Let us submit and complete your income and provisional tax return to SARS from R250 online through e filing and do all the tax preparation correctly first time in a professional way with all the applicable and necessary deductions. 

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028-5143914 /082 377 1953   

INCOME TAX: INDIVIDUALS AND TRUSTS 2012

INCOME TAX: INDIVIDUALS AND TRUSTS 2012

Tax rates (year of assessment ending 29 February 2012)

Individuals and special trusts

Taxable Income (R) Rate of Tax (R)

0 - 150 000 18% of taxable income

150 001 - 235 000 27 000 + 25% of taxable income above 150 000

235 001 - 325 000 48 250 + 30% of taxable income above 235 000

325 001 - 455 000 75 250 + 35% of taxable income above 325 000

455 001 - 580 000 120 750 + 38% of taxable income above 455 00

580 001 and above 168 250 + 40% of taxable income above 580 000

Trusts other than special trusts Rate of Tax - 40%

Tax Rebates

Rebates

Primary R10 755

Secondary (Persons 65 and older) R 6 012

Tertiary (Persons 75 and older R 2 000

Tax Thresholds

Age Tax Threshold

Below age 65 R 59 750

Age 65 to below 75 R 93 150

Age 75 and over R104 261

Provisional Tax

A provisional taxpayer is any person who earns income other

than remuneration or an allowance or advance payable by

the person’s principal. The following individuals are exempt

from the payment of provisional tax:

• Individuals below the age of 65 who do not carry on a

business and whose taxable income

 will not exceed the tax threshold for the tax year; or

 from interest, dividends and rental will be R20 000 or

less for the tax year.

• Individuals age 65 and older if their taxable income for the

tax year

 consists exclusively of remuneration, interest, dividends

or rent from the letting of fixed property; and

 is R120 000 or less.

Retirement fund lump sum withdrawal benefits

Taxable Income (R) Rate of Tax (R)

0 - 22 500 0% of taxable income

22 501 - 600 000 18% of taxable income above 22 500

600 001 - 900 000 103 950 + 27% of taxable income above 600 000

900 001 and above 184 950 + 36% of taxable income above 900 000

Retirement fund lump sum withdrawal benefits consist of

lump sums from a pension, pension preservation, provident,

provident preservation or retirement annuity fund on

withdrawal. Tax on a specific retirement fund lump sum

withdrawal benefit (X) is equal to

• tax determined by applying the tax table to the aggregate

of that lump sum X plus all other retirement fund lump

sum withdrawal benefits accruing from March 2009 and

all retirement fund lump sum benefits accruing from

October 2007 and all severance benefits received or

accruing from March 2011; less

• tax determined by applying the tax table to the aggregate

of all retirement fund lump sum withdrawal benefits

accruing before lump sum X from March 2009 and all

retirement fund lump sum benefits accruing from October

2007 and all severance benefits received or accruing from

March 2011.

Retirement fund lump sum benefits or severance benefits

Taxable Income (R) Rate of Tax (R)

0 - 315 000 0% of taxable income

315 001 - 630 000 18% of taxable income above 315 000

630 001 - 945 000 56 700 + 27% of taxable income above 630 000

945 001 and above 141 750 + 36% of taxable income above 945 000

Retirement fund lump sum benefits consist of lump sums

from a pension, pension preservation, provident, provident

preservation or retirement annuity fund on death, retirement

or termination of employment due to redundancy or

termination of employer’s trade. Tax on a specific retirement

fund lump sum benefit or a severance benefit (Y ) is equal

to –

• tax determined by applying the tax table to the aggregate

of that lump sum or severance benefit Y plus all other

retirement fund lump sum benefits accruing from October

2007 and all retirement fund lump sum withdrawal

benefits accruing from March 2009 and all other severance

benefits received or accruing from March 2011; less

• tax determined by applying the tax table to the aggregate

of all retirement fund lump sum benefits accruing before

lump sum Y from October 2007 and all retirement fund

lump sum withdrawal benefits accruing from March 2009

and all severance benefits received or accruing before

severance benefit Y from March 2011.

Foreign Dividends

Most dividends received by individuals from foreign entities

are taxable.

Exemptions

Interest and dividends

• Interest earned by any natural person under 65 years of

age, up to R22 800 per annum, and persons 65 and older,

up to R33 000 per annum, are exempt from taxation.

Foreign interest and foreign dividends are only exempt up

to R3 700 out of the total exemption.

• Interest is exempt where earned by non-residents who are

physically absent from South Africa for 183 days or more

per annum and who are not carrying on business in South

Africa.

Deductions

Current pension fund contributions

The greater of

• 7,5% of remuneration from retirement funding

employment, or

• R1 750.

Any excess may not be carried forward to the following

year of assessment.

Arrear pensions fund contributions

Maximum of R1 800 per annum. Any excess over R1 800

may be carriedforward to the following year of assessment.

Current retirement annuity fund contributions

The greater of

• 15% of taxable income other than from retirement

funding employment, or

• R3 500 less current deductions to a pension fund, or

• R1 750.

Any excess may be carried forward to the following year of

assessment.

Arrear retirement annuity fund contributions

Maximum of R1 800 per annum. Any excess over R1 800

may be carried forward to the following year of assessment.

Medical and disability expenses

• Taxpayers 65 and older may claim all qualifying

expenditure.

• Taxpayers under 65 may claim all qualifying medical

expenses where the taxpayer or the taxpayer’s spouse or

child is a person with a disability.

• Other taxpayers under 65 may deduct monthly

contributions to medical schemes up to R720 for each

of the first two dependants on their medical scheme and

R440 for each additional dependant. In addition they

can claim a deduction for medical scheme contributions

above the caps and any other medical expenses limited

to the amount which exceeds 7,5% of taxable income

(excluding retirement fund lump sums).

Donations

Deductions in respect of donations to certain public benefit

organisations are limited to 10% of taxable income before

deducting medical expenses (excluding retirement fund

lump sums).

Allowances

Subsistence allowances and advances

Where the recipient is obliged to spend at least one night

way from his/her usual place of residence on business and

the accommodation to which that allowance or advance

relates is in the Republic and the allowance or advance is

granted to pay for

• meals and incidental costs, an amount of R286 per day is

deemed to have been expended;

• incidental costs only, an amount of R88 for each day which

falls within the period is deemed to have been expended

Where the accommodation to which that allowance or

advance relates is outside the Republic, a specific amount

per country is deemed to have been expended. Details of

these amounts are published on the SARS website under

Legal & Policy / Legislation / Regulations and Government

Notices / Income Tax Act, 1962

Travelling allowance

Rates per kilometre which may be used in determining the

allowable deduction for business travel, where no records of

actual costs are kept are determined by using the following

table.

Value of the vehicle Fixed Fuel Maintenance

(including VAT) cost cost cost

(R) (R p.a.) (c/km) (c/km)

0 - 60 000 19 492 64.6 26.4

60 001 - 120 000 38 726 68.0 29.2

120 001 - 180 000 52 594 71.3 31.9

180 001 - 240 000 66 440 77.7 35.0

240 001 - 300 000 79 185 87.0 44.7

300 001 - 360 000 91 873 93.9 54.2

360 001 - 420 000 105 809 100.9 65.8

420 001 - 480 000 119 683 113.1 67.6

exceeding 480 000 119 683 113.1 67.6

Notes:

• 80% of the travelling allowance must be included in the

employee’s remuneration for the purposes of calculating

PAYE. The percentage is reduced to 20% if the employer is

satisfied that at least 80% of the use of the motor vehicle

for the tax year will be for business purposes.

• On assessment the fringe benefit for the tax year is reduced

by the ratio of the distance travelled for business purposes

substantiated by a log book divided by the actual distance

travelled during the tax year.

• On assessment further relief is available for the cost of

licence, insurance, maintenance and fuel for private travel

if the full cost thereof has been borne by the employee

and if the distance travelled for private purposes is

substantiated by a log book.

Interest-free or low-interest loans

The difference between interest charged at the official rate

and the actual amount of interest charged, is to be included

in gross income.

Residential accommodation

The fringe benefit to be included in gross income is the

greater of the benefit calculated by applying a prescribed

formula or the cost to the employer

The formula will apply if the accommodation is owned by

the employer, or an associated institution in relation to the

employer, or under certain limited circumstances where it is

not owned by the employer.

INCOME TAX: COMPANIES

Financial years ending on any date between 1 April 2011

and 31 March 2012

Type Rate of Tax

Companies 28%

Personal service provider companies 33%

Foreign resident companies which earn income from a source

in South Africa 33%

I