The tax categories in Swaziland are explained in this article
Swaziland Personal Income Tax
Swaziland’s individual income tax rates increase to 33 percent.
| Taxable income (SZL) | Tax Rate |
| 0 – 60,000 | 20% |
| 60,001 – 80,000 | SZL12,000 + 25% of the amount exceeding SZL60,000 |
| 80,001 – 100,000 | SZL17,000 + 30% of the amount exceeding SZL80,000 |
| 100,001 and above | SZL23,000 + 33% of the amount exceeding SZL100,000 |
Individuals are taxed on money earned in or deemed to have originated in Swaziland.
Swaziland Corporate Tax
Swaziland imposes a uniform 30 percent business tax rate.
Mining businesses, on the other hand, have a variable rate. The following tax rates are applied to corporations whose primary industry is mining:
The first E20,000 of taxable income is taxed at 27%.
30% on the remainder of taxable income
The income tax system in the Kingdom of Swaziland is source-based, which means that income from sources within or deemed to be within Swaziland is taxed.
The Swaziland government has conducted a study of the tax system, resulting in significant modifications to tax rates and bases. Professional assistance is required.
Tax vacations are possible for new manufacturing businesses with the agreement of the Minister of Finance, subject to one of two conditions: (a) the industry does not already exist in Swaziland, or (b) the enterprise is primarily export-driven.
The tax vacation lasts for five years, beginning with the date of commercial production, and taxable income is determined using a formula. However, in accordance with the new tax structure, no additional tax holidays are expected to be provided.
Additional tax breaks may be offered at the Minister of Finance’s discretion to new firms that are deemed advantageous to the national economy.
Tax on Branch Profits
Foreign subsidiaries are subject to the same taxation as domestic subsidiaries on Swaziland profits. In addition, the deemed repatriated income is subject to a 15% branch profits tax.
Tax on Fringe Benefits
The Commissioner of Taxes has established valuations for different in-kind benefits that are subject to taxation. Free and/or subsidized housing, private use of a company vehicle for company business, provision of domestic services and personnel, education, free or subsidized fuel, and other benefits are all covered by such values. Fringe benefits are fully taxed.
Additional Taxes
Stamp charges are charged on a variety of papers; for example, buyers of marketable securities must pay a 1.5 percent stamp tax.
On transfers of immovable property, a sliding scale of transfer duty is due. The rates are 2% on the first SZL40, 000 and 4% on the subsequent SZL20, 000.
6% on excesses beyond SZL60, 000
Allowances for Capital
Hotel and industrial buildings used in manufacturing processes are eligible for a 4% yearly allowance on the cost of the building and upgrades, as well as a 50% initial allowance in the year the building is put into use.
Machinery and Plant
In the case of eligible assets, a 50% initial allowance is given, as well as annual wear and tear allowance based on the asset’s useful life. Other capital assets may be written down over the projected useful life of the asset. The hotel business is given special consideration.
Withholding Tax
Withholding taxes apply to some payments made to non-residents, as follows:
15% of the sum paid to entertainers and athletes.
Contractor: 10% of the payment to the non-resident contractor; (subject to a directive)
Royalties and management fees: All royalties and management fees paid to non-residents are subject to a 15% withholding tax. Ecclesiastical, philanthropic, and educational institutions are exempt from royalties.
NRST (non-resident shareholder tax): If dividends are paid to South African, Botswana, Namibian, or Lesotho enterprises, 12.5 percent of the payout is taxed. In the case of all other dividends, the rate rises to 15%.
Non-resident tax on interest (NRTI): 10% of the amount due in interest.
