480 281 306 331 356 381 406 431 456 481 282 307 332 357 382 407 432 457 482 283 308 333 358 383 408 433 458 483

10 285 310 335 360 385 410 435 460 485 286 311 336 361 386 411 436 461 486 287 312 337 362 387 412 437 462 487 288 313 338 363 388 413 438 463 488 290 315 340 365 390 415 440 465 490 291 316 341 366 391 416 441 466 491 292 317 342 367 392 417 442 467 492 293 318 343 368 393 418 443 468 493 295 320 345 370 395 420 445 470 495 296 321 346 371 396 421 446 471 496 297 322 347 372 397 422 447 472 497 298 323 348 373 398 423 448 473 498 300 325 350 375 400 425 450 475 500 301 326 351 376 401 426 451 476 501 302 327 352 377 402 427 452 477 502 303 328 353 378 403 428 453 478 503 8 Part 1 Tax Deduction tables THIS TABLE TO BE USED ONLY FOR REMUNERATION PAID AT DAILY INTERVALS 3 DR REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX REM TAX 504 514 523 532 541 550 559 568 505 514 523 532 541 550 559 568 506 515 524