Swaziland
enterprise” in terms of issued guidelines. These incentives include a 10% corporate tax rate for 10 years and an exemption from WHTs on dividends for the same period. • Losses – Where income is exceeded by allowable deductions, an assessed loss is created. Such loss may be carried forward indefinitely for setoff against taxable income in future years of assessment. The proviso exists that the taxpayer must continue to operate and derive income. • Foreign-source income – Only income which has a source or deemed source in Swaziland will be subject to tax in the Kingdom. Foreign-sourced income is exempt from Swaziland tax. • Exemption from non-resident shareholders tax and non-resident tax on interest – There is provision in the Order, to exempt a non-resident person from non-resident’s shareholders tax and from non-resident tax on interest in respect of dividend income and interest income he receives from Swaziland in cases where the Government has given an undertaking to grant such exemptions. • Plans to review the current tax system to improve competitiveness and collection of income tax revenues, and to readjust the tax system to ensure that all classes of taxpayers are given a fair and equitable share of the burden and to improve the collection of income tax revenues. • Establishment of a tax advisory committee and tax policy unit to deal with tax policy formulation. Exchange Controls Swaziland is a member of the Common Monetary Area (CMA) with South Africa, Lesotho and Namibia. In broad terms, it constitutes a single exchange control area. There are no restrictions on inward investment by foreigners and profits may be fully repatriated. There are restrictions on outward investment by local residents.
of Swaziland in co-operation with Authorised Dealers. Generally, all loans and shareholdings abroad are subject to prior approval. Expatriates and Work Permits Subject to meeting certain criteria, these may be granted to investors and skilled personnel. Trade Relations • Memberships – SACU, South African Development Community (SADC), Common Market for Eastern and Southern Africa, European Free Trade Area, ACP. • AGOA beneficiary country. • Swaziland has bilateral investment protection agreements with Egypt, Germany, Taiwan, Mauritius and the UK. Notes: 1. As a member of the CMA, monetary developments in Swaziland reflect the monetary policy pursued and implemented by the South African Reserve Bank. Swaziland has signed an interim Economic Partnership Agreement (EPA), which will cover trade in services and investments between the SADC-EPA states and the European Union (EU). 2. Swaziland continues to support all efforts towards concluding the current Doha Round of negotiations at the World Trade Organisation (WTO). A satisfactory outcome for Swaziland and all developing countries will be a Round that places development at the core of the negotiations. This will assist the nation to achieve development policy objectives and aspirations and draw closer to meeting the Millennium Development Goals (MDGs).
The administration of the exchange control regulations is undertaken by the Central Bank 277
Guide to Fiscal Information
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