BUSINESS COMMUNITY WELCOMES PRESUMPTIVE TAX

EZULWINI – The newly-introduced Presumptive Tax has been welcomed by the business community as it seeks to ease the tax compliance burden especially for the smaller businesses.

The Presumptive Tax Regime forms part of the changes brought by the Income Tax Order Amendments 2023. The changes came into effect from yesterday.This regime caters for businesses with a gross turnover below E500 000, allowing them to maintain minimal records. Through this regime, small and medium enterprises (SMEs) with an annual turnover below E50 000 will pay zero per cent. Small businesses with an annual turnover exceeding E50 000, but less than E500 000 will pay 1.75 per cent tax. All these changes will come into effect from tomorrow.

Regime

Speaking during the second Eswatini Revenue Services Client Appreciation Day, Commercial Amadoda Acting President Dumsani Mamba, said through the introduction of the said tax regime, ERS demonstrated to be an entity that listened to frustrations raised by local businesses, especially the smaller ones. Mamba said ERS had also came to the businesspeople and educated them on the issues of tax, which included what were income tax returns, how to compile them and when to submit them. He stated that in the past, compliance was very hard more especially because the SMEs were not educated on how to fill out the required paperwork,  which ERS had also simplified.

The acting president added that the Presumptive Tax regime has made things easier for all as every liSwati businessperson, either small or big, had a tax bracket that suits them. He said, therefore, there would be no need for businesses to run away from ERS. Mamba further appreciated ERS for the interactive platforms provided to assist business that were struggling with their tax compliance. These platforms included the Sondzela S’khulume initiative, where businesses were encouraged to come forward and table their challenges with ERS in order for both parties to find an amicable solution. He encouraged all businesses, especially SMEs to come forward and register for this tax regime according to their annual turnovers.
Meanwhile, the Southern Africa Customs Union (SACU) Executive Secretary, Thabo Khasipe, lauded Eswatini for the introduction of this tax regime. He said it was important for everyone to comply with tax obligations.

Administration

Khasipe said it was important for the tax administrator to find ways to make taxation a norm in the country, as it was in other countries like the United States of America (USA). Meanwhile, the Minister of Finance, Neal Rijkenberg, said to support the administrative efforts of the ERS; government has improved some areas of tax policy and facilitated administrative measures of the ERS. He said specific developments in this regard include the amendment of the Income Tax Order, which has among other aims the purpose of improving tax administration. “We are also grateful to have supported administrative efforts towards tax debt reduction like managing SOE tax debt, which has now stopped accumulating, withholding of VAT from government suppliers and the ‘Sondzela Sikhulume’ campaign who targets to support taxpayers that are troubled by tax debts,” said the minister.

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