SARS Tax Table 2021

2021 tax year (1 March 2020 – 28 February 2021)

– See the changes from the previous year

​Taxable income (R)​Rates of tax (R)
1 – 205 90018% of taxable income
205 901 – 321 60037 062 + 26% of taxable income above 205 900
321 601 – 445 10067 144 + 31% of taxable income above 321 600
445 101 – 584 200105 429 + 36% of taxable income above 445 100
584 201 – 744 800155 505 + 39% of taxable income above 584 200
744 801 – 1 577 300218 139 + 41% of taxable income above 744 800
1 577 301 and above559 464 + 45% of taxable income above 1 577 300

NEW TAX PROPOSALS FOR 2021

The corporate income tax rate will be lowered to 27% for companies with years of assessment commencing on or after 1 April 2022. This will be done alongside a broadening of the corporate income tax base by limiting interest deductions and assessed losses.

“We will give consideration to further rate decreases to make our tax system more attractive. Government will do this in a revenue-neutral manner,” Mboweni told MPs

“Government also intends to leverage the insights of the Davis Tax Committee as we undertake this reform.”

The personal income tax brackets will be increased by 5%, which is more than inflation. This will provide R2.2 billion in tax relief. Most of that relief will reduce the tax burden on the lower and middle-income households.

This means that if you are earning above the new tax-free threshold of R87 300, you will have at least an extra R756 in your pocket after 1 March 2021, according to Mboweni.

Fuel levies will increase by 27 cents per litre, comprising 15 cents per litre for the general fuel levy, 11 cents per litre for the Road Accident Fund levy and 1 cent per litre for the carbon fuel levy.

TAX RATES AND REBATES

Individuals, Estates & Special Trusts

Year ending 28 February 2021

TAXABLE INCOMERATE OF TAX (R)
R0 – R205 90018% of taxable income
R205 901 – R321 600R37 062 + 26% of taxable income above R205 900
R321 601 – R445 100R67 144 + 31% of taxable income above R321 600
R445 101 – R584 200R105 429 + 36% of taxable income above R445 100
R584 201 – R744 800R155 505 + 39% of taxable income above R584 200
R744 801 – R1 577 300R218 139 + 41% of taxable income above R744 800
R1 577 301 and aboveR559 464 + 45% of taxable income above R1 577 300

Year ending 29 February 2020

TAXABLE INCOMERATE OF TAX (R)
R0 – R195 85018% of taxable income
R195 851 – R305 850R35 253 + 26% of taxable income above R195 850
R305 851 – R423 300R63 853 + 31% of taxable income above R305 850
R423 301 – R555 600R100 263 + 36% of taxable income above R423 300
R555 601 – R708 310R147 891 + 39% of taxable income above R555 600
R708 311 – R1 500 000R207 448 + 41% of taxable income above R708 310
R1 500 000 and aboveR532 041 + 45% of taxable income above R1 500 000
REBATES2020/20212019/2020
PrimaryR14 958R14 220
Secondary (Persons 65 and older)R8 199R7 794
Tertiary (Persons 75 and older)R2 736R2 601
AGETAX THRESHOLD
Below age 65R83 100R79 000
Age 65 to below 75R128 650R122 300
Age 75 and olderR143 850R136 750

MEDICAL TAX CREDIT RATES

PER MONTH (R)2020/20212019/2020
For the taxpayer who paid the medical
scheme contributions
R319R310
For the first dependantR319R310
For each additional dependant(s)R215R209

TAKE-HOME PAY

The table below sets out a comparison of the take-home pay that an individual can expect based on the 2020 and 2021 tax tables:

TAKE-HOME PAY
2020/20212020/20212020/20212019/20202019/20202019/2020
MONTHLY GROSSANNUAL
EQUIVALENT
UNDER 6565 – 74OVER 75UNDER 6565 – 74OVER 75
R6 583,33R79 000,00R6 583,33R6 583,33R6 583,33R6 583,33R6 583,33R6 583,33
R6 925,00R83 100,00R6 925,00R6 925,00R6 925,00R6 863,50R6 925,00R6 925,00
R10 000,00R120 000,00R9 446,50R10 000,00R10 000,00R9 385,00R10 000,00R10 000,00
R15 000,00R180 000,00R13 546,50R14 229,75R14 457,75R13 485,00R14 134,50R14 351,25
R20 000,00R240 000,00R17 419,17R18 102,42R18 330,42R17 290,67R17 940,17R18 156,92
R30 000,00R360 000,00R24 659,17R25 342,42R25 570,42R24 465,04R25 114,54R25 331,29
R40 000,00R480 000,00R31 413,75R32 097,00R32 325,00R31 128,75R31 778,25R31 995,00
R50 000,00R600 000,00R37 774,25R38 457,50R38 685,50R37 417,75R38 067,25R38 284,00
R80 000,00R960 000,00R55 715,58R56 398,83R56 626,83R55 298,26R55 947,76R56 164,51
R110 000,00R1 320 000,00R73 415,58R74 098,83R74 326,83R72 998,26R73 647,76R73 864,51
R130 000,00R1 560 000,00R85 215,58R85 898,83R86 126,83R84 598,25R85 247,75R85 464,50

The table below sets out a comparison of the PAYE that would have been/will be deducted from an individual’s salary in 2020 and 2021:

TAKE-HOME PAY
2020/20212020/20212020/20212019/20202019/20202019/2020
MONTHLY GROSSANNUAL
EQUIVALENT
UNDER 6565 – 74OVER 75UNDER 6565 – 74OVER 75
R6 583,33R79 000,00
R6 925,00R83 100,00R61,50
R10 000,00R120 000,00R553,50R615,00
R15 000,00R180 000,00R1 453,50R770,25R542,25R1 515,00R865,50R648,75
R20 000,00R240 000,00R2 580,83R1 897,58R1 669,58R2 709,33R2 059,83R1 843,08
R30 000,00R360 000,00R5 340,83R4 657,58R4 429,58R5 534,96R4 885,46R4 668,71
R40 000,00R480 000,00R8 586,25R7 903,00R7 675,00R8 871,25R8 221,75R8 005,00
R50 000,00R600 000,00R12 225,75R11 542,50R11 314,50R12 582,25R11 932,75R11 716,00
R80 000,00R960 000,00R24 284,42R23 601,17R23 373,17R24 701,74R24 052,24R23 835,49
R110 000,00R1 320 000,00R36 584,42R35 901,17R35 673,17R37 001,74R36 352,24R36 135,49
R130 000,00R1 560 000,00R44 784,42R44 101,17R43 873,17R45 401,75R44 752,25R44 535,50

INTEREST EXEMPTION

SOUTH AFRICAN SOURCED INTEREST
Persons under 65 yearsR23 800
Persons 65 years and olderR34 500

South African sourced interest income earned by non-residents is exempt if the non-resident was absent from the country for an aggregate of 183 days in the 12 months preceding the accrual of that interest.

TAX-FREE INVESTMENTS

Amounts received by or accrued to an individual in respect of particular prescribed investment instruments and policies are exempt. Contributions to these prescribed investments/policies are subject to an annual limit of R36 000 (2020: R33 000). Currently, a R500 000 lifetime limit applies.

DIVIDENDS

Dividends received by individuals from South African companies are generally exempt from income tax, but dividends tax at a rate of 20% is withheld by the entities paying the dividends to the individuals.

FOREIGN DIVIDENDS

Most foreign dividends received by individuals from foreign companies (shareholding of less than 10% in the foreign company) are allowed an exemption equal to 25/45 of the gross dividends received. No deductions are allowed for expenditure incurred to produce foreign dividends.

Foreign withholding taxes are allowed as a credit against taxes payable based on taxable foreign income as a percentage of total taxable income.

FOREIGN INTEREST

Foreign interest received by or accrued to a resident is subject to normal tax in South Africa.

TRAVEL EXPENSES

Rates per kilometre, which may be used in determining the allowable deduction for business travel against an allowance or advance where actual costs are not claimed, are determined by using the following table:

VALUE OF THE VEHICLE
(INCLUDING VAT) (R)
FIXED COST
(R P.A. )
FUEL COST
(C/KM)
MAINTENANCE COST
(C/KM)
R0 – R95 000R31 332105.837.4
R95 001 – R190 000R55 894118.146.8
R190 001 – R285 000R80 539128.351.6
R285 001 – R380 000R102 211138.056.4
R380 001 – R475 000R123 955147.766.2
R475 001 – R570 000R146 753169.677.8
R570 001 – R665 000R169 552175.196.6
Exceeding R665 000R169 552175.196.6
  • If the travel allowance is applicable to a portion of the tax year, the fixed cost is reduced proportionately.
  • Where the travel allowance is based on actual distance travelled by the employee for business purposes, no tax is payable on an allowance paid by an employer to an employee, up to the rate of 398 cents per kilometre regardless of the value of the vehicle or distance travelled. This alternative is not available if other compensation in the form of an allowance or reimbursement (other than for parking or toll fees) is received from the employer in respect of the vehicle.
  • It is compulsory to keep a logbook of travels in order to claim business travel expenses.
  • When claiming actual expenditure, the cost of the vehicle must be limited to R665 000 (2020: R595 000) for the purposes of calculating finance charges and wear and tear.

SUBSISTENCE ALLOWANCE

Where the recipient is obliged to spend at least one night away from his or her usual place of residence on business and the accommodation to which that allowance or advance relates is in the Republic of South Africa and the allowance or advance is granted to pay for:

  • meals and incidental costs, an amount of R452 (2020: R435) per day is deemed to have been expended;
  • incidental costs only, an amount of R139 (2020: R134) 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 of South Africa, a specific amount per country is deemed to have been expended. Details of these amounts are published on the SARS website under Legal Counsel / Secondary Legislation / Income Tax Notices / 2019.

RETIREMENT FUND CONTRIBUTIONS

Contributions to a pension, provident or retirement annuity fund during a tax year are deductible by the member of the fund. The deduction is limited to the greater of:

  • 27.5% of the employee’s remuneration for PAYE purposes (excluding retirement fund lump sums and severance benefits);
    or
  • 27.5% of the employee’s taxable income (excluding retirement fund lump sums and severance benefits).

The deduction is limited to a maximum amount of R 350 000. If contributions exceed the limit during a particular tax year, the contributions are carried over to the next tax year.

DONATIONS

Deductions in respect of donations to certain public benefit organisations are limited to 10% of taxable income (excluding retirement fund lump sums and severance benefits). The amount of donations exceeding 10% of the taxable income is treated as a donation to qualifying public benefit organisations in the following tax year.

Donations tax is levied at a flat rate of 20% on the cumulative value of donations not exceeding R30 million and a rate of 25% on the cumulative value exceeding R30 million. This was effective March 2018. Donations made prior to this date must not be included in the cumulative total.

The first R100 000 of donations in each year by an individual is exempt from donations tax, as well as donations to spouses and certain public benefit organisations.

Donations made by non-residents are also exempt from donations tax.

LUMP SUM BENEFITS

Lump sum benefits in consequence of the withdrawal of membership of a retirement fund, including amounts assigned in terms of divorce settlements in certain circumstances, other than death/retirement lump sum benefits, are taxed according to the following table:

TAXABLE INCOME FROM
WITHDRAWAL BENEFITS
TAX PAYABLE
R0 – R25 0000% of taxable income
R25 001 – R660 00018% of taxable income above R25 000
R660 001 – R990 000R114 300 + 27% of taxable income above R660 000
R990 001 and aboveR203 400 + 36% of taxable income
above R990 000

Lump sum benefits in consequence of retirement/death are taxed according to the following table:

TAXABLE INCOME FROM
RETIREMENT BENEFITS
TAX PAYABLE
R0 – R500 0000% of taxable income
R500 001 – R700 00018% of taxable income above R500 000
R700 001 – R1 050 000R36 000 + 27% of taxable income above R700 000
R1 050 001 and aboveR130 500 + 36% of taxable income above R1 050 000
  • Taxable income is cumulative and includes all lump sum
    payments whether on retirement (after 1 October 2007) or
    withdrawal (after 1 March 2009), or a severance benefit (after 1
    March 2011).

CAPITAL GAINS TAX (CGT)

As from 1 October 2001, Capital Gains Tax (CGT) applies to residents’ worldwide assets and to non-residents’ immovable property or assets of a permanent establishment situated in South Africa.

INCLUSION RATES
Individuals, special trusts and individual policyholder funds40%
EXCLUSIONS
Individuals, special trusts and individual policyholder fundsR40 000
Individuals in year of deathR300 000
Primary residence exclusion on the disposal of a primary residenceR2 million gain/loss
Small business assets (persons over age 55 and market value of assets not more than R10 million)R1.8 million
CGT EXAMPLE
SalaryR180 000
Sale of primary residence
– ProceedsR4 000 000
– Agent commission(R200 000)
– Purchase price(R1 500 000)
– Improvements(R150 000)
Sub totalR2 150 000
Primary residence exclusion(R2 000 000)
Gain from saleR150 000
Sale of shares
– ProceedsR50 000
– Purchase price(R35 000)
Gain from saleR15 000
Total capital gainsR165 000
Less: Annual exclusion(R40 000)
TotalR125 000
Apply inclusion rate (40%)R50 000
Total taxable incomeR230 000

COMMUNAL ESTATE INCOME

Income received by or accrued to a taxpayer, other than that from the carrying on of any trade, but including investment income and capital gain transactions, is deemed to accrue to the spouses, who are married in community of property, in equal portions. This includes income from the letting of fixed property/assets that forms part of the communal estate.

TRUSTS

TRUSTS TAX RATES

RATE OF TAX20152016-20172018-2020
All taxable income40%41%45%

Special trusts are taxed at the rates applicable to individuals, but are not entitled to any rebate. The 40% inclusion rate for a taxable capital gain applies to both types of special trusts and 80% inclusion rate for normal trusts.

A special trust is one created:

  • solely for the benefit of a person affected by a mental illness or serious physical disability which prevents that person from earning sufficient income to maintain him/herself. Where the person for whose benefit the trust was established dies prior to or on the last day of the year of assessment the trust will no longer be regarded as a special trust;
  • as a testamentary trust established solely for the benefit of minor children who are alive and related to the deceased on the date of death. Where the youngest beneficiary turns 18 years of age prior to or on the last day of the year of assessment, the trust will no longer be regarded as a special trust.

SECTION 7C

What is Section 7C?

Section 7C is an anti-avoidance provision designed to prevent avoidance of both donations tax and estate duty through low or no interest loans granted to trusts.

Implications of section 7C?

SARS will deem the interest foregone, on a loan to a trust where the interest is less than the official interest rate, as a donation. This donation is deemed to be made on the last day of the year of assessment of the trust and will be subject to donations tax.

The lender must be either a connected natural person, or a company who granted the loan at the instance of that natural person. This applies to all loan account balances on or after 1 March 2017.

The provision does not apply to loans granted to a trust for the purchase of the lender’s or the spouse’s primary residence.

The official interest rate is linked to the repurchase rate plus 1% and is published on the SARS website. The most recent changes are as follows:

DATE FROMDATE TORATE
01.04.201631.07.20178.00%
01.08.201731.03.20187.75%
01.04.201830.11.20187.50%
01.12.201831.07.20197.75%
01.08.201931.01.20207.50%
01.02.2020Until change in Repo rate7.75%

Non-Residents:

Loans by non-residents are not subject to the effect of donations tax as a result of S7C since non-residents are exempt from donations tax. Loans from non-residents may nonetheless be subject to transfer pricing provisions.

Distributions to non-residents are fully taxable in the trust at the trust’s applicable tax rate.

COMPANIES

TAX RATES

(Unless otherwise stated, financial years ending on any date between 1 April 2020 and 31 March 2021)

Basic rate (other than entities specified below)28%
Companies in certain special economic zones15%

Small Business Corporations (annual turnover of R20 million or less):

Financial years ending on any date between 1 April 2020 and 31 March 2021

TAXABLE INCOMERATE OF TAX
R0 – R83 1000% of taxable income
R83 101 – R365 0007% of taxable income above R83 100
R365 001 – R550 000R19 733 + 21% of taxable income above R365 000
R550 001 and aboveR58 583 + 28% of taxable income above R550 000

Financial years ending on any date between 1 April 2019 and 31 March 2020

TAXABLE INCOMERATE OF TAX
R0 – R79 0000% of taxable income
R79 001 – R365 0007% of taxable income above R79 000
R365 001 – R550 000R20 020 + 21% of taxable income above R365 000
R550 001 and aboveR58 870 + 28% of taxable income above R550 000

Micro-business (elective presumptive turnover tax for qualifying annual turnover of R1 million or less)*:

Years of assessment commencing on 1 March 2020 or ending on 28 February 2021.

TAXABLE TURNOVERRATE OF TAX
0 – R335 0000% of taxable turnover
R335 001 – R500 0001% of the amount above R335 000
R500 001 – R750 000R1 650 + 2% of the amount above R500 000
R750 001 and aboveR6 650 + 3% of the amount above R750 000

* Qualifying micro-businesses are entitled to pay turnover tax, VAT and employees’ tax twice a year.

DONATIONS

In the case of a taxpayer who is not an individual, exempt donations are limited to casual gifts not exceeding R10 000 per annum in total.

Donations between companies forming part of the same group of companies and donations to certain public benefit organisations are exempt from donations tax.

VAT

The VAT rate remained unchanged at 15%

Compulsory Registration

It is mandatory for a business to register for VAT if the total value of taxable supplies made in any consecutive twelve month period exceeded or is likely to exceed R1 million. The business must complete a VAT 101 – Application for Registration form and submit it to the local SARS branch within 21 days from date of exceeding R1 million.

Voluntary Registration

A business may also choose to register voluntarily for VAT if the value of taxable supplies made or to be made is less than R1 million, but has exceeded R50 000 in the past period of 12 months.

DIVIDENDS

Dividends are subject to dividends tax which is withheld from the gross dividend declared, before being paid to the beneficial owners. The entity declaring the dividend is liable for withholding the tax and paying it to SARS.

The following rates are applicable:

BENEFICIAL OWNERDIVIDEND WITHHOLDING TAX RATE
Resident individuals20%
Resident companies0%
Non-resident individuals and companiesRefer to tax rates per South African
DTA Agreements – available on the
SARS website

FRINGE BENEFITS

Right of Use of Motor Vehicle

As from 1 March 2015, for vehicles acquired or financed, the determined value for the fringe benefit is the retail market value (previously cost) including VAT but excluding finance charges and interest. The determined value of a motor vehicle held under a lease is the cash value.

The employee will be taxed on 3,5% (3,25% if subject to a maintenance plan) per month of the determined value of the motor vehicle less any consideration paid by the employee towards the cost of the vehicle.

Medical Aid Contributions

As from 1 March 2010, the full contribution by an employer is a fringe benefit. If the employer makes a lump sum payment for all employees, the fringe benefit is determined in accordance with a formula, which will have the effect of apportionment amongst all employees concerned. The fringe benefit has no value where the contributions are made for an employee who retired due to superannuation or ill health, or for dependants of a deceased employee.

Low Interest or Interest-Free Loans

The fringe benefit is the difference between the interest rate charged by the employer and the official interest rate applied to the loan amount.

The fringe benefit has no value where the loan is less than R3 000 or where a loan is made to an employee to further his/her own studies.

Employers should consider the requirements to register as a credit provider in terms of the National Credit Act when providing interest bearing loans to employees.

Retirement funding contributions

Retirement funding contributions paid by the employer as part of remuneration is included in taxable income as a fringe benefit.

Employer pays for tax and related services

An employee should be taxed on a fringe benefit whenever an employer pays tax and related services rendered to that employee.

Residential Accommodation

The value of the fringe benefit to be taxed is the rental value less any consideration paid by the employee. As from 1 March 2015, where the accommodation is not owned by the employer but by an unconnected person, the rental value is the lower of the formula value or the arm’s length rental. As from 1 March 2008, no value is placed on the benefit where:

  • the supply of any accommodation to an employee away from his usual place of residence in South Africa for the performance of his duties.
  • the supply of any accommodation in South Africa to an employee away from his usual place of residence outside South Africa for a two year period, subject to a limit of R25 000 per month. This concession does not apply if the employee was present in South Africa for more than 90 days in the tax year prior to the date of arrival for the purpose of his duties.

CAPITAL GAINS TAX (CGT)

INCLUSION RATES*
Companies80%

* No capital gains exclusions apply to companies.

SECURITIES TRANSFER TAX

Securities transfer tax (STT) is payable upon the transfer of unlisted shares. This includes the buying back, redemption or cancellation of shares. STT is levied at 0.25% of the value of the shares transferred and is due within two months after the end of the month in which the shares were transferred.

OTHER

PROVISIONAL TAX

A provisional taxpayer is any person who earns income by way of remuneration from an unregistered employer, or income that is not remuneration, or an allowance or advance payable by the person’s principal. An individual is not required to pay provisional tax if he or she does not carry on any business, and the individual’s taxable income:

  • Will not exceed the tax threshold for the tax year; or
  • From interest, dividends, foreign dividends, rental from the letting of fixed property, and remuneration from an unregistered employer will be R30 000 or less for the tax year.

Provisional tax returns showing an estimation of total taxable income for the year of assessment are required from provisional taxpayers.

Deceased estates are not provisional taxpayers.

ESTATE DUTY

VALUE OF ESTATERATE
R0 to R30 000 00020% of the dutiable amount of a deceased estate
Exceeding R30 000 00025% of the dutiable amount of a deceased estate

Estate duty is levied on the dutiable amount of a deceased estate (property of residents and SA property of non-residents). Deductions include: a standard abatement of R3.5 million per estate (R7 million for a married couple) and certain other deductions, the most important of which is the deduction for property accruing to a surviving spouse.

TRANSFER DUTY

Paid on acquisition of immovable property where the transaction is not subject to VAT. Transfer duty is also payable on the acquisition of residential property through an interest in a company or trust. The rates of duty are as follows:

Years of assessment commencing on 1 March 2020 or ending on 28 February 2021.

VALUE OF PROPERTYRATE
R0 to R1 000 0000% of property value
R1 000 001 to R1 375 0003% of property value above R1 000 000
R1 375 001 to R1 925 000R11 250 + 6% of property value above R1 375 000
R1 925 001 to R2 475 000R44 250 + 8% of property value above R1 925 000
R2 475 001 to R11 000 000R88 250 + 11% of property value above R2 475 000
R11 000 001 and aboveR1 026 000 + 13% of the value exceeding R11 000 000

Years of assessment commencing on 1 March 2019 or ending on 29 February 2020.

VALUE OF PROPERTYRATE
R0 to R900 0000% of property value
R900 001 to R1 250 0003% of property value above R900 000
R1 250 001 to R1 750 000R10 500 + 6% of property value above R1 250 000
R1 750 001 to R2 250 000R40 500 + 8% of property value above R1 750 000
R2 250 001 to R10 000 000R80 500 + 11% of property value above R2 250 000
R10 000 001 and aboveR933 000 + 13% of the value exceeding R10 000 000

WITHHOLDING TAXES

OTHER PAYMENTS TO NON-RESIDENTS
Royalties15%
Interest15%
Sportsmen and entertainers who perform in SA15%
Fixed property acquired in SA from a seller that is a non-resident:
If the non-resident is a natural person7.5%
If the non-resident is a company10%
If the non-resident is a trust15%