The Eswatini Revenue Service (ERS) and the Eswatini National Provident Fund (ENPF) have signed a Memorandum of Understanding (MoU) aimed at strengthening compliance through a data-sharing framework designed to close persistent tax and statutory contribution gaps.
The agreement, signed by ERS Commissioner General Brightwell Nkambule and ENPF Chief Executive Officer Futhi Tembe, marks a significant step toward enhancing transparency, improving enforcement, and fostering greater collaboration between key regulatory institutions.
At the centre of the partnership is the integration of data systems between the two entities, which will enable the real-time exchange of information to detect and address non-compliance by employers. The initiative is expected to play a critical role in improving revenue collection and safeguarding workers’ statutory contributions.
Speaking during the signing ceremony, Nkambule revealed that Eswatini is currently losing approximately E4 billion annually due to tax non-compliance. He noted that closing this gap remains a top priority for the revenue agency.
“Our vision is to achieve 100 percent compliance for a better Eswatini. This means ensuring that everyone who is required to register does so, that tax returns are filed on time, and that all due taxes are paid in full,” he said.
Nkambule emphasised that achieving this goal will require not only the automation of systems but also stronger collaboration with other regulatory bodies such as ENPF, whose data is critical in identifying inconsistencies and closing compliance gaps.
Drawing from international experience, Nkambule highlighted Finland as a benchmark, noting that the country has achieved approximately 95 per cent compliance largely due to seamless cooperation between its regulatory agencies.
“The difference between them and us is not capability, but collaboration. That is what we are strengthening today,” he said.
He further expressed confidence that the partnership with ENPF could help reduce the tax gap by close to E1 billion within the next year, particularly by addressing discrepancies in Pay-As-You-Earn (PAYE) remittances.
On her part, Tembe described the MoU as a decisive move to clamp down on employers who fail to meet their statutory obligations to workers.
“The days of employers neglecting, delaying, or intentionally avoiding their obligations are coming to an end,” she said.
Tembe noted that some employers continue to deduct contributions from employees’ salaries without remitting them to the Fund, while others under-declare their workforce or fail to register employees altogether.
“This is not only unethical, but also unlawful. It is an injustice to the hardworking people of Eswatini,” she said.
She added that the new data-sharing framework will enable both institutions to detect such practices with greater accuracy and speed, effectively eliminating the loopholes that have allowed non-compliance to persist.
“Employers who have been hiding behind fragmented systems or manual processes should take this as a warning: the space to hide is gone,” Tembe said.
The collaboration is also expected to benefit compliant businesses by promoting fairness and ensuring that those who adhere to the law are not disadvantaged by competitors who cut corners.
Both institutions underscored that the partnership is ultimately about strengthening the country’s economic foundation by improving accountability, enhancing revenue mobilisation, and protecting workers’ futures.