Verified Facts
The tax rates in Eswatini range from 20% to 33% for personal income, with a corporate tax rate of 27.5% and a value-added tax (VAT) rate of 14%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Eswatini has a territorial taxation system, where residents are taxed on their locally sourced income, while non-residents are taxed on their income derived from Eswatini sources. The country's tax system is based on the Income Tax Act of 1975, which has undergone several amendments over the years. To be considered a tax resident in Eswatini, an individual must be physically present in the country for at least 91 days in the tax year, or have a permanent home in Eswatini and be physically present in the country for at least 30 days in the tax year.
The tax authority in Eswatini is the Eswatini Revenue Authority (SRA), which is responsible for the collection of taxes, including income tax, corporate tax, and VAT. The SRA also provides tax guidance and support to taxpayers, including expats and foreign workers. Eswatini has a relatively simple tax system, with a limited number of tax rates and allowances. However, the tax laws and regulations can be complex, and it is recommended that taxpayers seek professional advice to ensure compliance with all tax requirements.
Personal Income Tax
| Income Bracket (SZL) | Tax Rate |
|---|---|
| 0 - 60,000 | 20% |
| 60,001 - 120,000 | 25% |
| 120,001 - 180,000 | 28% |
| 180,001 - 250,000 | 30% |
| 250,001 and above | 33% |
| Taxpayers in Eswatini are entitled to various deductions and allowances, including a personal allowance of SZL 60,000, and deductions for mortgage interest, medical expenses, and retirement contributions. Tax returns must be filed by the end of June following the tax year, and payments can be made in installments. It is also important to note that Eswatini has a Pay-As-You-Earn (PAYE) system, where employers are required to deduct tax from employees' salaries and remit it to the SRA. |
Corporate & Business Tax
- The corporate tax rate in Eswatini is 27.5%, which applies to both resident and non-resident companies.
- Small businesses with an annual turnover of less than SZL 1 million are eligible for a reduced tax rate of 10%.
- Eswatini has several free zones, including the Matsapha Industrial Site and the King Mswati III International Airport, which offer tax incentives and other benefits to businesses.
- Companies must register with the SRA and obtain a tax clearance certificate before commencing business operations.
- Companies are also required to file annual tax returns and pay tax on their profits, which must be done by the end of September following the tax year.
VAT / Sales Tax
- The standard VAT rate in Eswatini is 14%, which applies to most goods and services.
- A reduced VAT rate of 0% applies to certain basic foodstuffs, including maize meal, bread, and vegetables.
- Exemptions from VAT include financial services, education, and healthcare.
- Tourists can claim a refund of VAT on certain goods purchased in Eswatini, provided they have a valid receipt and export the goods within 90 days of purchase.
For Expats & Foreign Workers
- Expats and foreign workers are considered tax residents in Eswatini if they are physically present in the country for at least 91 days in the tax year.
- Eswatini has double taxation treaties with several countries, including South Africa, the United Kingdom, and the United States, which can help reduce tax liabilities.
- Expats and foreign workers are required to obtain a tax clearance certificate before leaving the country, which can be obtained from the SRA.
- Social security contributions are mandatory for all employees, including expats and foreign workers, at a rate of 5% of gross salary.
- Remittances of foreign currency are subject to exchange control regulations, and expats and foreign workers must obtain approval from the Central Bank of Eswatini before remitting funds abroad.
- Expats and foreign workers may also be required to file tax returns in their home country, depending on their individual circumstances.
Crypto & Investment Income
- Investment income, including dividends, interest, and rental income, is subject to tax in Eswatini.
- Cryptocurrency is considered a taxable asset, and gains from the sale of cryptocurrency are subject to capital gains tax.
- Dividends received by residents are exempt from tax, provided the dividend is paid by a company that is resident in Eswatini.
- Interest income earned by residents is subject to tax, at a rate of 20%, unless the interest is earned on a tax-exempt investment, such as a government bond.
- Eswatini has a withholding tax on certain types of investment income, including dividends and interest, which must be withheld by the payer and remitted to the SRA.