Pigg’s Peak- The Eswatini Revenue Service (ERS) has clarified that the Tax Compliance Certificate (TCC) is not intended to push emaSwati out of business but to ensure compliance with existing tax laws.
This came during the Media Tax and Customs Academy currently underway at Pigg’s Peak Hotel, where the ERS is hosting members of the Eswatini Editors Forum and journalists for a two day engagement running from March 13 to 14.
The TCC emerged as the elephant in the room during the first day of discussions, with The Nation Magazine Editor Bheki Makhubu describing the certificate as a possible constraint to trade, particularly for small businesses.
However, ERS Commissioner General Brightwell Nkambule dismissed concerns that the requirement was designed to suffocate businesses. He said the revenue authority remains open to engaging emaSwati on how they can comply with the regulations.
Nkambule emphasised that the TCC was not a new tax system and that the ERS was not widening its tax collection net as some people had suggested.
“The Income Tax (Compliance Certificate) Regulations were passed in 2022. This is not a new tax, it is simply the implementation of existing regulations to ensure compliance with the law,” said Nkhambule.
He explained that in the past it was largely the ERS that ensured companies complied with tax laws, but the TCC regulations would now allow government entities and parastatals to play a role in enforcing compliance.
Under the regulations, a Tax Compliance Certificate will now be required for several transactions including the renewal or transfer of business licences, the transfer of immovable property, company registration or deregistration, the first registration of motor vehicles and registration of second hand vehicles.
The certificate will also be required when tendering to supply goods or services to government or parastatals above E20 000, during the transfer of company shares, registration for importation of goods, and when transferring funds from local financial institutions to offshore accounts.
Nkambule said the intention was to strengthen compliance across the economy and ensure that all companies operating in the country abide by tax regulations.
He stressed that the ERS remained open to emaSwati who are willing to make a commitment to comply with the TCC requirements.
“We are open to engaging emaSwati who want to comply and we encourage them to approach us so that we can assist them,” he said.
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