South African Income Tax Rates from 2003 to 2009

Individuals - Rates

2002/20032003/20042004/20052005/20062006/20072007/20082008/2009
0 - 40 00018%0 - 70 00018%0 - 74 00018%0 - 80 00018%0 - 100 00018%0 - 112 50018%0 - 122 00018%
40 001 - 70 000R7 200 + 25% of the amount above R40 00070 001 - 110 000R12 600 + 25% of the amount above R70 00074 001 - 115 000R13 320 + 25% of the amount above R74 00080 001 - 130 000R14 400 + 25% of amount above R80 000100 001 - 160 000R18 000 + 25% of amount above R100 000112 501 - 180 000R20 250 + 25% of amount above R112 500122 001 - 195 000R21 960 + 25% of the amount above R122 000
80 001 - 110 000R17 200 + 30% of the amount above R80 000110 001 - 140 000R22 600 + 30% of the amount above R110 000115 001 - 155 000R23 570 + 30% of the amount above R115 000130 001 - 180 000R26 900 + 30% of amount above R130 000160 001 - 220 000R33 000 + 30% of amount above R160 000180 001 - 250 000R37 125 + 30% of amount above R180 000195 001 - 270 000R40 210 + 30% of the amount above R195 000
110 001 - 170 000R26 200 + 35% of the amount above R110 000140 001 - 180 000R31 600 + 35% of the amount above R140 000155 001 - 195 000R35 570 + 35% of the amount above R155 000180 001 - 230 000R41 900 + 35% of amount above R180 000220 001 - 300 000R51 000 + 35% of amount above R220 000250 001 - 350 000R58 125 + 35% of amount above R250 000270 001 - 380 000R62 710 + 35% of the amount above R270 000
170 001 - 240 000R47 200 + 38 % of the amount above R170 000180 001 - 255 000R45 600 + 38 % of the amount above R180 000195 001 - 270 000R49 570 + 38 % of the amount above R195 000230 001 - 300 000R59 400 + 38% of amount above R230 000300 001 - 400 000R79 000 + 38% of amount above R300 000350 001 - 450 000R93 125 + 38% of amount above R350 000380 001 - 490 000R101 210 + 38% of the amount above R380 000
240 001 and aboveR73 800 + 40% of the amount above R240 000255 001 and aboveR74 100 + 40% of the amount above R255 000270 001 and aboveR78 070 + 40% of the amount above R270 000300 001 and aboveR86 000 + 40% of amount above R300 000400 001 and aboveR117 000 + 40% of amount above R400 000450 001 and aboveR131 125 + 40% of amount above R450 000490 001 and aboveR143 010 + 40% of the amount above R490 000

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

Individuals - Rebates

2002/20032003/20042004/20052005/20062006/20072007/20082008/2009
Primary rebateR4 860R5 400R5 800R6 300R7 200R7 740R8 280
Additional age 65 and over rebateR3 000R3 100R3 200R4 500R4 500R4 680R5 040
Tax threshold below age 65R27 000R30 000R32 222R35 000R40 000R43 000R46 000
Tax threshold age 65 and overR42 640R47 222R50 000R60 000R65 000R69 000R74 000

Individuals - Interest and Dividends Exemption

2002/20032003/20042004/20052005/20062006/20072007/20082008/2009
Individuals below age 65R6 000R10 000R11 000R15 000R16 500R18 000R19 000
Individuals 65 and overR10 000R15 000R16 000R22 000R24 500R26 000R27 500
Portion that may be offset against foreign dividendsR1 000R1 000R1 000R2 000R2 500R3 000R3 200

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%.

Corporate

2002/20032003/20042004/20052005/20062006/20072007/20082008/2009
Standard30%30%30%29%29%29%28%
Small Business
 0 - 150 000
 150 001 and above
15%
30%
15%
30%
15%
30%
N/AN/AN/AN/A
Small Business
 0 - 35 000
 35 001 - 250 000
 250 001 and above

N/A

N/A

N/A
0%
10%
29%

N/A

N/A

N/A
Small Business
 0 - <65 Threshold
<65 Threshold - 300 000
 300 001 and above

N/A

N/A

N/A

N/A
0%
10%
29%
0%
10%
29%
0%
10%
28%
Personal Service35%35%35%34%34%34%33%
Secondary Tax on Companies 12.5%12.5%12.5%12.5%12.5%12.5%10.0%
Combined Standard
 1:1 Dividend Cover
 3:1 Dividend Cover
37.78%
32.59%
37.78%
32.59%
37.78%
32.59%
36.89%
31.63%
36.89%
31.63%
36.89%
31.63%
34.55%
30.18%

Secondary Tax on Companies (STC) is levied on the distribution of profits by companies. (Close corporations are considered to be companies for tax purposes.) The combined rate of tax is thus dependent on the amount of dividends a 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 are then exempt in the hands of shareholders, in contrast to many jurisdictions where dividends received are subject to tax. 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%. Depending on the renegotiation of certain double taxation agreements, it is envisaged that the tax will be converted into a final withholding tax on dividends by 2009.

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


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