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COUNTRY TRADING PROFILES
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Taxes - Accounting
Tax Rates |
Accounting Rules
Tax Rates
Consumption taxes
- Nature of the tax
-
VAT = Valued Added Tax (BTW = Belasting op Toegevoegde Waarde in Afrikaans).
- Tax rate
- 14%
- Reduced tax rate
- Reduced VAT rates range from 0% (on education services, basic foods, diesel fuel and gasoline, export of Goods and Services) up to the standard rate of 14%. For example, VAT on hotels and retirement hostels is charged at 8.4%.
- Other consumption taxes
- Public Benefit Organization under Section 30 of South Africa's Income Tax Act is eligible for exclusion from taxation.
Corporate taxes
Tax rate
Corporate tax is payable by South African companies on their worldwide
taxable income |
28% |
| Although dividends are exempt from tax in the recipient’s hands, an Secondary tax applies |
10% |
- Tax rate for foreign companies
- Residents and locally controlled companies are taxed on worldwide income, where as foreign companies (meeting certain criteria are considered non-resident for tax purposes ) are taxed on South African-source income and capital gains on immovable property in South Africa.
- Capital gains taxation
- Charged at the normal income tax rate on 50% of the gain i.e. at 14.5%.
- Main allowable deductions and tax credit
- Motor vehicle expenses, legal expenses, medical and dental expenses, bad and doubtful debts, and contributions to pension and provident funds and retirement annuities. Lease premiums may be written off for the period of the lease. Municipal rates may also be deducted from taxable income.
- Other corporate taxes
- Capital duty, Payroll tax, Real property tax, Social security, Stamp duty, Transfer tax, Gift tax.
Individual taxes
Tax rate
| ZAR 0 to 132,000 |
18% |
| ZAR 132,001 to 210,000 |
25% |
| ZAR 210,001 to 290,000 |
30% |
| ZAR 290,001 to 410,000 |
35% |
| ZAR 410,001 to 525,000 |
38% |
| ZAR 525,001 and above |
40% |
- Allowable deductions and tax credit
- Medical aid, Contributions to government approved pension and retirement funds, Charitable donations, etc.
- Special expatriate tax regime
- No special expatriate tax regime exits in South Africa. Expatriates are taxed at the same rates as locals, but only on their South African-sourced income.
Double taxation treaties
- Countries with whom a double taxation treaty have been signed
- South African Revenue Service
- Withholding taxes
- Withholding tax rates for non residents are 0% for dividends, 0% for interest, 12% for royalties and 15% on payments to artists and sportsmen.
- Bilateral agreement
-
 We can indicate you which local taxes are applied to your product.
Accounting Rules
- Tax year
- The tax year begins on 1 March and ends on the final day of February the following year
- Accounting standards
- Accounting principles are very strict in South Africa and in accordance with International Accounting Standards Board.
- Accounting regulation bodies
-
ASB
SAICA
- Accounting reports
- In accordence with international accounting rules, the accounting structure is as follow: the balance sheet, the profit and loss account and the notes to the accounts. For more information, you can consult the Guide (See pages 24-28) published by the Accounting Standards Board.
- Publication requirements
- All the companies must hold their accounts in English, these recordings must include: capital and obligations of the company, the fixed assets register, the incomes, the annual stock report, a summary of the goods sold and bought.
Moreover, they have to produce their annual financial statement. It must contain the balance sheet and the annexes, a report on the incomes with annexes, a report made authentified by the director, a report authentified by the executives and a profit and loss account.
- Professional accountancy bodies
-
SAICA
SAIPA
- Certification and auditing
- The companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization.
You can consult an external auditor: Independent Regulatory Board for Auditors (IRBA) ; ERNST & YOUNG in South Africa ; KMPG in South Africa ; PRICEWATERHOUSECOOPERS in South Africa
- Accounting news
-
Accountancy SA
South Africa Accounting News
LowTax.NET
© Export Entreprises SA, all rights reserved.
Last updates: February 2012
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