Republic of South Africa 

Country Overview

Capital City:

Pretoria

Chief of State:

Jacob ZUMA
President since 2009

Head of Government:

Jacob ZUMA
President since 2009

Area (sq km):

1,219,912 (land & water)

Population:

49,99 million (mid 2010)

Revenue Overview

Revenue Authority:

South African Revenue Service

Administration Head:

Mr Oupa MAGASHULA

Commissioner

Institution Address:

*

Private Bag X923 

Pretoria  0001

South Africa

'

Phone:

+27 12 422 5162

;

e-Mail:

omagashula@sars.gov.za

Country Correspondent:

Mrs Varsha SINGH

Mobile:

+27 82 451 8253

Contact Details:

'

Phone:

+27 12 422 4958

7  

Fax:

+27 12 422 5038

;

e-Mail:

vsingh@sars.gov.za

Tax Rate Overview

Personal Income Tax:

Tax Year:

1 March to 28 February

Tax Rate:

Progressive to 40%

• South African residents are taxed on worldwide income. Nonresidents are taxed on their South African-source income and capital gains from the disposal of immovable property and assets of a permanent establishment in South Africa. Interest from a South African source paid to a nonresident will not be taxable in South Africa if the person is outside South Africa for more than 183 days in the tax year and does not conduct a business in South Africa.
• Tax returns must be filed by a date published by the Commissioner. Tax on employment income is withheld by the employer under the PAYE system and remitted to the tax authorities. Income not subject to PAYE is self-assessed individuals must make tax payments at 6-month intervals during the tax year and a final payment 6 months after the tax year.

Corporate Tax:

Tax Year:

The same as the corporation's accounting year.

Tax Rate:

28% for companies and 33% for branches.

• Income tax is imposed on a company's profits, which consist of business/trading income, passive income and capital gains. Expenses incurred in the production of income may be deducted in computing taxable income.
• Companies are required to file their income tax returns annually, within 12 months of the company's financial year end. Advance payments of tax must be made twice a year, based on estimates of the final tax amount, the first during the first 6 months of the company's financial year and the second before the end of the year. Where the provisional tax payments are less than the final tax liability, a third provisional tax return may be submitted, accompanied by an additional payment of provisional tax, within 6 months after the end of the tax year.

Nature of the Tax:

Goods and Services Tax (GST)

Tax Rate:

14%

Filing & Payment:

VAT returns are generally submitted every 2 months, but businesses with an annual turnover in excess of ZAR 30 million must submit monthly returns. Returns must be submitted within 25 days after the end of the tax period. Payment in full must accompany the return.

Economic Overview

GDP per capita (PPP) %:

R 2,407.7 billion (2009/10)

Tax to GDP Ratio %:

24.4% (2009/10)

Inflation Rate %:

3.6% (Nov 2010)

Currency:

South African Rand