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Eswatini Introduces Reduced Corporate Tax Rate, an Interest Deduction Restriction, New Transfer Pricing Rules, and Other Income Tax Changes

29 December 2023

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Approved Changes

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Eswatini (formerly Swaziland)

According to recent reports, Eswatini published the Income Tax (Amendment) Act 2023 on 20 October 2023, which includes several important tax changes. The main changes include: The corporate tax rate is reduced from 27.5% to 25%; The withholding tax rate on interest paid to non-resident companies is increased from 10% to 15%; The branch profits tax imposed on repatriated income to neighboring countries is increased from 12.5% to 15%, in line with the standard rate for other countries; A final domestic withholding tax at a rate of 10% is introduced on dividends and interest paid to residents from societal shares...