The Eswatini Revenue Service (ERS) has adopted a phased and supportive approach to implementing the Tax Compliance Certificate (TCC) requirement, delaying enforcement for small businesses to minimise disruption and encourage compliance.
Announcing the update, ERS Commissioner General Brightwell Nkambule said the TCC requirement for procurement transactions will only be enforced from 31 March 2027 for businesses with an annual turnover below E500,000, provided they have no outstanding tax obligations.
“Where such taxpayers have outstanding tax obligations, the ERS remains open to accepting reasonable and workable arrangements to assist them in settling the obligations,” he said.
Nkambule said the phased approach is designed to give smaller enterprises time to regularise their tax affairs while maintaining business continuity.
“ERS is committed to making compliance simple, fair and supportive of economic activity,” he said, noting that the implementation of the Income Tax (Compliance Certificates) Regulations, 2022, will be guided by engagement and flexibility.
During the transition period, small businesses will not be required to produce a TCC for procurement purposes. However, those with outstanding tax obligations are encouraged to engage the ERS and enter into reasonable payment arrangements.
During this period, taxpayers with turnover below E500 000.00 will be assisted to register under the Presumptive Tax Regime, which provides a simplified tax framework for small businesses. Under this regime, the applicable tax rate is 0% for businesses with an annual turnover below E50,000.00 and 1.75% for those with an annual turnover above E50,000.00
The Commissioner General added that the ERS is working closely with procuring entities to automate and simplify the verification of tax compliance. Further simplified compliance measures will be communicated as the processes are adjusted to accommodate the different circumstances that taxpayers are facing.
Nkambule further encouraged taxpayers facing compliance challenges to take advantage of ERS support programmes such as the Sondzela Sikhulume initiative and the Voluntary Disclosure Programme, which are designed to help businesses regularise their tax affairs in a cooperative manner.
He emphasised that taxpayer compliance plays a critical role in national development by enabling government to fund essential public services.
The ERS said it will continue to communicate further guidance on the phased implementation of the TCC regulations and urged taxpayers to seek assistance through its service centres and official communication channels.