HIGH INCOME EARNERS TAX RATE UP TO 45% WHILE SD’S AT 33%

MBABANE – South Africa’s Finance Minister Pravin Gordhan has announced the republic’s national budget and the Swazi government has a lot to draw from it if determined to see economic growth and increased revenue spending.

The measures for increased revenue collection were concentrated on tax increases. Interestingly, the tax proposals were progressive.
Being progressive refers to increasing taxes for big earners. Simply put, the most paid will be taxed more up to 45 per cent. Gordhan announced that those earning E1.5 million per annum or more would be taxed 45 per cent.

In essence, South Africa’s income tax threshold is higher than that of Swaziland by E89 000 but the rate of tax is lower. This means Swazis earning lower incomes are taxed more than their South African counterparts.South Africans earning E0-E188 000 are taxed 18 per cent of their income while Swazis earning E0-E100 000 per annum are taxed 20 per cent of their income which is two per cent higher than that of South Africa.

The maximum threshold for income in Swaziland is 33 per cent. This means people earning  more than E1 million per year  in Swaziland pay 33 per cent income tax, like those earning E200 000 per annum. Meanwhile, South Africans earning E1.5 million and above will from March 2017 pay 45 per cent tax. 
The progressive tax system implemented by South Africa is something worth emulating by the Swazi Government.

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