INDIVIDUAL TAXATION

Since March 2001, the Republic of South Africa has taxed residents on their worldwide income. Married couples are assessed and charged as separate individuals. If the property is considered part of the conjugal estate, income is divided between husband and wife in equal portions.

The tax year is from 01 March of the current year to 28 February of the succeeding year. The tax year 2019-2020 is from 01 March 2019 up to 28 February 2020. The tax year 2020-2021 is from 01 March 2020 up to 28 February 2021.

INCOME TAX

Income is aggregated from all sources and taxed at progressive rates. Taxable income is computed as gross income less deductions and allowances. The following tax rates apply for the tax year March 2012 - February 2013.

Residents are entitled to tax rebates and deductions.

The tax thresholds for 2018-2019 are as follows:

• ZAR78,150 (USD5,582) for persons under 65 years of age
• ZAR121,780 (USD8,643) for persons 65 years to under 75 years of age
• ZAR135,300 (USD9,368) for persons 75 years of age and over

The tax thresholds for 2017-2018 are as follows:

• ZAR75,750 (USD5,411) for persons under 65 years of age
• ZAR117,300 (USD8,379) for persons 65 years to under 75 years of age
• ZAR131,150 (USD1,740) for persons 75 years of age and over

RENTAL INCOME
Rental income is taxed at progressive rates. Interest payments, insurance premiums, agent´s commission, and maintenance costs are deducted from the rental income.

CAPITAL GAINS
Capital gains realized from selling real property are subject to income tax at progressive rates. To compute the gain, acquisition costs, transfer costs, and property improvement costs are deducted from the selling price. A further allowable annual deduction of is subtracted. The annual deduction is ZAR40,000 (US$2,857). The taxable gain is 40% of the resulting amount.

The disposal of property is assumed on death or emigration, and triggers the payment of capital gains tax (CGT).

PROPERTY TAXATION

Property Tax

Property tax is imposed by the local government at approximately 0.07% to 0.4% of the market value of the property, depending on its size and location.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are subject to corporate income tax at a flat rate of 28%. Income-generating expenses are deductible when calculating taxable income.

CAPITAL GAINS
Capital gains are subject to corporate income tax at a flat rate of 28%. To compute the gain, acquisition costs, transfer costs, and property improvement costs are deducted from the selling price. The taxable gain is 66.6% of the resulting amount.