Incentives

The Government of Swaziland encourages foreign and local investment in virtually all business sectors and offers the following incentives to lessen the cost of doing business:

Tax Incentives

  • Reduced Corporate Tax of 10% for 10 years to both local and foreign investments in manufacturing, mining, international services and tourism. A company eligible for this concession may also be provided with an exemption from withholding taxes on dividends during the same 10-year tax period.
  • Accelerated Capital Allowances as follows:
    • Industrial plant and machinery used in manufacturing: 50% initial allowance in the first year of use and a 10% annual allowance on the reducing balance method over the lifetime of the asset.
    • Hotel construction and improvement allowance: 50% of the cost is deductible in the year in which it is incurred on the construction of a new hotel or beneficial improvements to an existing hotel. In addition, an annual allowance of 4% of such expenditure is allowed.
    • Buildings (and improvements thereto) used to house manufacturing plant and machinery: 40% initial allowance in the first year of use and an additional 4% allowance.
    • Employee housing allowance: 20% in the first year and 10% per annum for the next 8 years.
    • Farming: Certain capital expenditure is tax-deductible, but the total deduction in any year of assessment is limited to 30% of the gross income derived by the farmer from farming operations. Any amount disallowed is carried forward and added to expenditure in the succeeding year.
  • Unlimited Provision for Losses - losses may be carried forward indefinitely.
  • Duty free Access on Capital Goods imported as intermediate goods (to be used as inputs for final products).
  • Duty Free Access on Raw Materials used for the production of goods exported outside the Southern Africa Customs Union (SACU).
  • Full Repatriation of Profits and dividends in any currency without permission and without limitation after payment of income taxes. Repatriation is also allowed for capital repayments and salaries of expatriates after payment of income taxes.
  • Employee Training Allowance of 100% of the cost to be offset against tax liabilities.
  • Double Taxation Agreements offering relief for taxes paid abroad on income also subject to Swazi taxation.

Non tax incentives

  • Export Credit Guarantee Scheme through which the Central Bank of Swaziland provides an Export Loan Guarantee scheme and a Small Scale Loan Guarantee scheme which grants guarantees to loans provided by commercial banks.
  • Legal Protection of Investments from undue expropriation under the Swaziland Investment Promotion Act of 1998 and the Constitution of Swaziland. In addition, Swaziland is a member of Multilateral Investment Guarantee Agency (MIGA) of the World Bank which provides added legal protection of foreign investments of member countries from expropriation.
  • Five Year Work and Residence Permits for expatriate Directors, Senior Management and key technical personnel of new enterprises.
  • Subsidized Rental on Government Factory Shells at rates dependent upon their location.