In South Africa, you are liable to pay income tax if you earn more than: R95 750 and you are younger than 65 years. If you are 65 or older but younger than 75 years old, the tax threshold (i.e. the amount above which income tax becomes payable) is R148 217.
- For taxpayers aged 75 years and older, this threshold is R165 689.
A tax table is a chart that displays the amount of tax due based on income received. The tax rate in the relevant tables may be shown as an amount, a percentage rate, or a combination of both.
Tax Table 2023/2024
| Taxable Income (R) | Rate of Tax (R) |
| 1 – 237 000 | 18% of taxable income |
| 237 101 – 370 500 | 42 678 + 26% of taxable income above 237 100 |
| 370 501 – 512 800 | 77 362 + 31% of taxable income above 370 500 |
| 512 801 – 673 000 | 121 475 + 36% of taxable income above 512 800 |
| 673 001 – 857 900 | 179 147 + 39% of taxable income above 673 000 |
| 857 901 – 1 817 000 | 251 258 + 41% of taxable income above 857 900 |
| 1 817 001 and above | 644 489 + 45% of taxable income above 1 817 000 |
The higher your taxable income, the more tax you are due to pay. Your taxable income is your profit from your business less any taxable deductions that are awarded to you as a Sole Trader.
The deductions that you can utilise include Retirement Annuities, Donations to a Public Benefit Organisation (PBO) and Medical Expenses. These deductions are all calculated differently with different limitations.Retirement fund lump sum benefits consist of lump sums from a pension, pension preservation, provident, provident preservation or retirement annuity fund on death, retirement, or termination of employment due to attaining the age of 55 years, sickness, accident, injury, incapacity, redundancy, or termination of the employer’s trade.
Tax for companies and close corporation
A private company is seen as a legal person in South Africa. These are profit companies and non-profit companies which can be clubs, churches and other charitable organisations.
Profit companies are the most commonly used entity type in South Africa and are the easiest to form. Private companies are mainly owner-run businesses.
Close corporations are another type of entity that were used previously and were very similar to companies, but they can no longer be registered.
For the year ending on any date on or after 31 march 2023.
Small Business Corporations Tax Table
A small bussiness corporation is tax differently and there are major tax benefits for companies that qualify. However, there are strict rules which need to be met before an entity can qualify as a Small Business Corporation. Here are the requirements:
- Must be a corporate entity (Close Corporation, Private Company or Personal Liability Company).
- All shareholders of the entity must all be natural persons.
- The entity may not have a turnover of more than R 20 million.
- Shareholders may not hold shares in other companies.
- Entity may not be a personal service provider.
For the year of assessment 1st April 2023 to 31st March 2024:
| Taxable Income (R) | Rate of Tax (R) |
| 1 – 95 750 | 0% of taxable income |
| 95 751 – 365 000 | 7% of taxable income above 95 750 |
| 365 001 – 550 000 | 18 848 + 21% of taxable income above 365 000 |
| 550 001 and above | 57 698 + 27% of the amount above 550 000 |
For companies, close corporations, personal liability companies and those which qualify as a Small Business Corporation, your Net Profit on which your tax is payable is your total taxable income (excluding any capital proceeds) less any qualified deductions and special allowances.
Once you come to your Net Taxable Income