Its been said that if a business makes less than E41 000 in their yearly assessment, they will be expected to pay nothing at all to the Swaziland Revenue Authority (SRA). However, if the business makes more than E41 000 but not more than E500 000, they will be expected to pay five per cent of their income after a review of their yearly assessment as stipulated in the draft Income Tax Amendment of 2017. Principal Secretary in the Ministry of Finance, Bheki Bhembe, said the draft amendment which will only apply to businesses registered under presumptive tax with the SRA in terms of the act, would soon be deliberated by Cabinet where it would be decided as to whether the recommendation to further reduce it to three per cent is adopted.
Thereafter, the bill will be tabled to Parliament for further deliberations, which will culminate in Royal assent.
“We will have to wait until such time when Cabinet has approved a reduction of the (presumptive tax),” briefly said Bhembe when asked whether the government had approved the proposed further reduction of the five per cent presumptive tax.
It should be mentioned that SMES or ‘small business’ in accordance with the proposed amendment means any taxpayer who is ordinarily resident or carrying on business in Swaziland whose turnover derived from carrying on of that business was less than E500 000 in a year of assessment unless the Commissioner in a particular case otherwise directs.