Prior to 2001 the South African tax system was "source-based", wherein income is taxed in the country where it originates. Taxation, imposition of compulsory levies on individuals or entities by governments. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. 1 July 1962. The tax season, when people submit their tax … Amends. Income Tax Act 28 of 1997 South African Revenue Service Act 34 of 1997 . 2 Taxation Laws Amendment Act 30 of 1998 Taxation Laws Amendment Act 32 of 1999 Revenue Laws Amendment Act 53 of 1999 Taxation Laws Amendment Act 30 of 2000 Revenue Laws Amendment Act 59 of 2000 Residents who pay taxes in South Africa have to fill in an annual tax return form and submit it to SARS. Taxable income (R) Rates of tax (R) 1 – 205 900: 18% of taxable income: 205 901 – 321 600: 37 062 + 26% of taxable income above 205 900: 321 601 – 445 100 The Income Tax Act 58 of 1962 aims: to consolidate the law relating to the taxation of incomes and donations. Learn more about taxation in this article.
The South African tax year runs from 1 March to 28/29 February. It specifically focuses on the failures of tax policy in South Africa to function as a redistributive tool in light of a commitment to a progressive tax regime which levies higher taxes as one ears more income. How to file your income tax return in South Africa. Important tax legislation: - The Income Tax Act 58 of 1962 - The VAT Act 89 of 1991 - The Customs Act 91 of 1964 Interpretation of Statutes: Income Tax Act 34 of 1953; Income Tax Act 43 of 1955; Income Tax Act 61 of 1957; Income Tax Act 36 of 1958; Income Tax Act 78 of 1959; Income Tax Act 80 of 1961; Commencement. Taxation may involve payments to a minimum of two different levels of government: central government through SARS or to local government. Amendments. South African Tax Legislation South African Revenue Service (SARS) is responsible for collecting tax. foreign taxes withheld on such remuneration as a credit against the employees’ tax (“PAYE”) payable in South Africa (but further workshops will be held to address any administrative concerns).
Taxation in South Africa 2020 ii For income tax purposes, t his guide has been updated to include the Tax Administration Laws Amendment Act 33 of 2019, the Taxation Laws Amendment Act 34 of 2019 and the Rates and Monetary Amounts and Amendment of Revenue Laws Act 32 of 2019.
The purpose of this brief is to provide an overview of personal income tax in South Africa. To download this brief as a pdf click here .
South Africa’s tax system is determined by the laws that the Commissioner of SARS must administer.