BURS Capital Transfer Tax : Botswana Unified Revenue Service

Name of the Organization : Botswana Unified Revenue Service
Type of Facility : Capital Transfer Tax
Country : Botswana

Official Website : http://www.burs.org.bw/

Capital Transfer Tax :

Capital Transfer Tax (CTT) is levied under the Capital Transfer Tax Act, 1985.(Chapter 53 :02)

Related : Botswana Unified Revenue Service Taxpayer Self Service : www.statusin.org/5128.html

It is tax on transfer of property (tangible, intangible movable or immovable), by way of :
** Gift or
** Inheritance.

Taxable Persons :
The person liable is the donee or beneficiary of a chargeable disposal including a trustee to whom such property has been disposed for the benefit of any beneficiary.

Charge to Tax :
CTT is charged on the aggregate taxable value of all chargeable disposals made by a donor to a donee in any tax year at the rates specified.
*Value means the market value

Exemptions :
CTT is not chargeable in respect of

A. The value of property which is disposed off :
** By way of inheritance to a spouse on the death of another spouse
** To a person on his marriage if the value is less than P5000
** Household goods of a deceased person if the value is less than P15000
** Livestock or produce which has been included in the income of the donor.

B. Disposal of property outside Botswana if the beneficiary lives outside Botswana

C. Disposal of any property for maintenance , education or training of a child until the age of 21.

D. The value of any debt which is included in the gross income of the debtor under section 28(2)(h) of the Income Tax Act.

E. Aggregate value of all casual gifts of not more than P5000 donated to a person in any tax year.

Allowable deductions :
In ascertaining the aggregate taxable value of any chargeable disposal, the following deductions are made;
a. The first P100 000 of distributable value of the estate of a deceased person
b. Any expenditure wholly, exclusively and necessarily incurred by the donee in effecting the disposal or obtaining possession of the property.
c. All debts due by the donor to persons resident in Botswana in respect of the property disposed off.

Liability of certain property to CTT :
Any property that has been disposed off for a consideration which in the opinion of the Commissioner General is not adequate, will be chargeable to Capital Transfer Tax. Taxable value will be the difference between the actual consideration and the market value.

Forms : http://www.burs.org.bw/index.php/forms

eServices: https://eservices.burs.org.bw/burs-etax/login?_cid=e92b52c2-560c-4039-8873-a1c02c7c2327