|JULY 2021 – BOTSWANA | TANZANIA
It is important that employers note the following:
Botswana tax changes
Following the Budget Speech delivered in February 2021, the Income Tax Amendment Act 2021 and the Income Tax (Amendment) Act Commencement Order 2021 were published in June 2021. The Act gives the full tax rates not disclosed in the Budget Speech.
Herewith the tax rates, effective 1 July 2021:
To view the Income Tax Amendment Act, 2021, follow the link.
Tanzania tax rates
During the Budget Speech delivered on 10 June, the Minister proposed to reduce PAYE (pay as you earn) rates for the lowest band from 9% to 8%.
The Finance Act 2021, published on 30 June 2021, gives effect to the new rates.
The new annual rates are as follows:
The Minister has increased the minimum threshold number of employees for purpose of Skills and Development Levy (SDL) from the current four employees to ten employees.
To view the Finance Act, 2021, follow the link.