Graded tax is an annual levy payable by adults in Eswatini (Swaziland). Unemployed male adults (18 years and over) are expected to pay E4.50 per annum, while unemployed females are not required to pay anything. Employed adults (both male and female) pay E18 per annum.
Members of Parliament have abolished the graded tax legislation, which was put in place in 1967 as one of the revenue generating instruments for the country.
Eswatini’s Parliament has passed the Graded Tax (Repeal) Act 2023, resulting in the repeal of the Graded Tax Act, effective from 15 September 2023. As of this date, employers are no longer required to withhold the graded tax annual levy. The effects will only be felt in July 2024, however.
The PAYE 16 tax report must be updated to ensure no graded tax deduction will calculate next year in July 2024.
An amendment was made stating that official documents bearing a graded tax number obtained under the provisions of the repealed Act, which were obtained immediately prior to the Act’s order, will be recognised as valid for five years following the Act’s commencement, after which the graded tax number will be replaced by the PIN number.
Please note that the Graded Tax (Repeal) Act 2023 is not yet publicly available.
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