Country Guides

Taxes in South Africa

Employers in South Africa make social security contributions to the Unemployment Insurance Fund (UIF), the Skills Development Levy (SDL) and the Compensation for Occupational Diseases. UIF and SDL payments are made monthly (defined below), are made on a monthly, while the Compensation for Occupational Diseases is paid once a year.

Employer Social Security contribution

Contribution: Unemployment Insurance Fund (UIF)

Contribution amount: Total of 2% each month, with the employer contributing 1%

Contribution: Skills Development Levy (SDL)

Contribution amount: 1% of total monthly payroll (including wages, overtime, leave, bonuses, fees, commissions and lump sum payments)

Contribution: Compensation Fund

Contribution amount: The annual assessment fee due to the Compensation Fund is calculated based on employees' earnings according to an assessment tariff based on the risks associated with the type of work being done. Before 31 March each year, all employers (including contractors) must submit a statement of earnings paid to all their workers from 1 March to 28/29 February.

Contribution: Collective Labour/Bargaining

Contribution amount: Industry dependent.

Employees in South Africa pay income tax via PAYE—Pay As You Earn—and contribute to the Unemployment Social Fund.

Income tax

Gross income: R0 - R237,100

Tax rate: 18%

Gross income: R237,101 - R370,500

Tax rate: R42,678 + 26% of taxable income above R237,100

Gross income: R370,501 - R512,800

Tax rate: R77,362 + 31% of taxable income above R370,500

Gross income: R512,801 - R673,000

Tax rate: R121,475 + 36% of taxable income above R512,800

Gross income: R673,001 - R857,900

Tax rate: R179,147 + 39% of taxable income above R673,000

Gross income: R857,901 - R1,817,000

Tax rate: R251,258 + 41% of taxable income above R857,900

Gross income: R1,817,001 - above

Tax rate: R644,489 + 45% of taxable income above 1,817,000

In addition to these figures, there are also certain rebates and thresholds associated with age:

Tax rebates and thresholds

  • Primary rebate: R17,235 (€862)
  • Secondary rebate (65 and older): R9,444 (€472 )
  • Tertiary rebate (75 and older): R3,145 (€157)

Tax thresholds

  • Below 65 years: R95,750 (€4,788)
  • 65 years and older: R148,217 (€7,411)
  • 75 years and older: R165,689 (€8,284)

The EUR figures have been determined by applying an exchange rate of 1 ZAR = 0.05 EUR.

Employee social security contribution

As noted above, UIF is paid by both employer and employee, each contributing 1% each month of salary for a total of 2% per month, per employee.

Contribution: Unemployment Insurance Fund (UIF)

Contribution amount: 2% of employee salary per month, 1% by employee

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