Employers are required to make annual contributions to the COIDA fund. COIDA contributions are salary costs that cannot be deducted from the employee`s salary, with a maximum salary cap per employee of ZAR 484.5200 per year. Rates vary depending on the employer`s industry. Many are unaware of these obligations and think that as an expat in the United States, they do not have to pay or file tax returns. Oh, really! For more information and help filing your U.S. tax returns from South Africa, check out our guide to filing U.S. tax returns from abroad. Residents who pay taxes in South Africa must complete an annual tax return form and file it with SARS. The South African tax year runs from 1 March to 28/29 February. The tax period when people file their tax return forms runs from July to November, depending on the filing method. Individuals and corporate taxpayers are required to make the required payments with their South African tax returns. You will have to pay South African taxes if you work in South Africa or if you own a South African business.

The amount you pay depends on certain factors, such as whether you are a resident or a non-resident. The South African tax system is based on residency. With regard to the tax base of residence, anyone considered a South African tax resident is subject to the taxation of global income and capital gains. Income tax is deducted at progressive rates on a person`s taxable income for the year, calculated by deducting eligible deductions and tax amounts from gross income. Non-residents are only taxable on South African income and capital gains from the sale of real estate in South Africa. In addition to increasing revenues, this tax serves to prevent the consumption of products considered harmful to the environment. The rates of these taxes in South Africa vary from product to product. Indirect taxes such as value-added tax (VAT) and fuel tax are incurred, as are social security contributions in South Africa. A penalty of 10% is levied for late payment of social security contributions and a penalty of 1% of the total annual PAYE is levied for the late submission of the employer`s semi-annual votes for each month in which the declaration is late (limited to a total penalty of 10% / 10 months).

Corporate tax in South Africa is calculated at a flat rate of 28% for all companies. Small businesses are taxed at lower progressive rates, starting at 7% of taxable income above R83 100 and 28% for income above R550 000. On 1 April 2018, a tax on sugar-sweetened beverages was introduced in the form of the health promotion tax on sugar-sweetened beverages. The basis of assessment of the tax is the sugar content of the drink. The tax rate is 2.21 cents per gram for a sugar content greater than 4 g / 100 ml as of April 1, 2019. For powdered and liquid concentrates, the sugar content is calculated on the basis of the total volume of the prepared beverage. The good news is that it is possible to get professional help. If you`re filing your tax returns in South Africa for the first time, hiring an accountant can be a smart decision. Similarly, you should consider independent financial advice on your tax obligations when starting a business in South Africa.

Local communities are increasing rates on the ground. These rates are based on a percentage of the municipal assessment of land and improvements and vary from municipality to municipality. In general, a higher rate is levied on properties that are divided into areas for professional use. Employers are required to withhold compensation as you earn (PAYE) on behalf of their employees. PAYE is payable monthly to SARS, calculated on the basis of the remuneration paid to an employee. Rates vary depending on the employee`s compensation. VAT is an indirect tax that largely targets domestic consumption of goods and services, as well as goods imported into South Africa. The tax is designed to be paid primarily by the final consumer or buyer in South Africa. It is levied at two rates, namely a standard rate and a zero rate (0%). South Africa levies progressive tax rates on the annual income of natural persons and on the income of the self-employed The income of taxpayers above the threshold is subject to tax at marginal rates between 18 and 45%.