Ezulwini – The Eswatini Revenue Service (ERS) has provided detailed guidance on provisional tax payments for the 2025 tax year to help taxpayers manage their income tax obligations effectively.
Provisional tax allows taxpayers to pay estimated income tax in advance through two instalments during the year. These payments are credited against the final tax liability once the annual Income Tax Return is filed, preventing a large tax bill at the end of the year.
Taxpayers calculate the first instalment as 50% of their taxable income from the previous tax year. The second instalment is the balance of the estimated annual taxable income minus the first instalment. If the provisional tax paid falls short of the final amount owed, a third instalment is required to settle the balance.
Provisional tax payments are important because they reduce the final tax liability and help avoid large lump-sum payments during assessment. Timely payments also prevent interest charges of 18% per annum, and failure to pay can block submission of income tax returns.
Provisional taxpayers include individuals earning non-salary income such as sole traders, directors of private companies in Eswatini, and companies or persons notified by the Commissioner as provisional taxpayers.
Non-compliance penalties include an underestimation penalty if estimated taxable income is below 90% of actual income and a late payment penalty of 20% on unpaid provisional tax.
Taxpayers can submit their provisional tax returns online via the ERS TaxEase system by logging in, accessing their filing history, selecting provisional tax, editing the submission, and submitting after review and consent.
For assistance, taxpayers may contact the Eswatini Revenue Service at 2406 4050, WhatsApp 7606 3735, or email info@ers.org.sz.
Discussion about this post