Swaziland

Corporate - Income determination

Last reviewed - 21 April 2020

Inventory valuation

Inventory valuation is not specific but is effectively at the lower of cost (i.e. first in first out [FIFO] or average cost) and net realisable value.

Capital gains

Capital gains are not subject to income tax, provided it can be demonstrated that the gains are of a capital and not an income nature (i.e. not recurring transactions).

Dividend income

Dividend income is taxable via withholding tax (WHT) for non-residents (see the Withholding taxes section). No tax is due if received from another local company.

Inter-company dividends

Inter-company dividends are not subject to income tax.

Stock dividends

Stock dividends are paid out of taxed profits. Such dividends are not subject to income tax when received by a local company, but they are subject to taxation in the hands of local individual taxpayers at the rate of 10%.

Interest income

Interest income sourced in Swaziland is taxable.

Foreign income

Foreign income is not subject to income tax unless it is deemed to be from a Swaziland source.