South African Tax Law
The tax system in South Africa has seen a great deal of overhaul in the last several years, particularly in the corporate income tax structure.
Other People Are Reading
-
Personal Income Tax
-
Individual tax payers are levied taxes on a progressive sliding scale with the top rate of 40 percent being assessed on those earning more than 525,000 rand per year as of the 2009 to 2010 tax year. Annual incomes below 132,000 rand are assessed 18 percent; incomes between 132,000 and 210,000 rand are charged 25 percent; 210,000 to 290,000, 30 percent; 290,000 to 410,000, 35 percent; and 410,000 to 525,000, 38 percent.
Corporate Income
-
Corporate income is taxed at a rate of 28 percent. An additional Secondary Tax on Companies (STC) is levied on net dividends. Credit is given to companies for dividends received from South African companies that have already been subject to the STC.
-
Capital Gains
-
The first 17,500 of any capital gains earned in a tax year are exempt from any taxes. Other tax exemptions include an individual's primary residence, personal use assets and retirement benefits. Capital gains taxes for individuals are assessed at the same tax rates as personal income but only on 25 percent of the total capital gains. Corporate capital gains taxes are assessed at a rate of 14.5 percent.
Value Added Tax
-
The Value Added Tax, the government's second most significant source of income, is levied at a standard rate of 14 percent on the supply of all goods and services rendered by registered vendors, though it is subject to certain exemptions, exceptions and deductions.
-
References
- Photo Credit South Africa image by bluefern from Fotolia.com
