Understanding the corporate income tax and other relevant business taxes is crucial for businesses operating in Eswatini. In addition to corporate income tax, businesses should be aware of VAT, personal income tax, payroll taxes, customs duties, and withholding taxes. It is advisable to consult with a tax professional or refer to the official Eswatini Revenue Authority website for the latest tax regulations, requirements, and any updates to the tax system.
Corporate Income Tax:
Eswatini operates on a source-based tax system, whereby income derived from activities within the country is subject to taxation. As of the knowledge cutoff date in September 2021, the corporate income tax rate in Eswatini is a flat 27.5%. This rate applies to both resident and non-resident companies conducting business in the country.
Types of Business Taxes in Eswatini:
- Corporate Income Tax: The corporate income tax rate in Eswatini is 27.5%. This tax is applicable to profits generated by businesses within the country.
- Value Added Tax (VAT): Eswatini introduced a VAT system on April 1, 2012. The standard VAT rate is currently set at 15%. VAT is levied on the supply of goods and services in Eswatini, with certain exceptions and reduced rates for specific categories.
- Personal Income Tax: While not directly a business tax, it is worth mentioning that Eswatini levies personal income tax on individuals residing in the country. The personal income tax rates in Eswatini are progressive, with rates ranging from 0% to 33%.
- Payroll Taxes: Employers in Eswatini are required to deduct and remit payroll taxes from their employees' salaries. These taxes include social security contributions and employee withholding taxes.
- Customs Duties: Customs duties are imposed on imported goods entering Eswatini. The rates vary depending on the nature of the goods and are based on the Harmonized System (HS) classification.
- Withholding Taxes: Eswatini levies withholding taxes on certain types of payments made to non-resident entities or individuals. The rates vary depending on the nature of the payment, such as dividends, interest, royalties, and technical service fees.
Eswatini Revenue Authority Website:
For detailed and up-to-date information on business taxes in Eswatini, it is recommended to visit the official website of the Eswatini Revenue Authority. The website provides comprehensive information, forms, guidelines, and contact details for any tax-related inquiries.
Eswatini Revenue Authority Website: Official Eswatini Revenue Authority Website