Taxes - Accounting

South Africa

Print the page Click to print the page

Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: VAT = Valued Added Tax (BTW = Belasting op Toegevoegde Waarde in Afrikaans).
Tax rate: 14%
Reduced tax rate: Reduced VAT rates range from 0% (on education services, basic foods, diesel fuel and gasoline, export of Goods and Services) up to the standard rate of 14%. For example, VAT on hotels and retirement hostels is charged at 8.4%.
Other consumption taxes: Public Benefit Organization under Section 30 of South Africa's Income Tax Act is eligible for exclusion from taxation.

Corporate taxes

Tax rate

Corporate tax is payable by South African companies on their worldwide taxable income	28%
Although dividends are exempt from tax in the recipient’s hands, an Secondary tax applies	10%

Tax rate for foreign companies: Residents and locally controlled companies are taxed on worldwide income, where as foreign companies (meeting certain criteria are considered non-resident for tax purposes ) are taxed on South African-source income and capital gains on immovable property in South Africa.
Capital gains taxation: Charged at the normal income tax rate on 50% of the gain i.e. at 14.5%.
Main allowable deductions and tax credit: Motor vehicle expenses, legal expenses, medical and dental expenses, bad and doubtful debts, and contributions to pension and provident funds and retirement annuities. Lease premiums may be written off for the period of the lease. Municipal rates may also be deducted from taxable income.
Other corporate taxes: Capital duty, Payroll tax, Real property tax, Social security, Stamp duty, Transfer tax, Gift tax.

Individual taxes

Tax rate

ZAR 0 to 132,000	18%
ZAR 132,001 to 210,000	25%
ZAR 210,001 to 290,000	30%
ZAR 290,001 to 410,000	35%
ZAR 410,001 to 525,000	38%
ZAR 525,001 and above	40%

Allowable deductions and tax credit: Medical aid, Contributions to government approved pension and retirement funds, Charitable donations, etc.
Special expatriate tax regime: No special expatriate tax regime exits in South Africa. Expatriates are taxed at the same rates as locals, but only on their South African-sourced income.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: South African Revenue Service
Withholding taxes: Withholding tax rates for non residents are 0% for dividends, 0% for interest, 12% for royalties and 15% on payments to artists and sportsmen.
Bilateral agreement: South Africa and Tunisia are bound by a double taxation treaty: yes

Signed	Ratified	Enforced
02/02/1999	-	-

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: South African Revenue Service
Other domestic resources: South African Info
South African government online
Statistics South Africa (Stats SA)
South African Revenue Services guides and other publications

Accounting Rules

Tax year: The tax year begins on 1 March and ends on the final day of February the following year
Accounting standards: Accounting principles are very strict in South Africa and in accordance with International Accounting Standards Board.
Accounting regulation bodies: ASB
SAICA
Accounting reports: In accordence with international accounting rules, the accounting structure is as follow: the balance sheet, the profit and loss account and the notes to the accounts. For more information, you can consult the Guide (See pages 24-28) published by the Accounting Standards Board.
Publication requirements: All the companies must hold their accounts in English, these recordings must include: capital and obligations of the company, the fixed assets register, the incomes, the annual stock report, a summary of the goods sold and bought.
Moreover, they have to produce their annual financial statement. It must contain the balance sheet and the annexes, a report on the incomes with annexes, a report made authentified by the director, a report authentified by the executives and a profit and loss account.
Professional accountancy bodies: SAICA
SAIPA
Certification and auditing: The companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization.
You can consult an external auditor: Independent Regulatory Board for Auditors (IRBA) ; ERNST & YOUNG in South Africa ; KMPG in South Africa ; PRICEWATERHOUSECOOPERS in South Africa
Accounting news: Accountancy SA
South Africa Accounting News
LowTax.NET