South Africa: Worked Example of Tax on Rent

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Tax Example: Rent

Non-resident couple's joint monthly rental income1		US$1,500	US$6,000	US$12,000
Annual Rental Income		18,000	72,000	144,000
Less Costs2		(5,201)	(27,184)	(54,585)
= Taxable Income		12,799	44,816	89,415
Income Tax Rates
Up to ZAR100,000	18%	2,304	2,583	2,583
ZAR100,000 – ZAR160,000	25%	-	2,152	2,152
ZAR160,000 – ZAR220,000	30%	-	4,018	4,018
ZAR220,000 – ZAR300,000	35%	-	2,968	2,968
ZAR300,000 – ZAR400,000	38%	-	672	5,453
Over ZAR400,000	40%	-	-	12,806
= Income Tax Due		2,304	12,393	29,980
Additional Taxes
Less Tax Rebates3		(1,033)	(1,033)	(1,033)
Annual Income Tax Due		US$1,301	US$11,360	US$28,947
Tax Due as % of Gross Income		7.23%	15.78%	20.10%
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on December 14, 2006.

Notes

¹ The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner). Exchange rate used: US$1 = ZAR6.96885.

² Estimated values only. Only expenses actually incurred may be deducted such as repairs and maintenance, insurance, collector’s commission, and bank charges.

³ Tax rebates per individual is ZAR7,200 (US$1,033).

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