Introduction to SARS Tax

The South African Revenue Service (SARS) is the tax collecting authority in South Africa responsible for collecting revenue to fund the government. Taxes are collected from individuals, businesses, and other entities to finance government activities and provide essential services to citizens.

Types of Taxes in South Africa

1. Personal Income Tax

Personal income tax is levied on income earned by individuals in South Africa. It is calculated based on a progressive tax system where higher earners pay a higher percentage of tax.

2. Value Added Tax (VAT)

VAT is a consumption tax levied on the value added to goods and services at each stage of production or distribution. In South Africa, VAT is currently set at 15%.

3. Corporate Income Tax

Corporate income tax is levied on the profits earned by companies operating in South Africa. The current corporate tax rate is 28% for companies with an annual turnover of more than R1 million.

FAQ – Common Questions about SARS Tax

• What documents do I need to file my tax return?

  Individuals need documents such as their IRP5, medical aid certificates, and proof of income to file their tax returns.

• When is the deadline for submitting tax returns?

  The deadline for tax submissions in South Africa is usually at the end of October for individuals and at the end of February for companies.

• What happens if I don’t pay my taxes?

  Failure to pay taxes can result in penalties, interest charges, and legal action by SARS to recover the outstanding amount.

• Can I claim tax deductions?

  Yes, individuals and businesses can claim deductions for expenses such as medical expenses, retirement annuity contributions, and business expenses.

• How can I register for tax with SARS?

  You can register for tax with SARS online through the eFiling system or by visiting a SARS branch office with the required documentation.

• Do I need to pay tax on rental income?

  Yes, rental income is subject to tax in South Africa and should be declared as part of your annual tax return.

• What is the tax rate for capital gains?

  The tax rate for capital gains in South Africa is determined based on your tax bracket, with a maximum rate of 18% for individuals.

• Can I appeal a SARS tax assessment?

  Yes, you can appeal a SARS tax assessment by submitting an objection within 30 days of receiving the assessment.

• How can I pay my taxes to SARS?

  Taxes can be paid to SARS through various methods including EFT, credit card, or at a SARS branch office.

• Do I need to submit a tax return if I earn below a certain amount?

  Yes, even if you earn below the tax threshold, you may still need to submit a tax return if you have additional income or deductions to claim.