Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

April 22, 2022

Eswatini presents 2022 Budget

Eswatini’s Finance Minister, Neal Rijkenberg, tabled his annual Budget for the 2022/2023 financial year with the House of Assembly in February 2022. Themed “transformation through economic stability,” the Budget introduces tax base-broadening measures as the Kingdom looks to a modest rebound in economic growth in its medium-term outlook.

Economic highlights

  • The 2022/23 deficit is projected to be SZL3.8 billion, or 4.8% of Gross Domestic Product (GDP), an improvement to the 2020/21 budget deficit of 6.5%.

  • Government revenue (excluding grants) is expected to reach 23.8% of GDP (a 2% decrease from 2020/21).

  • In January 2022, the Central Bank raised its discount rate from 3.75% to 4%.

Fiscal legislation

The following proposed tax changes were announced for 2022/2023:

  • Clear signaling of a policy shift by the Kingdom from a territorial taxation system to a worldwide taxation system for qualifying tax residents.

  • Reduction of the corporate tax headline rate from 27.5% to 25% to provide relief for business and stimulate growth. The proposed corporate tax rate reduction will be funded by limiting loss carryforward balances, reviewing the initial allowances regime, revising PAYE late submission penalties, and increasing interest withholding tax rates from 10% to 15% for nonresidents.

  • Introduction of Capital Gains Tax for business as an anti-avoidance measure.

  • Lifting the minimum individual taxable threshold from SZL3,500 to SZL4,000 per month. This measure will be funded by increasing the tax rate at the upper bracket (representing 20% of the taxpayer base) from 33% to 36%.

  • A presumptive tax regime for small and medium-sized enterprises will be introduced to reduce the administrative burden on small and medium-sized businesses.

  • Amendments to the Value Added Tax (VAT) regime to reconsider non-vatable items that are “not pro-poor” and introduce standard-rate VAT on non-domestic electricity consumption.


For additional information with respect to this Alert, please contact the following:

Ernst & Young Advisory Services (Pty) Ltd

Ernst & Young Société d’Avocats, Pan African Tax – Transfer Pricing Desk, Paris

Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London

Ernst & Young LLP (United States), Pan African Tax Desk, New York


The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more