Tax Deduction Tables
For the latest tax tables including:-
2018 (1 March 2017 - 28 February 2018)
Medical Tax Credit Rates
Medical Scheme Fees Tax Credit was introduced from 1 March 2012 but didn't affect all categories of taxpayers at once. There are two different start dates depending on the age of the taxpayer:
Capped deduction prior to 2013 tax year
Important: The amounts may vary depending on the number of months in the tax year that a taxpayer and dependents are members of a medical scheme fund.
Top Tip: A deduction for contributions and out-of-pocket medical expenses (qualifying expenses) paid depends on a taxpayer’s age and whether the taxpayer, spouse or any of their dependant(s) has a disability. For more information on see Medical Scheme Fees Tax Credits.
Capital Gains Tax
Capital gains tax (CGT) is not a separate tax but forms part of income tax. A capital gain arises when you dispose of an asset on or after 1 October 2001 for proceeds that exceed its base cost.
The relevant legislation is contained in the Eighth Schedule to the Income Tax Act 58 of 1962.
Capital gains are taxed at a lower effective tax rate than ordinary income. Pre- 1 October 2001 CGT capital gains and losses are not taken into account. Not all assets attract CGT and certain capital gains and losses are disregarded.
A withholding tax applies to non-resident sellers of immovable property (section 35A). The amount withheld by the buyer serves as an advance payment towards the seller’s final income tax liability.
Who is it for?
CGT applies to individuals, trusts and companies.
A resident, as defined in the Income Tax Act 58 of 1962, is liable for CGT on assets located both in and outside South Africa.
A non-resident is liable to CGT only on immovable property in South Africa or assets of a “permanent establishment” (branch) in South Africa. Certain indirect interests in immovable property such as shares in a property company are deemed to be immovable property.
Some persons such as retirement funds are fully exempt from CGT. Public benefit organisations may be fully or partially exempt.
18 April 2016 - Enhancements to the Income Tax Return for Companies (ITR14) As part of the continued process to maintain high levels of SARS efficiency and compliance, further enhancements will be introduced to the Income Tax Return for Companies (ITR14) from 18 April 2016. Click here to read more.
What is it?
Donations tax is tax payable at a flat rate of on the value of property disposed of by a donation (sections 54 to 64 of the Income Tax Act, 1962). Donations tax is levied at a flat rate of 20% on the value of the property donated
A donation includes property disposed of for an inadequate consideration (section 58).
Section 56(1) contains a list of exempt donations which include amongst others donations between spouses and donations to approved public benefit organisations.
A donation will be exempt if the total value of donations for a year of assessment does not exceed:
Who is it for?
Donations tax applies to any individual, company or trust that is a resident as defined in section 1 of the Income Tax Act, 1962.
Non-residents are not liable for donations tax.
The person making the donation (donor) is liable for the tax but if the donor fails to pay the tax within the set period the donor and donee are jointly and severally liable for the tax (section 59).
Public companies and public benefit organisations amongst others are exempt from donations tax (section 56(1) (h) and (n)).
How does Donations Tax work in relation to an inheritance?, click here for more information.
What steps must I take?
After making a donation you should fill in form IT144 (Declaration by donor / donee) and send it to SARS with your payment.
When should it be paid?
Donations tax must be paid by the end of the month following the month during which the donation takes effect or such longer period as SARS may allow (section 60(1)). Payment must be accompanied by form IT144 (section 60(4)).
A donation takes effect when all legal formalities for a valid donation have been complied with (section 55(3)).