A. Value Added Tax/Sales Tax (National Goverment)
1. Name of Tax, Levied in Terms of Which Act (Name, Number and Year)
The Sales Tax Act No. 12 of 1983
2. Department Responsible for Administration
Customs and Excise Department
3. Taxpayer
Section 11 prescribes that persons liable to pay Sales Tax shall be:
(a) in the case of any sale of goods, by the seller;
(b) in the case of any goods imported into Swaziland, by the importer
(c) in the case of any taxable services, by the person by whom such service is rendered and;
(d) in the case of accommodation let or food supplied by a hotel or restaurant, by the person carrying
out the business of the hotel or restaurant concerned.
PROPOSED AMENDMENT TO SUBSECTION 11 (C) An amendment to this Section has been proposed to cover an addition of a new paragraph hereunder referred to as paragraph (c bis) and it reads as follows:“(c bis) in the case of any taxable services rendered by a person not resident in Swaziland the provisions of Section 6 (c bis) shall apply”.
Such proposed amendment is still awaiting approval from the Ministry of Finance before its referral to parliament for passing into a law.
4. Time When Tax is Levied
DATE OF PAYMENT OF TAX
(1) Tax payable under this Act shall be deemed to be due and payable:
(a) in the case of sale of goods manufactured in Swaziland, the date upon which the goods are sold by the manufacturer;
(b) in the case of goods imported into Swaziland, on the date on which the goods are imported;
Provided that goods which are entered under the Customs and Excise Act for home consumption in Swaziland shall for the purposes of this Act be deemed to have been imported on the date on which they are so entered;
(c) in the case of any taxable service, on the date of accrual of the consideration placed on such taxable services to the vendor and;
(d) in the case of accommodation let and food supplied by any hotel or restaurant, on the date of accrual of the consideration placed on such accommodation and food to the vendor
(2) For the purposes of this Act, the date of conclusion of a sale of goods shall be deemed to be the date on which delivery of the goods is effected under the sale transaction or the date on which the consideration payable by the purchaser under the sale transaction is paid in full, whichever date comes earlier.
(3) The Commissioner may, subject to such security as he may require and such conditions as he may impose in each case, permit payment of any tax due to be effected by any person registered under Section 14 at monthly intervals:
Provided that:
(a) payment shall be made before the last day of the month succeeding the month on which the tax become payable in terms of Sub-section (1) above and;
(b) in the case of any tax due and payable on any imported goods, tax shall be paid at the time and place of entry for home consumption of such goods as per the provisions of Subsection 9(1) of the Customs and Excise Act No. 21 of 1971.
(4) In the case of any tax due and payable by any person not registered in terms of Section 14, such tax shall be paid at the time of importation of the goods and, for other transactions, not later than ten (10) days after the date on which such tax has become payable.
5. Included in Tax Base
For the purposes of this Act, the taxable value to be placed on the sale of any goods or services shall be:
(a) in the case of the sale of any goods, the sum of all amounts of consideration accruing to the seller in respect of such sale:
Provided that where there is any dispute or doubt as to the consideration accruing to the seller, the price at which in the opinion of the Commissioner the goods would fetch on a sale made at the time when the tax in respect of the goods became due by a person selling such goods in the open market in Swaziland to a retail trader carrying on business in Swaziland shall be the taxable value;
(b) in the case of goods transferred to Swaziland from places within the common Customs Area, the full and final price paid for the goods by the transferee, including all charges in respect of freight, duties, insurance and any sales tax or value added tax paid in respect of such goods from the country of dispatch.
6. Positive Rates
7. List of Goods/Services at Zero Rate
The Act provides for two different ad valorem rates of sales tax, namely:
(i) 14% on the importation and first sale of goods and services and
(ii) 25% on the importation and first sale of alcoholic beverages and cigarrettes
Section 6 of the Act provides that sales tax shall be calculated by reference to the taxable value of such sales, services and accommodation lettings at the rate prescribed in the First Schedule:
FIRST SCHEDULE ITEM DESCRIPTION OF TRANSACTION RATE OF SALES TAX
1.The first sale of the under-mentioned goods imported into Swaziland –
(a) alcoholic beverages of all kinds other than traditional beer 25%
(b) traditional beer…14%
(c) manufactured tobacco in the form of cigars, cheroots, cigarillos, cigarettes, pipe tobacco and snuff…25%
(d) any other taxable manufactured goods…14%2.
The first sale of the under-mentioned goods manufactured in Swaziland –
(a) alcoholic beverages of all kinds other than traditional beer…25%
(b) traditional beer…14%
(c ) manufactured tobacco in the form of cigars, cheroots, cigarillos, cigarettes, pipe tobacco and snuff…25%
(d) Any other taxable manufactured goods…14%
3. Taxable services specified in the Fourth Schedule to this Act…14%
4. Accommodation let and food supplied by the hotel or restaurant…14%
5. Goods imported, manufactured or produced by any person applied for own use, namely:
(a) alcoholic beverages of all kinds other than traditional beer .25%
(b) manufactured tobacco in the form of cigars cheroots, cigarillos, cigarettes, pipe tobacco and snuff…25%
(c) any other taxable imported, manufactured or produced goods.14%
8. List of Goods/Services at Positive Rates Other Than Standard
9. List of Exemptions
Supply of the following goods and services does not attract sales tax, namely:
(a) Such goods imported into Swaziland as are specified in Second Schedule.
(b) Such goods manufactured or produced in Swaziland as are specified in the Third Schedule.
(c) The sale of goods for export from Swaziland.
(d) Such services as are specified in item B of the Fourth Schedule.
(e) The re-importation of goods liable to sales tax in cases where it is shown to the satisfaction of the Commissioner that the goods previously exported from Swaziland are substantially in the same state as they were originally exported and that sales tax payable at the time of original importation was paid.
(f) Such other taxable transactions as the Minister for Finance may direct.
10. Tax Period
See 4, above
11. Deferement Schemes/Special Schemes
12. Beneficiary of Revenue
B. Excise Taxes Alcohol (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Alcohol levy, Customs and Excise Act 21 of 1971
2. Department Responsible for Administration
Department of Customs and Excise
3. Taxpayer
Importer / local manufacturer
4. Included in Tax Base
Excise duty is levied on certain manufactured goods as well as their imported equivalents. The duty is levied as a specific duty in tobacco, liquor and hydro-carbons.
5. Tax Rate (Tariff Heading, Description, Rate Per Litre or Per Litre of Absolute Alcohol)
A specific rate of duty is levied on liquor, tobacco and hydro-carbons.The following is thus a duty structure that is normally reviewed on an annual basis in respect of the under-listed excisable goods as at 10/04/2002:
Goods Description Quantity Duty Rate
Malt beer 340 ml 43.57 c
Sorghum beer 1 litre 7.82 c
Spirits (average) 750 ml 1184.00 c
Sparkling wine 1 litre 227.60 c
Fortified wine 1 litre 182.50 c
Unfortified wine 1 litre 80.70 c
Cigarettes 20 cigarettes 350.80 c
Pipe tobacco 25 grams 131.30 c
6. Rebates
7. Beneficiary of Revenue
Swaziland Government
C. Excise Taxes Tobacco Products (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate (Tariff Heading, Description, Rate Per Kilogramme, or Per 10 cigarettes/Cigars)
6. Rebates
7. Beneficiary of Revenue
D. Excise Taxes Fuel/Hydrocarbon Oils (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Fuel Oil Levy, Fuel Oil Levy Act of 1980
2. Department Responsible for Administration
Ministry of Natural Resources and Energy
3. Taxpayer
Importer of Fuel
4. Included in Tax Base
1. Fuel Tax which goes to the Consolidated Fund
2. Fuel Oil Levy which accrues to the Strategic Oil Reserve Fund
3. Motor Vehicle Accident Levy goes to the MVA Fund which compensates road accident victims
4. Customs and Excise Duty forms part of the SACU receipts and it goes to the Consolidated Fund
5. Sales Tax, which goes to the Consolidated Fund
5. Tax Rate (Rate of Duty Per Litre, Total Tax Burden as a Percentage of Retail Price)
Petrols (Leaded and Unleaded cents per litre
Diesel
Sales Tax
14% of Import Parity
14% of Import Parity
Fuel Tax
40 cents per litre
40 cents per litre
Fuel Oil Levy
5 cents per litre
5 cents per litre
MVA
16 cents per litre
16 cents per litre
Customs and Excise
4 cents per litre
4 cents per litre
6. Rebates/Concessions/Special Schemes
National Government
7. Beneficiary of Revenue
Stated in No. 4 above
E. Excise Taxes - Non Alcoholic Bevarages/Other (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate (Tariff Heading, Rate Per Litre, or Per Kilogramme, or Per Unit)
6. Rebates
7. Beneficiary of Revenue
F. Excise Duty on Luxury Goods - Ad Valorem (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Ad valorem customs and ad valorem excise duties, Customs and Excise Act 2 of 1971
2. Department Responsible for Administration
Department of Customs and Excise
3. Taxpayer
Importer / Local manufacturer
4. Included in Tax Base
ons exist under Section 75 of this Act where excise duty is not payable on excisable goods intended for export or for farming, forestry and certain manufacturing activities.
5. Tax Rate
Ad Valorem excise and customs duties:
Goods Description
Gaming machines, photocopiers, printers, vending and office machines (including computers, facsimiles and modems) and television sets
Motorcycles (200-800cc)
Clocks, firearms, motorcycles (exceeding 800 cc) and photographic films
Hair care products, perfumes, skincare products, cosmetics and toiletries, video equipment, hi-fi equipment, optical lenses, photographic/cinematographic equipment, pre-recorded tapes and compact discs
Motor vehicles
Tax Rate
|
Excise |
Customs |
|
5% |
5% |
|
5% |
5% |
|
7% |
7% |
|
7% |
7% |
|
Max. 20% |
Max. 20% |
6. Special Methods (to deal with the specific needs of some industries)
7. Beneficiary of Revenue
SWAZILAND GOVERNMENT
G. Excise Duty on Other Goods (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate (specify ad valorem or specific)
6. Special Methods (to deal with the specific needs of some industries)
7. Beneficiary of Revenue
H. Air Passenger Duty/ Departure Tax (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate
6. Exemptions
7. Beneficiary of Revenue
I. Financial Transaction Taxes/Stamp Duty (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
Stamp Duty, Stamp Duty Act No 37 of 1970
2. Department Responsible for Administration
Treasury Department
3. Taxpayer
The persons respectively liable for duty and required to stamp an instrument are in the case of :
a. an affidavit or solemn or attested declaration - the person making it
b. an agreement or contract - the persons
c. a bill of exchange or promissory note - the drawer or maker
d. a bond - the person giving or passing the bond or in the case of a substitution of a debtor in respect of a bond, the person substituted as a debtor
e. a cession - the cedent
f. a lease or agreement of lease in respect of immovable property - the lessor
g. the original issue of a marketable security - the company or corporate body issuing the marketable security
h. the registration of transfer of a marketable security - the transferee
i. the cancellation of company shares, as contemplated in section 24(12) of the schedule - the company the shares of which are cancelled
A policy of insurance - the person executing it and the person insured
Provided that the duty on any policy or certificate of insurance or any endorsement thereto or renewal thereof may be recovered by the insurer from the policy holder or other person by whom the relevant premium is payable
j. a receipt - the person giving it
k. an instrument on which a fee is payable - the person to whom it is issued or by whom it is lodged
l. any other instrument in respect of which no specific provision is made - the person executing the instrument
4. Included in Tax Base
5. Tax Rate
Stamp Duty is levied at the rates indicated as follows:
1. In respect of every deponent or declaration E1.00
2. Agreement or contract in respect of which no other duty is specifically provided E1.00
3. Antenuptial contract E8.00
4. Arbitration or award - every deed of submission and every award E12.00
5. Authentication certificate given by a public officer in his public capacity or under his official seal testifying to the identity of a person or the authenticity of a signature on an instrument outside Swaziland irrespective of the number of signatures or seals required to effect the authenication E4.00
6. Bill of exchange or promissory note -
Payable - a. on demand
b. otherwise than on demand for every E100 or part thereof of the amount or value
7. Bill of Lading for the carriage or transport of any goods by sea -
For every bill or copy or duplicate thereof
8. Bond -
1. A mortgage bond hypothecating immovable property or an interest therein and a general or special bond passed before a notary public -
a. where the total amount of the debt secured or to be secured does not exceed E4,000: for every E100 or part thereof
b. where the total amount of debt secured exceeds E30,000 but does not exceed E60,000 for every E100 or part thereof
c. where the total amount of the debt secured or to be secured exceeds E60,000 for every E100 or part thereof
2. A bond mentioned in (1) which is executed by way of suretyship only and is collateral to a duly stamped bond for the same debt or obligation executed by the principal debtor or obligator: for every E100 or part thereof of the debt secured or to be secured.
3. A bond mentioned in (1) which is auxiliary or collateral to or substituted for a previously made and duly stamped for the same debt or obligation and which is executed by the same person - a duty at the rates mentioned in (1) but not exceeding.
4. Cession of a bond mentioned in (1) or of any bond substituted therefore -
a. where the amount remaining due does not exceed E4,000 for every E100 or part thereof
b. where the amount remaining due exceeds E4,000: for every E100 or part thereof
5. Cession of an auxiliary or collateral bond mentioned in (2) or (3)
The like duty as is chargeable on the bond
6. Substitution of debtor in respect of a bond mentioned in (1).
The like duty as is chargeable on a cession of the bond
In determining, for the purposes of this item, the amount of a debt secured or to be secured or remaining due under a bond, a sum separately secured by the bond to cover costs incurrec in connection with the debt shall be excluded from the amount
6. Exemptions
7. Beneficiary of Revenue
National Government
J. Payroll Taxes/Social Security Taxes (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
Swaziland National Provident Fund Order, 1974
2. Department Responsible for Administration
Swaziland National Provident Fund (a Parastatal)
3. Taxpayer
All employees (except civil servants unless they opt for voluntary contribution) and employers; religious organisations
4. Included in Tax Base
Monthly contributions by employees and employers. Employers contribut an equal amount and the combined contribution should not exceed E600 per month
5. Tax Rate
Employees contribute 10% of their gross salary per month
6. Exemptions
7. Beneficiary of Revenue
K. Other Taxes (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
Motor Vehicles Licence
2. Department Responsible for Administration
Treasury Department
3. Taxpayer
Vehicle owners
4. Included in Tax Base
Registration fees, test fees, and licence fees for motor cycles, tractors, earth moving equipment and motor vehicles
5. Tax Rate
Licence fees for -
Motor cycle E20 per annum
Tractors E20 per annum
Earth moving equipment E100 per annum
Motor Vehicles
1 - 1000kg E25 - E55
1001 - 2000kg E65 - E120
2001 - 3000kg E145 - E195
3001 - 4000kg E210 - E265
4001 - 5000kg E270 - E315
5001 - 6000kg E330 - E375
6001 - 7000kg E390 - E435
7001 - 8000kg E450 - E495
8001 - 9000kg E525 - E555
9001 - 10000kg E585 - E615
10001 - 11000kg E645 - E675
11001 - 12000kg E705 - E735
12001 - 13000kg E765 - E795
In addition for every 500kg or part thereof an additional E30 is charged
These fees are currently being reviewed.
6. Exemptions/Rebates/Deferments/Special Schemes
7. Beneficiary of Revenue
L. Other Taxes 2 (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate
6. Exemptions/Rebates/Deferments/Special Schemes
7. Beneficiary of Revenue