ERS extends tax relief for small businesses

Ezulwini – The Eswatini Revenue Service has introduced a simplified process for obtaining the Tax Compliance Certificate for procurement, offering relief to businesses while encouraging adherence to tax obligations.

ERS Commissioner General Brightwell Nkambule announced the measures as part of ongoing efforts to assist taxpayers in meeting requirements under the Income Tax Compliance Certificates Regulations of 2022.

The new approach adopts a phased system aimed at reducing disruption to business operations while giving companies time to regularise their tax affairs.

For taxpayers with an annual turnover below E500 000, the enforcement of the Tax Compliance Certificate requirement for procurement transactions has been postponed until 31 March 2027. This concession applies only to businesses without outstanding tax obligations.

Those with pending obligations are still able to engage with the revenue authority, which has opened the door for reasonable and workable payment arrangements to help settle their dues.

During the grace period, smaller businesses will be guided to register under the Presumptive Tax Regime. This framework introduces simplified tax rates, with businesses earning below E50 000 annually paying no tax, while those above that threshold will be taxed at 1.75 percent.

For companies with annual turnover exceeding E500 000, ERS is working with procuring entities to automate and simplify compliance verification processes. Further measures are expected to be introduced as systems are adjusted to accommodate different taxpayer circumstances.

Nkambule also pointed to ongoing support programmes for taxpayers facing compliance challenges. These include the Sondzela Sikhulume initiative and the Voluntary Disclosure Programme, both designed to assist businesses in bringing their tax affairs up to date through cooperative engagement.

ERS says the changes are part of broader efforts to ensure the implementation of the regulations remains simple, fair and supportive of economic activity, while strengthening the role of tax compliance in funding public services and national development.

Taxpayers seeking assistance are encouraged to contact ERS service centres or use available communication channels, including email, telephone and WhatsApp.