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Tax Rates for the financial year ending 28 February 2017
| Taxable Income (R) | Rate of Tax (R) |
| 0 – 188 000 | 18% of taxable income |
| 188 001 – 293 600 | 33 840 + 26% of taxable income above 188 000 |
| 293 601 – 406 400 | 61 296 + 31% of taxable income above 293 600 |
| 406 401 – 550 100 | 96 264 + 36% of taxable income above 406 400 |
| 550 101 – 701 300 | 147 996 + 39% of taxable income above 550 100 |
| 701 301 and above | 206 964 + 41% of taxable income above 701 300 |
Tax Rebates
| Primary (Persons below age 65) | R13 500 |
| Secondary (Persons 65 and older) | R7 407 |
| Tertiary (Persons 75 and older) | R2 466 |
Tax Thresholds
| Age | Tax Threshold |
| Below age 65 | R75 000 |
| Age 65 to below 75 | R116 150 |
| Age 75 and over | R129 850 |
Interest Exemption
| Below age 65 | R23 800 per annum |
| Above age 65 | R34 500 per annum |
Dividends
Dividends received by individuals from a South African company is exempt from income tax. The company paying the dividend will pay dividends tax of 15%.
Dividends received by a South African resident from REIT’s are subject to income tax.
Foreign Dividends are taxed at a maximum effective rate of 15%.
Medical Deductions
Effective 1 March 2013 the medical scheme fees tax credit system will be as follows:
A medical scheme contribution tax credit will be available to taxpayers who belong to a medical scheme and are below the age of 65 (including persons with a disability), set at fixed amounts per month:
- R 286 per month for contributions made by the taxpayer and for the first dependant; plus
- R 192 per month in respect of each additional dependant.
In the case of:
- an individual who is 65 and older, or if that person, his or her spouse or child is a person with a disability, 33,3% of qualifying medical expenses paid and borne by the individual and an amount by which medical scheme contributions paid by the individual exceed 3 times the medical scheme fees tax credits for the tax year;
- any other individual: 25% of an amount equal to qualifying medical expenses paid and borne by the individual and an amount by which medical scheme contributions paid by the individual exceed 4 times the medical scheme fees tax credits for the tax year, limited to the amount which exceeds 7,5% of taxable income (excluding retirement fund lump sums and severance benefits).
Retirement Fund Contributions
Amounts contributed to pension, provident and retirement annuity funds during a tax year are deductible by members of those funds. Amounts contributed by employers and taxed as fringe benefits are treated as contributions by the individual employee. The deduction is limited to 27.5% of the greater of remuneration for PAYE purposes or taxable income (both excluding retirement fund lump sums and severance benefits). Furthermore, the deduction is limited to a maximum of R350 000. Any contributions exceeding the limitations are carried forward to the next tax year and are deemed to be contributed in that following year. The amounts carried forward are reduced by contributions set off when determining taxable retirement fund lump sums or retirement annuities.
Donations
The deduction is limited to 10% of an individual’s taxable income to a public benefit organisation. Such an organisation must be specifically approved by the South African Revenue Service and they must issue with their receipt confirming your contribution. The amount of donations exceeding 10% of the taxable income is treated as a donation to qualifying public benefit organisations in the following tax year.
Travel Allowance
Actual cost travel claim
| Value of the Vehicle
(Incl VAT) (R) |
Fixed Cost
(R p.a.) |
Fuel Cost
(c/km) |
Maintenance Cost
(c/km) |
| 0 – 80 000 | 26 675 | 82.4 | 30.8 |
| 80 001 – 160 000 | 47 644 | 92.0 | 38.6 |
| 160 001 – 240 000 | 68 684 | 100.0 | 42.5 |
| 240 001 – 320 000 | 87 223 | 107.5 | 46.4 |
| 320 001 – 400 000 | 105 822 | 115.0 | 54.5 |
| 400 001 – 480 000 | 125 303 | 132.0 | 64.0 |
| 480 001 – 560 000 | 144 784 | 136.5 | 79.5 |
| Exceeding 560 000 | 144 784 | 136.5 | 79.5 |
Where the distance travelled for business purposes does not exceed 8 000 kilometres per annum, no tax is payable on an allowance paid by an employer to an employee up to the rate of 329 cents per kilometre, regardless of the value of the vehicle. However, this alternative is not available if other compensation in the form of an allowance or reimbursement (other than for parking or toll fees) is received from the employer in respect of the vehicle.
Capital Gains Tax
| Maximum effective rate of tax: | |
| Individuals and special trusts | 16.4% |
| Companies | 22.4% |
| Other trusts | 32.8% |
Annual Exclusion of R40 000 capital gain or capital loss is granted to individuals and special trusts. This amount increases to R300 000 on the year of death.
R2 million gain exclusion on the disposal of a primary residence.
Tax Rates for the financial year ending 28 February 2017
| Taxable Income (R) | Rate of Tax (R) |
| 0 – 188 000 | 18% of taxable income |
| 188 001 – 293 600 | 33 840 + 26% of taxable income above 188 000 |
| 293 601 – 406 400 | 61 296 + 31% of taxable income above 293 600 |
| 406 401 – 550 100 | 96 264 + 36% of taxable income above 406 400 |
| 550 101 – 701 300 | 147 996 + 39% of taxable income above 550 100 |
| 701 301 and above | 206 964 + 41% of taxable income above 701 300 |
Tax Rebates
| Primary (Persons below age 65) | R13 500 |
| Secondary (Persons 65 and older) | R7 407 |
| Tertiary (Persons 75 and older) | R2 466 |
Tax Thresholds
| Age | Tax Threshold |
| Below age 65 | R75 000 |
| Age 65 to below 75 | R116 150 |
| Age 75 and over | R129 850 |
Interest Exemption
| Below age 65 | R23 800 per annum |
| Above age 65 | R34 500 per annum |
Dividends
Dividends received by individuals from a South African company is exempt from income tax. The company paying the dividend will pay dividends tax of 15%.
Dividends received by a South African resident from REIT’s are subject to income tax.
Foreign Dividends are taxed at a maximum effective rate of 15%.
Medical Deductions
Effective 1 March 2013 the medical scheme fees tax credit system will be as follows:
A medical scheme contribution tax credit will be available to taxpayers who belong to a medical scheme and are below the age of 65 (including persons with a disability), set at fixed amounts per month:
- R 286 per month for contributions made by the taxpayer and for the first dependant; plus
- R 192 per month in respect of each additional dependant.
In the case of:
- an individual who is 65 and older, or if that person, his or her spouse or child is a person with a disability, 33,3% of qualifying medical expenses paid and borne by the individual and an amount by which medical scheme contributions paid by the individual exceed 3 times the medical scheme fees tax credits for the tax year;
- any other individual: 25% of an amount equal to qualifying medical expenses paid and borne by the individual and an amount by which medical scheme contributions paid by the individual exceed 4 times the medical scheme fees tax credits for the tax year, limited to the amount which exceeds 7,5% of taxable income (excluding retirement fund lump sums and severance benefits).
Retirement Fund Contributions
Amounts contributed to pension, provident and retirement annuity funds during a tax year are deductible by members of those funds. Amounts contributed by employers and taxed as fringe benefits are treated as contributions by the individual employee. The deduction is limited to 27.5% of the greater of remuneration for PAYE purposes or taxable income (both excluding retirement fund lump sums and severance benefits). Furthermore, the deduction is limited to a maximum of R350 000. Any contributions exceeding the limitations are carried forward to the next tax year and are deemed to be contributed in that following year. The amounts carried forward are reduced by contributions set off when determining taxable retirement fund lump sums or retirement annuities.
Donations
The deduction is limited to 10% of an individual’s taxable income to a public benefit organisation. Such an organisation must be specifically approved by the South African Revenue Service and they must issue with their receipt confirming your contribution. The amount of donations exceeding 10% of the taxable income is treated as a donation to qualifying public benefit organisations in the following tax year.
Travel Allowance
Actual cost travel claim
| Value of the Vehicle
(Incl VAT) (R) |
Fixed Cost
(R p.a.) |
Fuel Cost
(c/km) |
Maintenance Cost
(c/km) |
| 0 – 80 000 | 26 675 | 82.4 | 30.8 |
| 80 001 – 160 000 | 47 644 | 92.0 | 38.6 |
| 160 001 – 240 000 | 68 684 | 100.0 | 42.5 |
| 240 001 – 320 000 | 87 223 | 107.5 | 46.4 |
| 320 001 – 400 000 | 105 822 | 115.0 | 54.5 |
| 400 001 – 480 000 | 125 303 | 132.0 | 64.0 |
| 480 001 – 560 000 | 144 784 | 136.5 | 79.5 |
| Exceeding 560 000 | 144 784 | 136.5 | 79.5 |
Where the distance travelled for business purposes does not exceed 8 000 kilometres per annum, no tax is payable on an allowance paid by an employer to an employee up to the rate of 329 cents per kilometre, regardless of the value of the vehicle. However, this alternative is not available if other compensation in the form of an allowance or reimbursement (other than for parking or toll fees) is received from the employer in respect of the vehicle.
Capital Gains Tax
Maximum effective rate of tax:
| Individuals and special trusts | 16.4% |
| Companies | 22.4% |
| Other trusts | 32.8% |
Annual Exclusion of R40 000 capital gain or capital loss is granted to individuals and special trusts. This amount increases to R300 000 on the year of death.
R2 million gain exclusion on the disposal of a primary residence.