Setting up Business in Swaziland 03. Indirect Taxes
3. INDIRECT TAXES
3.1 Are there any indirect taxes - GST/VAT, Customs & Excise, Stamp Duties, Transfer Duties? How are they applied and at what rates?
· Swaziland has no Estate Duty or any other Succession Duties (such as gift taxes or net worth taxes).
· Transfer Duty
A duty is levied on the transfer of immovable property and is levied on the purchase price or value of the property transferred. The rates are as follows:
2% on first E40 000
4% on next E20 000
6% on amount exceeding E60 000
· Sales Tax
Sales tax is levied on the first sale of goods (imported or manufactured), services, hotel accommodation and restaurant meals. The rate is 14% of the value of most taxable items and services, and 20% on liquor.
· Excise Duties
Various excise duties are levied on both imported and local goods such as tobacco, vinegar, alcohol and petroleum products.
· Customs Duties
Swaziland adheres to the Customs Co-operation Council Nomenclature system and is a member of the Southern Africa Customs Union Agreement between South Africa, Swaziland,
Lesotho and Botswana. Duties are levied at the first port or place of importation into the common customs area.
· Assessment Rates
Local authorities levy a tax on the value of fixed properties within their jurisdiction.
· Graded Tax
Graded tax amounting to E1,50 per month is payable by each employee. This amount is not refundable.
· Stamp Duty
Certain legal documents require stamping with varying rates of stamp duties. These include company shares, stock and debenture certificates and share transfer forms for which the current rate is 1.5% of the value of the consideration given.
3.2 What are the registration, filing and payment requirements in respect of a company and a branch? Can you assist in this regard, and at what cost? If not, can you recommend someone?
· Sales Tax
Taxable persons are obliged to submit monthly returns. Tax payable must be remitted to the Commissioner for Customs and Excise. Tax becomes payable on the sale of goods and services. In the case of imported goods, tax is payable at the time of importation or when cleared from Customs, whichever is later. Alternatively application can be made with the Customs and Excise office for a sales tax number, whereby goods can be imported under cover of a certificate, which must be produced at the point of entry. The onus is on the company or individual to ensure that the necessary documentation (Form STR3 and STR4) are submitted on a monthly basis together with copies of the Form CCA1, invoices and payment.
· Customs Duties
Customs duties are levied on imported goods and are payable by the importer.
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