Who Qualifies to Pay Tax in South Africa
What exactly is a tax?
A tax is a mandatory payment or charge levied on individuals or businesses by local, state, and national governments to cover the costs of general government services, goods, and activities.
What are the various types of taxes?
Taxes are classified into two broad categories, each of which is further subdivided. The two major categories are direct tax and indirect tax.
What are examples of indirect taxes?
Examples of indirect taxes include sales tax, excise tax, value-added tax, and tariffs.
What are examples of direct taxes?
Examples of Direct taxes include income taxes, property taxes, and taxes on assets.
Why do government impose tax?
Income and property taxes, for example, are primarily imposed to generate revenue for purposes such as funding public welfare programmes, maintaining public infrastructure such as roads and utilities, and so on.
Who qualifies to pay tax in South Africa?
South African residents that earn income qualifies to pay tax in South Africa.
What is the threshold for income tax in South Africa?
If you are under the age of 65 years, the income tax threshold in South Africa is R91 250. If you are 65 to below 75 years old, the tax threshold (i.e. the amount above which income tax becomes payable) is R141 250. This threshold is R157 900 for taxpayers aged 75 years and older.
How much tax do self-employed pay in South Africa?
In South Africa, self-employed people pay the same income tax rates as employees.
How are non-residents taxed in South Africa?
Non-residents are taxed on their South African-sourced income as well as capital gains from the sale of immovable property or any interest or right to immovable property located in South Africa.
Who is exempt from income tax in South Africa?
In general, if you are under the age of 65 years and earn less than R83,100 per year, or less than R128,650 if you are over the age of 65 years , or less than R143,850 if you are over 75 years, you do not have to pay income tax.
Do temporary workers pay tax in South Africa?
Temporary workers do pay tax. In most employer/employee relationships, tax are deducted from the employee by the employer and paid over to South Africa Revenue Authority (SARS).
