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.