Ezulwini – The Eswatini Revenue Service (ERS) will begin auditing churches amid suspicions that some individuals are using religious institutions to evade taxes and accumulate personal wealth, Finance Minister Neal Rijkenberg has confirmed.
Speaking during a press conference at the ERS Headquarters in Ezulwini on Wednesday, where he launched the 2025 Income Filing Season and Compliance Improvement Plan (CIP), Rijkenberg said there were growing concerns that some people were running commercial operations under the guise of church structures.
“We have noted that certain people accumulate wealth and operate businesses while hiding under church organisations, which are exempt from tax. We will start cracking down to ensure everything is done in accordance with the law and that due taxes are paid,” the minister stated.
Rijkenberg said the audits would cover all income-generating activities linked to churches, including pay-as-you-earn (PAYE) for pastors and employees. He stressed that while churches are generally tax-exempt, any form of personal benefit or gain received by individuals from church resources must be declared and taxed.
“For instance, when congregants buy a pastor a car, or when offerings are raised specifically for the pastor’s personal upkeep commonly known as imali yesondlo semfundisi those are personal gains and must be taxed,” he explained.
The minister emphasised that the move was not meant to target churches unfairly, but to promote fairness and transparency in the tax system.
“This is about ensuring that everyone pays their fair share. Religious organisations play an important social role, but that cannot be used as a cover for tax evasion,” Rijkenberg added.
ERS Director of Legal Operations Henry Sukati further clarified the legal framework governing church taxation. He explained that under the Income Tax Order of 1975, Section 2, churches are categorised as exempt organisations alongside non-governmental and charity organisations, co-operatives, public educational institutions, and trade unions.
However, Sukati noted that exemption does not grant churches blanket immunity from scrutiny. He said Section 2(b) of the same Order requires that the ERS Commissioner General be satisfied that an organisation genuinely qualifies for exemption.
“It sometimes happens that when the ERS reviews a church’s founding documents, constitution, and financial statements, it becomes clear that the organisation is not purely for public benefit,” Sukati said.
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