Setting up Business in Swaziland 08. Individuals
8. INDIVIDUALS
8.1 Would the company be able to employ non-Swazi citizens?
· Yes, subject to work permit.
· It is usually not a difficult task obtaining a work permit owing to the shortage of expertise in the country. Expatriates offering specialised skills in certain areas are welcome in Swaziland as it is hoped to gain their service in promotion of economic development as well as to educate local people. People coming from a large number of African countries do not require a visa to enter Swaziland.
· Personal Identification Numbers (PIN) are required for all residents of Swaziland over sixteen years of age, whether citizens or not. Eventually all business and banking facilities will require these numbers.
8.2 Would a non-resident employee be taxed on his remuneration? What are the rates of tax? Are there any concessions?
The income of a non-resident derived from Swaziland or deemed to be derived from Swaziland is computed in the same manner as that of a resident (see 7.2 above).
However, the tax payable by a non-resident individual may not be less than 10% of taxable income.
8.3 What are the registration and filing requirements? Would you be able to assist in this regard, and what would the cost be?
See 7.2 above.
Our offices in Mbabane would be able to assist in this regard.
8.4 Can remuneration packages be structured tax effectively? Could you assist in this regard, and what would the cost be?
· The annual value of any benefit or advantage accruing by way of employment is part of gross income of an employee. There is no advantage in structuring a remuneration package as any benefits would be taxed at 100%.
8.5 Is it possible for the employer to provide the employee with housing? This could include the provision of servants as well. Would this attract fringe benefits tax? Could the employer provide the employee with a motor vehicle, and would this attract fringe benefits tax? Similarly, could the employer pay for security at the house and the provision of a telephone, and would this attract fringe benefits tax? Could the employer contribute towards the costs of sending the employee's children to school/university, even where these institutions are outside your country? Does this give rise to a fringe benefit?
Are there any other fringe benefits that should be considered?
See 9.4 above.
8.6 Would there be any restrictions on the non-resident remitting his after-tax salary to his country of residence?
· An expatriate may remit 100 % gross income. However, an application must be made with the Central Bank for approval.
8.7 Would it be possible to escape tax on remuneration payable to a non-resident by paying it outside your country?
No, as Swaziland income tax is based on source, remuneration will be taxable in Swaziland irrespective of where payment is made.
8.8 Are there any requirements as to residence permits and/or work permits? Could you assist in this regard and what would the cost be? If you cannot assist can you direct us to the appropriate person/government department?
· All foreign nationals taking up employment in Swaziland require a work permit. Employers must apply to the Immigration Officer for such a permit.
· Also, see 9.1 above.
8.9 Would the non-resident be taxed on investment income in your country/outside your country?
Only Swaziland sourced income would be subject to Swaziland tax, therefore dividends or interest earned outside of Swaziland would not be liable for Swaziland tax. (however w.e.f. 1 July 2001, interest earned from a source outside Swaziland, will be deemed to be from a source within Swaziland however credit for any foreign tax will be given)
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