South Africa - Tax Guide for Freelance Contractors
Welcome to our guide to South African Taxation. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, South Africa.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in South Africa. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in South Africa.
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South African Income Tax
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South African Social Security
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South African Visas and Work Permits
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Umbrella and Contract Management Services in South Africa
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Download our South African Taxation Factsheet
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Tax residents in South Africa: are liable to pay South African tax on their worldwide income,
Non tax residents in South Africa: are liable to pay tax on South African-source income.
Individuals will be regarded as tax residents:
- if present for more than 91 days, in aggregate, in the current tax year and each of the preceding five tax years,
- if “ordinarily resident”, i.e. if the person’s settled home or main residence is in South Africa.
Married persons are taxed separately and must submit separate tax returns.
Taxable income includes:
- all cash amounts received for services rendered,
- 25% of net capital gains,
- interest received.
Certain deductions are permissible for 2011/2012 including:
- expenses incurred in the production of income like business-related travel, car and entertainment expenses,
- contributions to pension funds registered in South Africa,
- donations to approved public benefit organizations involved in education and AIDS-related activities (there are maximum limits),
- contributions to medical schemes up to a certain limit.
Income tax rates for 2011/2012:
- 0.00% on income up to ZAR 59’750 if the taxpayer is under 65 years old,
- 0.00% on income up to ZAR 93’150 if the taxpayer is 65 years old or more,
- 18.00% on income from ZAR 59'750 or ZAR 93’150 to ZAR 150’000,
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ZAR 27’000 + 25% of the amount above ZAR 150’000 for income between
ZAR 15’001 – 235’000, -
ZAR 48’250 + 30% of the amount above ZAR 235’000 for income between
ZAR 235’001 – 325’000, -
ZAR 75’250 + 35% of the amount above ZAR 325’000 for income between
ZAR 325’001 – 455’000, -
ZAR 120’750 + 38% of the amount above ZAR 455’000 for income between
ZAR 455’001 – 580’000, -
ZAR 168’250 + 40% of the amount above ZAR 580’000 for income between
ZAR 580’001 and above.
Filing dates:
Tax returns can be filed manually or by e-mail and filing dates can vary each year depending on the way you decide to file your tax return. In general, if tax returns are filed manually, the deadline lies between 1 July and 18 September. If filed by e-mail, the deadline may be up to 30 November.