Kingdom of Eswatini

Eswatini’s income tax system applies a progressive tax on individuals, with both residents and non-residents generally taxed on income sourced within the country. Individuals pay tax on earnings such as salaries and business profits, with allowances and deductions available to reduce taxable income. Employers must withhold taxes through the Pay As You Earn (PAYE) system and remit them to the Eswatini Revenue Service (ERS), which administers income tax under the Income Tax Order, 1975 (as amended). The Revenue Authority Act, 2008 created the ERS that administers, enforces and modernises Eswatini’s income tax system.

Payroll taxes comprise PAYE income tax and Eswatini National Provident Fund (ENPF) contributions. The PAYE tax rates are progressive, ranging from 20% to 33% depending on the employee’s taxable income. Taxpayers must file monthly and annual income tax returns, and payments are generally made either through withholding (PAYE) or direct assessments. Employers and employees must contribute to the ENPF, a mandatory retirement savings scheme. Each contributes 5% of the employee’s gross monthly earnings, up to a monthly ceiling of E4300, resulting in a maximum monthly contribution of E215 each (E430 total per employee). These contributions support retirement and social security benefits.

The tax year runs from 1 July to 30 June. Employers must remit both employees’ PAYE tax and Eswatini National Provident Fund (ENPF) contributions to the ERS by the 7th of the following month. An annual return of salaries must be submitted on or before 30 September, unless otherwise specified by the ERS. Failure to submit monthly or annual tax returns can result in penalties of up to 20% of the tax due, daily fines, interest charges and estimated assessments imposed by the ERS.

Employers and payroll providers must maintain accurate and up-to-date records of employee earnings, tax deductions (such as PAYE) and statutory contributions like those to the ENPF. These records must include details of employment contracts, salary payments, tax withholdings and remittances to the ERS. Documentation must be retained for at least five years to ensure compliance with tax and labour regulations and to support audits or inspections by authorities.