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.
|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 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.The year of assessment for taxpayers covers a period of 12 months. For individuals and trusts, the commencement date of the year of assessment starts on 1 March and ends on the 28/29 February each year. For Companies and Close Corporations the year of assessment is the applicable financial year.
Income tax returns are available annually after the end of each year of assessment to registered taxpayers, and must be completed and submitted to SARS each year.
The “Tax Season” commences 1 July each year, and the deadlines for the submission of returns are:
Individual (ITR12) and Trust (IT12TR) returns (non-provisional taxpayers): Last working day of September for postal submission (the paper version) that can be posted or submitted at your local SARS branch in the designated drop box; or
The last working day in November for eFiling via your PC or laptop or done electronically by a SARS consultant at a SARS branch. Please note that for the 2009/2010 year of assessment, SARS has announced the 26th November 2010 as the deadline for electronic submissions of Income Tax Returns.
Individual (ITR12) and Trust (IT12TR) returns (provisional taxpayers): Provisional taxpayers have until the 31 January 2011 to submit their completed ITR12 income return to SARS.
Company/CC (IT14) returns: Must be completed and submitted within 12 months after the financial year end of the company/close corporation.