- Government proposes locking business premises due to the failure of remitting tax to the Commissioner General (CG).
- Increasing the taxation rate on middle class earners, from 33% to 36%, for those earning above E250, 000.
- A penalty of up to E250, 000 per day for withheld tax after failure to submit a return, electronically or alternatively in cases where system is down.
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By Ntokozo Nkambule
Business Eswatini (BE) has invited members of the public to submit comments they may have regarding the Income Tax Amendment Bill of 2022. The government has proposed a number of changes such as increasing the taxation rate on middle-class earners, from 33% to 36%, for those earning above E250, 000.
The Income Tax Amendment Bill of 2022 was gazetted by the government on the 4th of March 2022. Key tax rates outlined by BE in its invitation for comments document include; Corporate Tax rates slashed from 27.5% to 25%, and PAYE, depending on annual income, ranging from 20% to 36%.
Some Key Changes Proposed by Government:
- Introduction of Capital Gains Tax
- A penalty of up to E250, 000 per day for withheld tax after failing to submit a return, electronically or alternatively in cases where the system is down.
- Locking of business premises due to failure to remit tax to the Commissioner-General (CG). Goods on premises shall be attached. The CG may sell the immovable or movable property to recover the tax
- Yearly taxation on long-term contracts; this will be annually based on the percentage of the amount completed in that year
- Foreign taxable income for a resident person who conducts business within and outside Eswatini, and when a resident company has income sourced from both within and outside Eswatini
- An amount paid by a company to a shareholder for personal use by way of a loan will count as taxation included on the shareholder’s yearly taxable income
- Unilateral relief of double taxation for residents on income for a resident of Eswatini or person who accrues income from a foreign country
BE’s Marketing Manager, Mbuso Sacolo in an interview with this publication said all members of the public are encouraged to submit comments as all emaSwati are one way or the other affected by the proposed tax changes. “We have sent an invitation for comments to our members, but comments are open to all members of the public, whether you are a member of BE or not. The proposed Income Tax changes by the government affect everyone, so we would appreciate comments from members of the public. We must also note that the changes will have different repercussions for the public, so diverse comments will help as we submit them to the government” he noted.
Comments must be submitted by 13 May 2022 and should be emailed to thandekad@business-eswatini.co.sz.