South African Income Tax Rates from 2008 to 2014

Individuals – Rates

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
0 – 112 500 18% 0 – 122 000 18% 0 – 132 000 18% 0 – 140 000 18% 0 – 150 000 18% 0 – 160 000 18% 0 – 165 600 18%
112 501 – 180 000 R20 250 + 25% of amount above R112 500 122 001 – 195 000 R21 960 + 25% of the amount above R122 000 132 001 – 210 000 R23 760 + 25% of the amount above R132 000 140 001 – 221 000 R25 200 + 25% of the amount above R140 000 150 001 – 235 000 R27 000 + 25% of the amount above R150 000 160 001 – 250 000 R28 800 + 25% of amount above R160 000 165 601 – 258 750 R29 808 + 25% of amount above R165 600
180 001 – 250 000 R37 125 + 30% of amount above R180 000 195 001 – 270 000 R40 210 + 30% of the amount above R195 000 210 001 – 290 000 R43 260 + 30% of the amount above R210 000 221 001 – 305 000 R45 450 + 30% of the amount above R221 000 235 001 – 325 000 R48 250 + 30% of the amount above R235 000 250 001 – 346 000 R51 300 + 30% of amount above R250 000 258 751 – 358 110 R53 096 + 30% of amount above R258 750
250 001 – 350 000 R58 125 + 35% of amount above R250 000 270 001 – 380 000 R62 710 + 35% of the amount above R270 000 290 001 – 410 000 R67 260 + 35% of the amount above R290 000 305 001 – 431 000 R70 650 + 35% of the amount above R305 000 325 001 – 455 000 R75 250 + 35% of the amount above R325 000 346 001 – 484 000 R80 100 + 35% of amount above R346 000 358 111 – 500 940 R82 904 + 35% of amount above R358 110
350 001 – 450 000 R93 125 + 38% of amount above R350 000 380 001 – 490 000 R101 210 + 38% of the amount above R380 000 410 001 – 525 000 R109 260 + 38 % of the amount above R410 000 431 001 – 552 000 R114 750 + 38 % of the amount above R431 000 455 001 – 580 000 R120 750 + 38 % of the amount above R455 000 484 001 – 617 000 R128 400 + 38% of amount above R484 000 500 941 – 638 600 R132 894 + 38% of amount above R500 940
450 001 and above R131 125 + 40% of amount above R450 000 490 001 and above R143 010 + 40% of the amount above R490 000 525 001 and above R152 960 + 40% of the amount above R525 000 552 001 and above R160 730 + 40% of the amount above R552 000 580 001 and above R168 250 + 40% of the amount above R580 000 617 001 and above R178 940 + 40% of amount above R617 000 638 601 and above R185 205 + 40% of amount above R638 600

A summary of older individual rates is available in the archive.

Individuals – Rebates

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
Primary rebate R7 740 R8 280 R9 756 R10 260 R10 755 R11 440 R12 080
Additional age 65 and over rebate R4 680 R5 040 R5 400 R5 675 R6 012 R6 390 R6 750
Additional age 75 and over rebate N/A N/A N/A N/A R2 000 R2 130 2 250
Tax threshold below age 65 R43 000 R46 000 R54 200 R57 000 R59 750 R63 556 R67 111
Tax threshold age 65 – 74 R69 000 R74 000 R84 200 R88 528 R93 150 R99 056 R104 611
Tax threshold age 75 and over R69 000 R74 000 R84 200 R88 528 R104 261 R110 889 R117 111

The third rebate was phased out in 1993/4 (see archive for details) and reintroduced at a different age in 2011/12.

Individuals – Interest and Dividends Exemption

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
Individuals below age 65 R18 000 R19 000 R21 000 R22 300 R22 800 R22 800 R23 800
Individuals 65 and over R26 000 R27 500 R30 000 R32 000 R33 000 R33 000 R34 500
Portion that may be offset against foreign dividends R3 000 R3 200 R3 500 R3 700 R3 700 N/A N/A

Dividends received from domestic companies are generally exempt from income tax. A notable exception is a dividend from a “fixed property company”, since such a company may deduct a dividend declared as an expense for tax purposes. Dividends received from foreign companies are generally taxable. A notable exception is a dividend from a JSE Securities Exchange listed company. A participation exemption for dividends from a holding of more than 25% in the equity share capital of a foreign company came into effect for years of assessment commencing on or after 1 June 2004. This would be the 2005/6 year for individuals. For dividends received or accrued on or after 8 November 2005, the participation exemption has been extended to a holding of at least 20 per cent of the total equity share capital with voting rights of at least 20%.

From 1 April 2012 dividends received from domestic companies are subject to a final withholding tax of 15% but will be exempt from normal tax. Only 37.5% of dividends from foreign companies will be included in taxable income, so the maximum effective rate on these dividends will be 15%.

Corporate

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
Standard 29% 28% 28% 28% 28% 28% 28%
Small Business
0 – <65 Threshold
< 65 Threshold – 300 000
300 001 and above		 0%
10%
29%		 0%
10%
28%		 0%
10%
28%		 0%
10%
28%		 0%
10%
28%		 N/A N/A
Small Business
0 – <65 Threshold
< 65 Threshold – 350 000
350 001 and above		 N/A N/A N/A N/A N/A 0%
7%
28%		 N/A
Small Business
0 – <65 Threshold
< 65 Threshold – 365 000
365 001 -550 000
550 001 and above		 N/A N/A N/A N/A N/A N/A 0%
7%
21%
28%
Personal Service 34% 33% 33% 33% 33% 28% 28%
Secondary Tax on Companies 12.5% 10.0% 10.0% 10.0% 10.0% N/A N/A
Combined Standard
1:1 Dividend Cover
3:1 Dividend Cover		 36.89%
31.63%		 34.55%
30.18%		 34.55%
30.18%		 34.55%
30.18%		 34.55%
30.18%		 28%
28%		 28%
28%

Turnover and shareholding conditions apply in respect of the small business corporation system.

Secondary Tax on Companies (STC) was levied on the distribution of profits by companies. (Close corporations are considered to be companies for tax purposes.) The combined rate of tax on a company is thus dependent on the amount of dividends the company declares. The table above shows the difference between a company declaring all its profits as a dividend and a company that retains two thirds of its profits to fund expansion. As noted above the dividends were then exempt in the hands of shareholders. The table does not deal with gold mines or long-term insurance companies, which are subject to special rates.

The STC base was broadened on 1 October 2007 and the rate reduced to 10%. Following the signature and ratification of certain double taxation agreements, it was converted into a final withholding tax on dividends of 15% on 1 April 2012.

A summary of older corporate rates is available in the archive.

Micro Business Turnover Tax

2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
0 – 100 000 0% 0 – 100 000 0% 0 – 150 000 0% 0 – 150 000 0% 0 – 150 000 0%
100 001 – 300 000 1% of the amount above R100 000 100 001 – 300 000 1% of the amount above R100 000 150 001 – 300 000 1% of the amount above R150 000 150 001 – 300 000 1% of the amount above R150 000 150 001 – 300 000 1% of the amount above R150 000
300 001 – 500 000 R2 000 + 3% of the amount above R300 000 300 001 – 500 000 R2 000 + 3% of the amount above R300 000 300 001 – 500 000 R1 500 + 3% of the amount above R300 000 300 001 – 500 000 R1 500 + 3% of the amount above R300 000 300 001 – 500 000 R1 500 + 3% of the amount above R300 000
500 001 – 750 000 R8 000 + 5% of the amount above R500 000 500 001 – 750 000 R8 000 + 5% of the amount above R500 000 500 001 – 750 000 R5 500 + 4% of the amount above R500 000 500 001 – 750 000 R5 500 + 4% of the amount above R500 000 500 001 – 750 000 R5 500 + 4% of the amount above R500 000
750 001 and above R20 500 + 7% of the amount above R750 000 750 001 and above R20 500 + 7% of the amount above R750 000 750 001 and above R15 500 + 6% of the amount above R750 000 750 001 and above R15 500 + 6% of the amount above R750 000 750 001 and above R15 500 + 6% of the amount above R750 000

Turnover and shareholding conditions apply in respect of the microbusiness turnover tax system.