Ezulwini – Private schools in Eswatini that are registered as companies are required to pay tax just like any other business operating in the country, the Eswatini Revenue Service (ERS) has confirmed.
The tax authority made this clear following public concern over how the private school sector is regulated and assessed for tax compliance. ERS Director of Communications and Marketing Ntobeko Manana said the determining factor is not that an institution is a school, but rather how it is legally registered and structured.
Manana said private schools operating as companies are subject to Corporate Income Tax on profits, Pay-As-You-Earn (PAYE) on employee salaries and other relevant taxes depending on their business activities. Tax liability is calculated on taxable income, which is derived after deducting allowable expenses and exempt income from gross earnings, with the standard corporate tax rate then applied to determine what is payable. 
However, ERS noted that the tax position is not uniform across all private education providers. Some institutions are registered as trusts, non-governmental organisations or non-profit entities, which may qualify for exemptions under specific legal provisions. Even so, Manana said such exemptions are not automatic.
Institutions seeking tax-exempt status must apply annually to the commissioner general and demonstrate that they meet the requirements set out under the Income Tax Order. Educational institutions of a public character may be recognised as exempt organisations, but only upon formal approval and continued compliance with the conditions attached to that status.
ERS further indicated that during registration and compliance monitoring, taxpayers are profiled according to their legal structure, which determines their obligations under the tax laws. Regardless of structure, all entities are required to register with the tax authority and comply with relevant legislation.
On enforcement, ERS said compliance activities are carried out on a risk-based approach across all sectors of the economy, including taxpayer education, audits, inspections and general compliance checks.
