What you need to know about tax rates
Do I need to register for provisional tax?
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You may need to register for provisional tax if you earn: income from an employer that is not registered for tax; business income; professional, consulting fees; rental income or investment income. You do not have to register if: |
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How much tax do I pay on dividends I earn from my investments?
| If a South African company pays you dividends, dividends tax, at a rate of 20%, must be withheld and paid to SARS on your behalf. |
| Investments held in a tax-free savings account or retirement fund are exempt from dividends tax. |
How much tax will I pay on a lump sum taken from my retirement savings at retirement?
| 2023 tax year (Mar 1 2022 - Feb 28 2023) | 2024 tax year (Mar 1 2023 - Feb 28 2024) | ||
| Lump sum (R) | Rate of Tax (R) | Lump sum (R) | Rate of Tax (R) |
| R1 - R500 000 | 0% | R1 - R550 000 | 0% |
| R500 001 - R700 000 | 18% of lump sum above R500 000 |
R550 001 - R700 000 |
18% of lump sum above R550 000 |
| R700 001 - R1 050 000 | R56 700 + 27% of lump sum above 700 000 | R770 001 - R1 155 000 |
R39 600 + 27% of lump sum above R770 000 |
| R1 050 001 and above | R141 750 + 36% of lump sum above R1 050 001 |
R1 155 001 and above | R143 550 + 36% of lump sum above R1 155 000 |
How much tax will I pay if I withdraw money from my retirement savings before retirement?
| 2023 tax year (Mar 1 2022 - Feb 28 2023) | 2024 tax year (Mar 1 2023 - Feb 28 2024) | ||
| Sum withdrawn (R) | Rate of Tax (R) | Sum withdrawn (R) | Rate of Tax (R) |
| R1 - R25 000 | 0% | R1 - R27 500 | 0% |
| R25 001 - R660 000 | 18% of lump sum above R25 000 |
R27 500 - R726 000 |
18% of lump sum above R27 500 |
| R660 001 - R990 000 |
R114 300 + 27% of lump sum above R660 000 |
R726 001 - R1 089 000 |
R125 730 + 27% of lump sum above R726 000 |
| R990 001 and above | R203 400 + 36% of lump sum above R990 000 |
R1 089 001 and above | R223 740 + 36% of lump sum above R1 089 000 |
What tax rates do small business corporations pay?
For businesses with:
An annual gross income of R20 million or less;
Natural persons as shareholders;
Shareholders who are not shareholders in other unlisted companies; and
Not earning more than 20% of its income from investments or by rendering a personal service (with some exceptions).
| Small business corporation tax rates for 2023 | |
| (For the years of assessment April 1 2022 – March 31 2023) | |
| Taxable income | Rate of tax |
| R1 – R91 250 | 0% |
| R91 250 – R365 000 | 7% of taxable income above R91 250 |
| R365 001 - R550 000 | R19 163 plus 21% of the amount by which taxable income exceeds R365 000 |
| R550 001 and above | R58 103 plus 28% of the amount by which taxable income exceeds R550 000 |
| Small business corporation tax rates for 2024 | |
| (For the years of assessment April 1 2023 – March 31 2024) | |
| Taxable income | Rate of tax |
| R1 – R95 750 | 0% |
| R95 751 – R365 000 | 7% of taxable income above R95 750 |
| R365 001 - R550 000 | R18 848 plus 21% of the amount by which taxable income exceeds R365 000 |
| R550 001 and above | R57 698 plus 27% of the amount by which taxable income exceeds R550 000 |
What tax rates do companies pay?
| Company tax rates | |
| Years of assessment ending on any date between 1 April 2022 and 30 March 2023 | |
| Companies Rate of Tax | 28% of taxable income |
| Company tax rates | |
| Years of assessment ending on any date between 31 March 2023 and 31 March 2024 | |
| Companies Rate of Tax | 27% of taxable income |
What are the turnover tax rates for small businesses?
For businesses with a turnover of less than R1 million a year.
| Turnover tax rates for the 2023 tax year (March 1 2022 – February 28 2023) | |
| Taxable turnover | Rate of tax |
| R1 – R335 000 | 0% of taxable turnover |
| R335 001 – R500 000 | 1% of taxable turnover above R335 000 |
| R500 001 – R750 000 | R1 650 + 2% of taxable turnover above 500 000 |
| R750 001 and above | R6 650 + 3% of taxable turnover above R750 000 |
| Turnover tax rates for the 2024 tax year (March 1 2023 – February 29 2024) | |
| Taxable turnover | Rate of tax |
| R1 – R335 000 | 0% of taxable turnover |
| R335 001 – R500 000 | 1% of taxable turnover above R335 000 |
| R500 001 – R750 000 | R1 650 + 2% of taxable turnover above 500 000 |
| R750 001 and above | R6 650 + 3% of taxable turnover above R750 000 |
What is the donations tax rate?
| Donations tax exemption |
| R100 000 can be donated each year without donations tax. |
| Donations between spouses and to certain public benefit organisations are free of donations tax. |
| Donations tax rate |
| Donations tax at a rate of 20% is payable on the cumulative value of donations above the annual exemption and not exceeding R30 million since 2018. |
| Donations tax at a rate of 25% is payable on the cumulative value of donations above the annual exemption and exceeding R30 million since 2018. |
| Tax deductions for donations made |
| Donations to public benefit organisations up to 10% of taxable income can be deducted each year and 10% can be carried over to the next tax year. |
What is the estate duty rate?
| Duty rate |
| Where the dutiable value of an estate is less than R30 million: 20% |
| Where the dutiable value of an estate is more than R30 million: 25% |
| Duty exemption or abatement |
| R3.5 million; or |
| Up to R7 million for a surviving spouse using the unused portion of the exemption of the first-dying spouse |
How much transfer duty will I pay if I buy property?
Transfer duty depends on the value of the property. Find the appropriate value of the property and apply the rate. These rates apply from March 1 2023.
| Value of property (R) | Rate |
|
1 - 1 100 000 |
0% |
| 1 100 001 – 1 512 500 | 3% of the value above R1 100 000 |
| 1 512 501 – 1 2 117 500 | R12 375+ 6% of the value above R 1 512 500 |
| 2 117 501 - 2 722 500 | R48 675 + 8% of the value above R2 117 500 |
| 2 722 501 - 12 100 000 | R97 075 +11% of the value above R2 722 500 |
| 12 100 001 and above | R1 128 600 + 13% of the value exceeding R12 100 000 |
How much capital gains tax will I pay if I make a taxable capital gain?
| Exclusions |
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| Inclusion rate |
| 40% of the taxable capital gain on assets must be included in your taxable income |
| Tax rate |
| The taxable capital gains included in your taxable income is taxed at your marginal tax rate As a result of the inclusion rate, the maximum effective rate for individuals on the highest marginal tax rate (45%) is: 18% For trusts, capital gains tax is applied at flat rate of 36% and the exemptions do not apply |
