Investor's Guide To Eswatini
9 Taxation
Taxation
swatini taxes on a source basis system, in terms of which income from a source within or deemed to be within
Eswatini will be subject to taxation.
Trading Losses
Where, in any year of assessment, the allowable deductions of the taxpayer, as determined by the order exceeding the total
income, an assessed loss arises. The loss may be carried forward in subsequent years of assessment to be set off against
any future income. However, where a company does not carry on trade in any year of assessment, it is not entitled to bring
forward the loss from the previous tax year. A company may, accordingly, carry forward the assessed losses indefinitely,
provided that such loss has been assessed/approved by the Commissioner General.
Tax Rates
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The Corporate Tax Rate is 27.5% unless a company qualifies for a corporate tax incentive of 10% for 10 years.
Value Added Tax (VAT) is 15%.
Individuals are taxed on income from a sourced/deemed to be within Eswatini.
Personal tax rates are:
Rates of normal tax in the case of individuals
TAXABLE INCOME
0
100,000
100,000
150,000
150,000
200,000
200,000
And above
Rates of Tax
0 +20% of the excess over O
20,000+25% of the excess over 100, 000
32, 500+30% of the over 150,000
47,500 + 33% of the excess over 200,000
Registration, Provisional Taxes and Returns
a. Registration
Taxpayers are required to register as taxpayers within 90 days of registration so they become liable for normal taxes (once
the company has been registered with the Company Registry or a company representative has been present in Eswatini
for at least 90 days, for purposes of furthering the business interests of the company). Income tax returns are required to
be submitted twice per tax year. From the 1st July to the 30th June is the Tax Commissioner General's year of assessment.
However, taxpayers who want to use a different tax year end may make an application for approval by the tax authority.
Companies registered for taxes but not yet operational or that have not been operating in the year of assessment must
notify the Commissioner General in writing.
b. Provisional Tax
Eswatini tax year starts on the 1st of July. Provisional tax is paid twice per year, the first payment is due no later than the
31st December, the second payment is due no later than the 30th June, and the third payment is due on receipt of the
Notice of Assessment after having submitted income tax returns, while remittance of PAYE is done no later than the 7th of
every month.
Submission of Tax Returns
The deadline for the submission of income tax returns is issued through a public notice by the Commissioner General,
annually. Such notice specifies the deadlines for submission for all income tax returns. Where there may be required an
extension of time for the submission of the returns, such person may make an application accordingly for approval. At the
end of the tax year (30th of June), the employer is required to reconcile all employees' taxes paid and submit an annual
reconciliation statement in that regard, on or before the 30th of September, annually.
a. 13.3.4 Withholding Tax
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