Summary of Taxes
Fortunately, as an individual not all of these will apply to you; however, during your life as a taxpayer you will probably have to pay most of them at some point!
These different taxation types may be categorised as follows:
- Income tax, also referred to as normal tax. The following taxes are included in normal tax
- PAYE
- Provisional tax
- Capital Gains tax (CGT)
- Withholding of amounts of payments to non-resident sellers of immovable property
- Taxation of foreign entertainers and sportspersons
- Withholding tax on interest
- Withholding tax on royalties
- Donations tax
- Dividend tax
- Turnover tax on micro-businesses
- Value Added Tax (VAT)
- Duties and levies which include
- Transfer duty
- Estate duty
- Skills Development Levy (SDL)
- Unemployment Insurance Levy (UIF)
- Securities Transfers Tax (STT)
- Air passenger departure tax
- Custom duties
- Environmental levies
- Plastic bag levy
- Incandescent light bulb levy
- Electricity levy
- Carbon levy
- Tyre levy
- Excise duties
- Fuel levy
- Road accident levy
- Anti-dumping, countervailing, and safeguarding duties on imported goods
- Diamond export levy
- Mineral and petroleum resources royalties
- International oil pollution compensation fund contributions levy
A number of these taxes have different rates whether they are applied to individuals or companies e.g. the rate of income tax for individuals varies from 18% – 45% while companies pay income tax at a flat rate of 28%.
The taxes listed above are all raised by National Government. In additional to these taxes Provincial Governments levy rates on the value of fixed property.
How do these taxes affect you?
While many of these taxes affect you directly, you are also often affected where a tax has had to paid by a company e.g. custom duties, as this “cost” will then be included in the price that you are charged.
Below is a summary as to what your exposure is to the taxes you are most likely to be directly affected by as an individual.
| Tax Type | Method | Rate |
| PAYE, Provisional | Variable | 18% – 45% |
| VAT | 15% | |
| CGT | Up to a maximum of | 18% |
| Donations Tax | 20%, (<R30M) 25% (>R30M) | |
| Dividends tax | 20% | |
| Withholding tax on interest | 15% | |
| Estate duty | On value of estate | 20%, (<R30M) 25% (>R30M) |
| Transfer duty | Up to a maximum of | 13% |
| Fuel levy | Per litre of fuel | R3.93 |
| Road Accident fund levy | Per litre of fuel | R2.18 |
| UIF | On your salary | 1% (max 177.12) |
| Securities Transfer tax | On value of shares | 0.25% |
| Plastic bag levy | Per bag | 25 cents |
While the above table reflects the rates at which taxes are paid there are certain deductions and rebates which individuals may claim so the actual rates paid are lower.
So, what do you actually pay?
To try and answer this question assume a taxpayer earns the monthly amounts per the table below and purchases 150 litres of fuel/month spends 50% of on “vatable supplies” (on net income after fuel). The amount of tax related just to income tax, VAT and fuel will be as follows:
| Salary | R10 000.00 | R15 000.00 | R25 000.00 | R40 000.00 |
| Income tax and UIF | R 667.62 | R 1 567.62 | R3 926.26 | R8 470.84 |
| VAT | R 532.24 | R 836.08 | R 1 404.03 | R 2 176.13 |
| Fuel | R 916.50 | R 916.50 | R 916.50 | R 916.50 |
| Tax paid | R 2 116.36 | R 3 320.20 | R 6 246.79 | R11 563.47 |
| % of salary | 21.16% | 22.13% | 24.99% | 28.84% |
The above taxes do not include the various customs and excise duties included in many of the items that you buy as well the various environmental levies (plastic bags etc.).
Conclusion
Understanding the real effect that the various taxes have on you will give you a better understanding as to what you actually have available to budget and spend each month.
