RATES OF TAX FOR INDIVIDUALS
Having an accountant that fully understands where to save you tax can be life changing. Below we’ve set out some tax tables and deductibles.
For a more in depth assessment of where we can save you on tax, contact us to set up an appointment.
Year of assessment ending 28 February 2023
| 1 – 226 000 | 18% of taxable income |
| 226 001 – 353 100 | 40 680 + 26% of taxable income above 226 000 |
| 353 101 – 488 700 | 73 726 + 31% of taxable income above 353 100 |
| 488 701 -641 400 | 115 762 + 36% of taxable income above 488 700 |
| 641 401 -817 600 | 170 734 + 39% of taxable income above 641 400 |
| 817 601 – 1 731 600 | 239 452 + 41% of taxable income above 817 600 |
| 1 731 601 and above | 614 192 + 45% of taxable income above 1 731 600 |
Individual – Rebates
| Primary | R16 425 |
| Secondary (persons 65 and over) | R9 000 |
| Tertiary (persons 75 and over) | R2 997 |
Rebates are reduced proportionally where the period of assessment is less than 12 months
Tax Threshold
| Below age 65 | R91 250 |
| Age 65 and 74 | R141 250 |
| Age 75 and over | R157 900 |
Deductions and Exemptions
Interest Income
Below age 65 – R 23 800
Age 65 and over – R 34 500
Interest received by or accrued to a non-resident may be exempt from tax.
Dividend Income
South African dividends received by a taxpayer are exempt from normal tax. Certain foreign dividends are exempt from normal tax. Taxable foreign dividends are subject to an exemption in the ratio of 25/45. No deductions are allowed for expenditure to produce foreign dividends. Dividends received by a South African resident individual from a REIT are subject to income tax. Non-residents receiving dividends from a REIT are only subject to dividends tax.
Employment outside of South Africa.
With effect from 1 March 2020, R1.25 million p.a. of remuneration for employment outside South Africa will be exempt if the employee is outside of South Africa for >183 days during a 12 month period and for a continuous period >60 days during the 12 month period
Tax Free Investments
Any amount received by or accrued to a natural person in respect of a tax free investment shall be exempt from normal tax. Contributions are limited to an annual limit of R36 000 and a lifetime limit of R500 000.
Medical Scheme Fees Tax Credit
A natural person must deduct a credit from normal tax payable for contributions paid to a medical scheme of R347 each for the taxpayer and first dependant and R234 for each additional dependant per month.
Additional Medical Tax Expenses Tax Credit
A natural person must deduct a credit from normal tax payable for additional medical expenses as follows:
Taxpayers over 65 or for persons with a disability:
33,3% of [(fees paid to a medical scheme as exceeds three times the medical scheme fees tax credit) plus qualifying medical expenses].
Other taxpayers:
25% of {(fees paid to a medical scheme as exceeds four times the medical scheme fees tax credit) plus qualifying medical expenses} as exceeds 7,5% of the person’s taxable income].
Pension, Provident and Retirement Annuity Fund contributions
Total deduction limited to the lesser of:
R350 000; or 27,5% of the higher of
- remuneration excluding lump sum benefits, or
- taxable income excluding lump sum benefits before this deduction.
Any excess contributions are carried forward to the next year.
Donations
Donations to qualifying institutions are limited to 10% of taxable income before this deduction. Any excess shall be carried forward and be deemed to be a donation paid in the next year.
