Quick Answer: Who must register for tax in South Africa?

If you receive taxable income and meet any of the conditions below, you need to register for income tax: You’re 64 years old or younger and your income (basic salary + bonus + any other incentive + any pension benefit payment) in respect of the 2020 tax year exceeds R79 000.

Who needs a tax number in South Africa?

You must register as a taxpayer with the South African Revenue Service (SARS) if you earn more than a specific amount, which is determined every year. You must register within 60 days of first receiving an income.

How much do you have to earn to submit a tax return in South Africa?

24 February 2021 – Tax Rates changes

R87 300 if you are younger than 65 years. If you are 65 years of age to below 75 years, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R135 150. For taxpayers aged 75 years and older, this threshold is R151 100.

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How much must a company earn to pay tax in South Africa?

Under the traditional company income tax system for small business corporations, the threshold for paying income tax starts at R79,001, although rates vary depending on a number of factors, including: Your annual turnover. Whether you’re based in South Africa, or have a branch in the country.

What is the tax threshold for 2020 in South Africa?

Tax Thresholds – see changes from previous year

​ Age
2022​ 2020​
Under 65 ​R87 300 ​R79 000
​65 an older ​R135 150 R​122 300
​75 and older ​R151 100 ​R136 750

What does SARS tax number look like?

A South African Income Tax reference number is 10 numeric digits long. The tax reference number can only start with 0, 1, 2, 3 or 9 e.g. 0123456789.

Can I apply for SARS tax number online?

You can get it on eFiling if you are registered as an eFiler. … eFiling has been updated to allow taxpayers to request the Notice of Registration (IT150) under the ‘SARS Registered Details’ menu option. At a SARS branch. Remember to make an appointment before you visit a branch.

How much cash can you deposit without being reported in South Africa?

The threshold for cash transactions reporting is currently set at R 24 999,99 with an amount of R 25 000 and above reportable to the FIC. Cash transactions reporting should be done as soon as possible, but within two days of becoming aware of the cash transaction that bridged the threshold.

At what salary do I pay tax?

Any Indian citizen aged below 60 years is liable to pay income tax, if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he/she will have to pay taxes to the Government of India.

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How many hours can you work before paying tax?

Thirty hours a week is the minimum that the Office for National Statistics considers to be a full-time job in its Annual Survey of Hours and Earnings. It is also the minimum number of hours a week that someone aged between 25 and 59 would have to work to be eligible for Working Tax Credits.

How can I reduce my tax in South Africa?

10 Tips to Pay Less Tax

  1. Contribute towards a retirement fund. …
  2. Open up a Tax Free Savings Account. …
  3. Donate to a SARS registered charity. …
  4. Join a Medical Aid Scheme. …
  5. Keep a logbook if you receive a travel allowance. …
  6. Keep a logbook if you drive a company car. …
  7. Claim commission related expense if you are a commission earner.

22.04.2020

How does company tax work in South Africa?

The corporate tax rate in South Africa is a flat rate of 28% for all companies (27% from 1 April 2022). … Additionally, companies are subject to capital gains tax at a rate of 22.4%. Trusts pay a capital gains tax of 36%, while special trusts and individuals are liable for a rate of 18%.

How do taxes work in South Africa?

South Africa uses a residence-based taxation system whereby residents are taxed on worldwide income and non-residents are taxed on South African-sourced income. With 22.2 million of its 58 million-strong population paying taxes, most of the state’s income comes from personal and corporate tax.

Who is exempt from paying tax in South Africa?

Interest from a South African source, earned by any natural person under 65 years of age, up to R23 800 per annum, and persons 65 and older, up to R34 500 per annum, is exempt from income tax.

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What is my tax rate South Africa?

Tax tables (tax brackets) for individuals for the tax years 2021 and 2022

Taxable income Rates of tax
R337 801 – R467 500 R70 532 + 31% of taxable income above R337 800
R467 501 – R613 600 R110 739 + 36% of taxable income above R467 500
R613 601 – R782 200 R163 335 + 39% of taxable income above R613 600

How much tax do I pay on my pension in South Africa?

The first R25,000 is not taxed; The balance up to R660,000 is taxed at 18% of the amount over R25,000; The balance up to R990,000 is taxed at R114,300 + 27% of the amount over R660,000; The remainder is taxed at R203,400 + 36% of the amount over R990,000.

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