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ERS to audit churches over suspected tax evasion

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Minister for Finance Neal Rijkenberg. (Pics: Nhlanganiso Mkhonta)
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EZULWINI – The Eswatini Revenue Service (ERS) will audit churches over suspicions of tax evasion and accumulation of personal wealth, Finance Minister Neal Rijkenberg confirms.

Speaking during a press conference held yesterday at the ERS Headquarters to launch the 2025 Income Filing Season and Compliance Improvement Plan (CIP), the minister said there was growing concern that some individuals were accumulating personal wealth and running commercial operations under the guise of church structures to avoid paying taxes.

“We have noted that certain people accumulate wealth and operate businesses while hiding under church organisations, which are exempt from tax. We will start cracking down on that to ensure that everything is done in accordance with the law and that all due taxes are paid,” Rijkenberg stated.

The minister explained that the audits would cover all income-generating activities linked to church operations, including pay-as-you-earn (PAYE) for employees and pastors. He said that while churches are generally tax-exempt institutions, any form of personal gain received by individuals from church resources should be treated as taxable income. “For instance, when congregants buy a pastor a car, or when the church raises offerings specifically for the pastor’s personal upkeep – commonly known as imali yesondlo semfundisi – those are personal gains and must be taxed,” Rijkenberg emphasised.

He said the goal was not to target churches unfairly, but to ensure fairness and transparency within the tax system.

“This is about ensuring that everyone pays their fair share. Religious organisations play an important social role, but that cannot be used as a cover for tax evasion,” the minister added.

ERS Director of Legal Operations, Henry Sukati, provided further clarification on the legal framework governing church taxation. He explained that under the Income Tax Order of 1975, Section 2, churches fall under the category of exempt organisations alongside non-governmental organisations (NGOs), charity organisations, co-operatives, public educational institutions, amateur sports bodies and trade unions.

*…

Reports E4.4bn in uncollected taxes

EZULWINI – The 2025 income filing season has opened, revealing Eswatini has E4.4 billion in uncollected taxes, mostly stemming from VAT non-compliance.

Speaking at a press conference held at the Eswatini Revenue Service (ERS) Headquarters, the Finance Minister Neal Rijkenberg unveiled the 2025 Filing Season and the Compliance Improvement Plan (CIP), aimed at closing gaps in tax compliance and strengthening the nation’s revenue base. As part of its modernisation and data-driven approach, the ERS conducted a Tax Gap Analysis to assess the difference between taxes due and taxes actually collected.

An estimated E4.4 billion in taxes remains unpaid, representing revenue that could have been invested in key development priorities such as healthcare, education and infrastructure.

*Full article available in our publication.

Business Federation of Eswatini Chief Operations Officer Mangaliso Maseko, Federation of Eswatini Business Community CEO Ben Simelane and Business Federation of Eswatini Chairperson Thulisile Dladla following proceedings during the press conference.
Business Federation of Eswatini Chief Operations Officer Mangaliso Maseko, Federation of Eswatini Business Community CEO Ben Simelane and Business Federation of Eswatini Chairperson Thulisile Dladla following proceedings during the press conference.
Business Eswatini CEO Nathi Dlamini.
Business Eswatini CEO Nathi Dlamini.
Eswatini Revenue Service Commissioner General Brightwell Nkambule.
Eswatini Revenue Service Commissioner General Brightwell Nkambule.

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Written by
Nhlanganiso Mkhonta

Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.

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