South African Income Tax Rates from 1981 to 2017

More recent rates are found on the current rates page. A number of papers link to this page in making the case that the corporate income tax rate should be increased to the levels that it was at before 1994. Some extracts from the First Interim Report of the Katz Commission, with updates for the situation in 2023, may be relevant when considering this case

Individuals

Putting this table together involved delving into a history of multiple rebates, capped variable rebates with deemed minimums, multiple tax tables, discrimination on the basis of race, and discrimination on the basis of marital status. Discrimination on the basis of race was repealed with effect from 1984/5 but discrimination on the basis of marital status lived on for just over another decade. It reached the stage that separate tax tables were used depending on whether you were a "married person", "person not a married person" or a "married woman". Wives were expected to include their taxable income in their husbands' tax returns. Unless a polygamous marriage was involved, in which case only the longest married wife's income was included. A widow or widower was still a married person but a divorced person was, usually, not. As the 1984-5 Supplement to Silke on South African Income Tax put it; "One could say, in fact that a married woman is 'married' but not a 'married person' unless she is divorced (but the true position is even more complicated)!"

Discrimination on the basis of marital status conflicted with the Bill of Rights of the Interim Constitution and was repealed as soon as practical after its promulgation. This change was eased by the work that already had been put into the separation of husband and wife for income tax purposes from 1990 onward. Individuals are now taxed on their own income using a single tax table. Rules exist to allocate income in spousal relationships in community of property. Marriages, customary marriages, religious marriages, and permanent same-sex or heterosexual unions give rise to a spousal relationship between the participants for tax purposes. The last two categories of spousal relationship are considered to be out of community of property unless proven otherwise.

In order to keep the comparisons manageable, the tax tables and rebates applicable to a single person with no dependants have been used for years before 1995/6.

Fiscal
Year
First Tax
Threshold
Second Tax
Threshold
Third Tax
Threshold
Minimum RateMinimum Rate
Bracket
Maximum RateMaximum Rate
Threshold
BracketsLoan Levy/
Surcharge
Notes
1980/11 5003 000-9.6%6 00050%28 00017-1,2,3
1981/21 5003 0004 0009.6%6 00050%28 00017-1,2,3,4
1982/32 6503 8504 65012%7 00050%28 000165%1,3,4
1983/42 6503 8504 65012%7 00050%28 00016-1,3,4
1984/53 3754 3755 87514.4%8 00050%28 00015-1,3,4
1985/64 0314 7817 15616%10 00050%42 000217%3,5,6
1986/74 2324 9827 35716%10 00050%42 00021-5%3,5,7
1987/84 5005 3007 83315%10 00045%42 00018-3,5
1988/95 3576 2148 92914%10 00045%54 00019-3,5
1989/19906 0716 92814 78314%10 00045%54 00019-3,5
1990/110 28510 85718 88915%4 00044%56 00014-5,8,9
1991/210 35710 92919 50014%5 00043%56 00012-5,8
1992/310 71411 28521 42917%5 00043%56 0009-5,8
1993/410 71411 28521 42917%5 00043%56 0009-5,8
1994/510 71421 429-17%5 00043%56 00093.33%10,11
1995/614 60526 786-17%5 00045%80 000101.67%10,11,12
1996/715 58027 905-17%15 00045%100 0008-11,12
1997/816 92130 050-19%30 00045%100 0007-11,12
1998/918 50031 950-19%31 00045%120 0006-11,12
1999/200019 52633 717-19%33 00045%120 0006-11,12
2000/121 11136 538-18%35 00042%200 0006-11,12
2001/223 00039 154-18%38 00042%215 0006-11,12
2002/327 00042 640-18%40 00040%240 0006-11,12
2003/430 00047 222-18%70 00040%255 0006-11,12
2004/532 22250 000-18%74 00040%270 0006-11,12
2005/635 00060 000-18%80 00040%300 0006-11,12
2006/740 00065 000-18%100 00040%400 0006-11,12
2007/843 00069 000-18%112 50040%450 0006-11,12
2008/946 00074 000-18%122 00040%490 0006-11,12
2009/1054 20084 200-18%132 00040%525 0006-11,12
2010/1157 00088 528-18%140 00040%552 0006-11,12
2011/1259 75093 150104 26118%150 00040%580 0006-11,12,13
2012/1363 55699 056110 88918%160 00040%617 0006-11,12,13
2013/1467 111104 611117 11118%165 60040%638 6006-11,12,13
2014/1570 700110 200123 35018%174 55040%673 1006-11,12,13
2015/1673 650114 800128 50018%181 90141%701 3006-11,12,13,14
2016/1775 000116 150129 85018%188 00041%701 3006-11,12,13
Notes
  1. Single persons' rates were calculated by using the married persons' tax table for income up to R28 000, deducting the applicable rebates, and adding a 20% surcharge. Taxable income over R28 000 was taxed at a flat 50%.
  2. The married persons' first threshold was R2 500, second threshold R4 000, the minimum rate of 8% applied up to a taxable income of R6 000, the maximum marginal rate of 50% was reached at a taxable income of R40 000, and there were 24 tax brackets.
  3. The second threshold applied to those 60 years of age and older.
  4. The third threshold applied to those 70 years of age and older.
  5. The third threshold applied to those 65 years of age and older.
  6. The surcharge was levied on so much of the net amount of tax, after deduction of all rebates, as exceeded R750.
  7. The discount was based on the net amount of tax after deduction of all rebates.
  8. The qualifying age for the second threshold was increased to 61 years of age in 1990/1 and increased by one year in each year thereafter until it reached 65.
  9. Dividends exempted from income tax. See repeal of UPT for companies below.
  10. A transitional levy was levied on taxable income over R50 000, subject to certain exemptions.
  11. The second threshold applied to those 65 years of age and older.
  12. Single tax table for all individuals.
  13. The third threshold applied to those 75 years of age and older.
  14. The tax rate for all tax brackets, except the lowest, was increased by 1%.

Individuals - Medical Tax Credit

MemberFirst DependantSecond Dependant
2012/13R230R230R154
2013/14R242R242R162
2014/15R257R257R172
2015/16R270R270R181
2016/17R286R286R192

The medical scheme tax credit took effect for taxpayers from 2012/13 for taxpayers younger than 65 and from 2014/15 for taxpayers 65 and older.

Individuals - Interest and Dividends Exemption

Fiscal
Year
< 6565 +Foreign
Permitted
1989/1990R1 000R1 000N/A
1990/1R2 000R2 000N/A
...R2 000R2 000N/A
2000/1R3 000R4 000All
2001/2R4 000R5 000All
2002/3R6 000R10 000R1 000
2003/4R10 000R15 000R1 000
2004/5R11 000R16 000R1 000
2005/6R15 000R22 000R2 000
2006/7R16 500R24 500R2 500
2007/8R18 000R26 000R3 000
2008/9R19 000R27 500R3 200
2009/10R21 000R30 000R3 500
2010/11R22 300R32 000R3 700
2011/12R22 800R33 000R3 700
2012/13R22 800R33 000N/A
2013/14R22 800R34 500N/A
...R22 800R34 500N/A

Dividends received from domestic companies were generally exempt from income tax. A notable exception was a dividend from a "fixed property company", since such a company may deduct a dividend declared as an expense for tax purposes. Dividends received from foreign companies were generally taxable. A notable exception was a dividend from a Johannesburg Stock Exchange listed company.

A participation exemption for dividends from a holding of more than 25% in the equity share capital of a foreign company came into effect for years of assessment commencing on or after 1 June 2004. This would be the 2005/6 year for individuals. The participation exemption was extended to a holding of at least 20% of the total equity share capital with voting rights of at least 20% for dividends received or accrued on or after 8 November 2005. It was extended to a holding of at least 10% from 1 March 2012.

From 1 April 2012 dividends received by individuals from domestic companies were subject to a final withholding tax of 15% but were exempt from normal tax. Only 37.5% (36.6% from 1 March 2015) of the dividends received from foreign companies were included in individuals' taxable income, so the maximum effective rate on these dividends was 15%.

Tax free savings accounts (subject to annual and lifetime contribution limits) were introduced in 2015/16. As a result the interest exemptions above will no longer be increased.

Individuals - "Blacks"

"Blacks" were taxed in terms of the Taxation of Blacks Act, 1969, until 1983/4. The income of spouses was not added together, there was a single tax table, and there were no rebates.

Fiscal
Year
Minimum RateMinimum Rate
Bracket
Maximum RateMaximum Rate
Threshold
Brackets
1980/10%1 80048%28 02029
1981/20%1 80048%28 02029
1982/30%1 80048%28 02029
1983/40%1 80048%28 02029

Capital Gains Tax - Inclusion

 2001/2 - 2013/142014/15 - 2015/162016/17 on
Individuals & special trusts25%33.3%40%
Companies & other trusts50%66.6%80%

Capital gains tax was introduced with effect from 1 October 2001 and applies to the disposal of an asset on or after that date. Only a percentage of a person's net capital gains for a year is included in taxable income and taxed at normal rates.

Corporate - Normal Tax & Surcharges

Fiscal
Year
Normal
Tax
SurchargeEffective
Rate
Notes
1980/140%5%42%-
1981/240%5%42%-
1982/342%10%46.2%-
1983/442%10%46.2%-
1984/550%-50%-
1985/650%-50%-
1986/750%-50%-
1987/850%-50%1
1988/950%-50%-
1989/199050%-50%-
1990/150%-50%-
1991/248%-48%-
1992/348%-48%-
1993/440%-40%-
1994/535%5%Variable2
1995/635%-35%-
1996/735%-35%-
1997/835%-35%-
1998/935%-35%-
1999/200030%-30%-
2000/130%-30%3
2001/230%-30%3
2002/330%-30%4
2003/430%-30%4
2004/530%-30%4
2005/629%-29%5
2006/729%-29%6
2007/829%-29%6
2008/928%-28%7
2009/1028%-28%7,8
2010/1128%-28%7,8
2011/1228%-28%7,8
2012/1328%-28%9,10
2013/1428%-28%10,11
2014/1528%-28%10,11
2015/1628%-28%11,12
2016/1728%-28%11,12
Notes
  1. A minimum tax on companies was levied and could be offset against subsequent provisional tax or normal tax. If not utilised it was was refundable on liquidation or 1 October 1991, whichever came first. MTC = 25% x (Dividends distributed during the year - SA normal tax for the year - foreign taxes on income, profits or gains from foreign sources - dividends derived during the year from all sources). There were a number of exemptions, including one for companies which had distributed dividends of less than R250 000.
  2. A transitional levy of 5% was levied on taxable income over R50 000, before taking any assessed loss from the prior year into account.
  3. A small business scale with a reduced rate of 15% for taxable incomes of up to R100 000 was in force. Turnover and shareholding conditions apply. A personal service company, as defined, was taxed at 35%.
  4. A small business scale with a reduced rate of 15% for taxable income of up to R150 000 was in force. Turnover and shareholding conditions applied. A personal service company, as defined, was taxed at 35%.
  5. A small business scale with reduced rates of 0% for taxable income up to R35 000 and 10% up to R250 000 was in force. Turnover and shareholding conditions applied. A personal service company, as defined, was taxed at 34%.
  6. A small business scale with reduced rates of 0% for taxable income up to individuals' <65 threshold and 10% up to R300 000 was in force. Turnover and shareholding conditions applied. A personal service company, as defined, was taxed at 34%.
  7. A small business scale with reduced rates of 0% for taxable income up to individuals' <65 threshold and 10% up to R300 000 was in force. Turnover and shareholding conditions applied. A personal service company, as defined, was taxed at 33%.
  8. A micro business turnover tax with rates ranging from 0% for turnover up to R100 000 to 7% for turnover exceeding R750 000 was in force. Turnover and shareholding conditions applied.
  9. A small business scale with reduced rates of 0% for taxable income up to individuals' <65 threshold and 7% up to R350 000 was in force. Turnover and shareholding conditions applied. The concept of a personal service company fell away with the repeal of the secondary tax on companies and the introduction of the final withholding tax on dividends in its place.
  10. A micro business turnover tax with rates ranging from 0% for turnover up to R150 000 to 6% for turnover exceeding R750 000 was in force. Turnover and shareholding conditions applied.
  11. A small business scale with reduced rates of 0% for taxable income up to individuals' <65 threshold, 7% up to R365 000 and 21% up to R550 000 was in force. Turnover and shareholding conditions applied.
  12. A micro business turnover tax with rates ranging from 0% for turnover up to R335 000 to 3% for turnover exceeding R750 000 was in force. Turnover and shareholding conditions applied.

Corporate - Undistributed Profits Tax

FromToRate
1980/19811989/199033.33%

Corporate - Secondary Tax on Companies

Dividend Declared
FromToRate
17/03/199321/06/199415%
22/06/199413/03/199625%
14/03/199630/09/200712.5%
01/10/200731/03/201210.0%

The STC base was broadened on 1 October 2007 and the rate reduced to 10%. Following the signature and ratification of certain double taxation agreements, STC was replaced by a final withholding tax on dividends on 1 April 2012.



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