South Africa Revenue Requirements
Destination: South Africa
The tax year is 1st March to 28th (or 29th) February. If you are an employee you will be registered for PAYE (Pay as You Earn) and the company you are working for will make the necessary tax deductions and pay you a net salary.
Individuals are deemed to be resident in South Africa for tax purposes if they normally live in the country or are in South Africa for more than 183 days a year.
Tax is payable in installments by companies, close corporations and those individuals who are classified as provisional taxpayers (e.g. directors of companies and members of close corporations). Individuals make two provisional payments based on estimated tax liability: the first due six months after the beginning of the assessment year the second at the end of the assessment year.
To find out more about the South African tax system visit www.sars.gov.za.
The tax you will pay
The effective income tax rate in South Africa is generally quite high compared to other countries around the world. The table below gives the tax rates that apply to individuals for the financial year (2008-2009):
Personal Income Tax Rates:
| Taxable Income | Tax on this income (ZAR) |
|---|---|
| 0 – 122,000 | 18% of each R |
| 122,001 – 195,000 | R21 960 + 25% of the amount above R122,000 |
| 195,001 – 270,000 | R40 210 + 30% of the amount above R195,000 |
| 270,001 – 380,000 | R62 710 + 35% of the amount above R270,000 |
| 380,001 – 490,000 | R101 210 + 38% of the amount above R380,000 |
| 490,001 and above | R143,010 + 40% of the amount above R490,000 |