BY THEMBA ZWANE
EZULWINI – The Eswatini Revenue Service (ERS) has launched an investigation into E4.8 billion transferred out of Eswatini over the past 12 months, amid concerns about widespread tax non-compliance.
Commissioner General Brightwell Nkambule revealed that of the E4.8 billion moved offshore, only E33 million was declared to the tax authority.
“The remainder largely involves entities not registered for tax, entities filing nil returns and entities declaring figures inconsistent with transferred amounts,” Nkambule said. “This is not a marginal compliance issue. It is systemic tax evasion. And it is a problem the ERS cannot resolve alone. We require the collaboration of financial institutions and other ecosystem partners to resolve this problem.”
Nkambule explained that the Tax Clearance Certificate (TCC) Regulations became effective on 27 December 2022. In September 2023, ERS issued public notices to alert taxpayers and allow adequate time for preparation before full enforcement.
He said implementation was deliberately delayed to streamline systems and avoid unnecessary disruption. During this period, ERS simplified processes, digitised the application system and enabled 24-hour online access to the TCC platform. Verification platforms for authorised third parties have been developed, and advanced data analytics tools introduced to detect discrepancies across business transactions.
“TCCs are currently available online 24 hours a day. Verification platforms are accessible to authorised institutions, and enhanced data analytics allows detection of inconsistencies,” Nkambule said. “The system is ready, and ERS is engaging stakeholders.”
He assured the public that the framework would be implemented responsibly to avoid disrupting banking operations. For transfers within the Common Monetary Area (CMA), ERS will initially conduct post-transaction verification. For transfers outside the CMA, verification will occur prior to processing. These measures will be strengthened progressively.
“Our objective is not disruption. Our objective is integrity,” Nkambule emphasised.
He called on ecosystem partners to support the initiative. Banks and financial service providers are encouraged to verify tax compliance before processing offshore transfers. Businesses and individuals are urged to check their compliance status proactively, while procuring entities are advised to require TCCs for qualifying tenders and purchase orders. Taxpayer representative bodies are also encouraged to support their members in regularising compliance obligations.
Nkambule expressed appreciation for the cooperation already shown by several stakeholders, including the Procurement Regulator, commercial banks, Business Eswatini, FESBEC, BUFE, Commercial Amadoda and others. Engagement with additional partners is ongoing.
The TCC Regulations apply to 13 specific transactions, including renewal or transfer of trade licences, property transfers, company registration or deregistration, vehicle registrations, tendering for goods and services exceeding E20,000, share transfers, renewal of temporary residence permits, performances by non-resident entertainers or sportspersons, registration for importation of goods, offshore fund transfers, distribution of deceased estates and other instances where a tax compliance certificate is required by law or policy.
The ERS maintains that strengthening compliance across these transaction points is essential to protecting public revenue and safeguarding the integrity of Eswatini’s fiscal system.
