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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Contact our South African Tax Specialists
Residents and non-residents working in South Africa are required to pay social security contributions on their gross salary in South Africa or in the country of their employer if a social security agreement exists between the two countries and the employer obtains a detachment certificate.
In principle, South African employers withhold South African social security contributions on the remuneration of their employees working in South Africa. Contributions are paid to the Unemployment Insurance Fund (UIF) which covers benefits for unemployment, illness, maternity, adoption and for dependants of deceased persons.
The employer also has to make contributions to the Compensation Fund which provides benefits in case of disablement or death caused by occupational injuries or diseases.
The contributions depend on the annual earnings of their employees and the nature of activities.
Social security rates for 2011/2012:
Employer
- 1% of employee’s salary as unemployment insurance contribution capped at ZAR 1’497.36 per year,
- 1% of employer’s payroll per month for the skills development levy. Employers are exempt if the employer’s payroll has been less than ZAR 500,000 for the previous 12 months,
- varying fee for workmen’s compensation.
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1% of salary for unemployment insurance contributions capped at ZAR 1’497.36 per year.
