INDIVIDUALS AND SPECIAL TRUSTS
Tax rates for the year of assessment: 2022/2023
Tax rates (year of assessment ending 28 February 2023)
Taxable Income (R) | Rate of Tax (R) |
1 – 226 000 | 18% of taxable income |
226 001 – 353 100 | 40 680 + 26% of taxable income above 226 000 |
353 101 – 488 700 | 73 726 + 31% of taxable income above 353 100 |
488 701 – 641 400 | 115 762 + 36% of taxable income above 488 700 |
641 401 – 817 600 | 170 734+ 39% of taxable income above 641 400 |
817 601 – 1 731 600 | 239 452 + 41% of taxable income above 817 600 |
1 731 601 and above | 614 192 + 45% of taxable income above 1 731 600 |
Tax rates for the year of assessment:
2021/2022
Tax rates (year of assessment ending 28 February 2022)
Taxable Income (R) | Rate of Tax (R) |
1 – 216 200 | 18% of taxable income |
216 201 – 337 800 | 35 253 + 26% of taxable income above 195 850 |
337 801 – 467 500 | 63 853+ 31% of taxable income above 305 850 |
467 501 – 613 600 | 110 739 + 36% of taxable income above 467 500 |
613 601 – 782 200 | 163 335 + 39% of taxable income above 613 600 |
782 201 – 1 656 600 | 229 089 + 41% of taxable income above 782 200 |
1 656 601 and above | 587 593 + 45% of taxable income above 1 656 600 |
Tax rebates and thresholds 2022/2023
Age | Rebates (R) | Thresholds (R) | |
Primary (below 65) | 16 425 | 91 | 250 |
Secondary (65 and older) | 9 000 | 141 250 | |
Tertiary (75 and older) | 2 997 | 157 900 |
Tax Rebates and Thresholds 2021/2022
Age | Rebates (R) | Thresholds (R) |
Primary (below 65) | 15 714 | 87 300 |
Secondary (65 and older) | 8 613 | 135 150 |
Tertiary (75 and older) | 2 871 | 151 100 |
Trusts other than special trusts
Tax rates for the year of assessment: 2022/2023
Tax rate (year of assessment ending 28 February 2023) – 45%
Tax rates for the year of assessment: 2021/2022
Tax rate (year of assessment ending 28 February 2022) – 45%
Exemptions
Interest
- Interest from a South African source earned by any natural person under 65 years of age, up to R23 800 (2022: R23 800) per annum, and persons 65 and older, up to R34 500 (2022: R34 500) per annum, is exempt from taxation.
- Interest is exempt where by non-residents who is physically absent from South Africa for at least 182 days during the 12 month period before the interest accrues and the interest bearing debt is not effectively connected to a fixed place of business in South Africa
Tax free savings account
Tax free savings accounts were introduced from 1 March 2015 as a measure to encourage household/individual savings. Individuals will be allowed to open multiple tax-free savings accounts, however, they may only contribute up to a maximum of R 36 000 from 1 March 2021 into these accounts within any given year. A lifetime contribution limit of R500 000 will apply. The returns accruing to these accounts will not be subject to income or dividends tax. Amounts within the tax-free savings accounts may be withdrawn at any time. Where an individual contributes in excess of the prevailing annual or lifetime contribution limit in any year, a "penalty" (additional income tax) of 40 per cent on the amount of excess contribution will be levied by SARS on the individual.
Foreign Dividends
Generally foreign dividends other than those earned by persons who held 10% or more in the foreign company are taxable at 20%.
No deductions are allowed for expenditure to produce foreign dividends.
Dividends from REIT
Dividends paid by a real estate investment trust (REIT) to a resident are subject to income tax. Non-residents in receipt of those dividends are only subject to dividends tax.
Restricted Deductions (Employees)
Employees or holders of office are restricted to deducting the following expenditure from their remuneration.
- Bad debts
- Deductions in respect of contributions to a pension fund or retirement annuity fund
- Donations to certain Public Benefit Organizations
- Doubtful debts allowance
- Home office expense, subject to requirements
- Legal expense
- Refunded awards for services rendered and refunded restraint of trade awards as from 1 March 2008
- Wear and tear allowance
Click here to continue reading . . .
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.