Red denotes recent changes.
| Normal tax | 2010 | 2009 |
|---|
| Type of Income |
Rate of tax % |
| Gold mining 1 |
|
|
| Long-term insurance |
|
|
|
|
30 |
30 |
|
|
28 |
28 |
|
|
0 |
0 |
| Small business corporation |
|
|
| R0 - R54 200 |
0 |
0 |
| R54 201 - R300 000 |
10 |
10 |
| R300 001 and above |
28 |
28 |
| Personal service provider company |
33 |
33 |
| All other income (i.e. "ordinary" companies) |
28 |
28 |
| Foreign resident companies which trade |
|
|
| in South Africa through a branch/ agency 3 |
33 |
33 |
| Secondary Tax on Companies (STC) 2,3,4 | |
|---|
| On dividends declared |
Rates of tax % |
|
|
12.5 |
|
|
10 |
Notes - Rate is determined according to a formula.
- The tax rate is applied to the net amount, being dividends declared less all dividends (except taxable foreign dividends if applicable) receivable during the "dividend cycle".
- South African branches of foreign resident companies are exempt from STC.
- STC is to be replaced with a dividends tax which will be levied at the rate of 10% on all dividends paid by companies with effect from a date to be determined by the Minister of Finance.
- A simplified turnover based presumptive tax system (which is elective and applies to years of assessments commencing on or after 1 March 2009) has been implemented for certain businesses with a turnover of up to R1 million per year.
| Turnover tax for micro businesses |
|
|---|
| Turnover (R) |
Tax liability |
| 0 - 100 000 |
0% |
| 100 001 - 300 000 |
1% of each R1 abover R100 000 |
| 300 001 - 500 000 |
R2 000 + 3% of the amount above R300 000 |
| 500 001 - 750 000 |
R8 000 + 5% of the amount above R500 000 |
| 750 001 - 1 000 00 |
R20 500 + 7% of the amount above R750 000 |
|
Information based on legislation as at 11 February 2009.
