On 30 August 2021, the South African Revenue Service (SARS) published 2021 Tax Guide or Budget 2021 Tax Guide, which provides a synopsis of the most important tax, duty and levy related information for 2021/22. The guide includes the Tax Administration Laws Amendment Act 24 of 2020, the Taxation Laws Amendment Act 23 of 2020, and the Rates and Monetary Amounts and Amendment of Revenue Laws Act 22 of 2020. Some of the key points are given below:
Corporate tax
The corporate income tax rate is 28% of taxable income applies for companies whose years of assessment ending on any date between 1 April 2021 and 31 March 2022. Residents are taxed on their worldwide income, subject to certain exclusions. The general principle is that foreign taxes on foreign sourced income are allowed as a credit against South African tax payable. This is applicable to individuals, companies, close corporations, trusts and estates.
Small Business Corporations
Companies those have assessment years ending on any date between 1 April 2021 and 31 March 2022 required to pay the following tax according to their taxable income:
| Taxable Turnover | Tax rate |
| 1 – 87 300 | 0% of taxable income |
| 87 301 – 365 000 | 7% of taxable income above 87 300 |
| 365 001 – 550 000 | 19 439 + 21% of taxable income above 365 000 |
| 550 001 and above | 58 289 + 28% of the amount above 550 000 |
Micro business
| Taxable Turnover | Tax rate |
| 1 – 335 000 | 0% of taxable income |
| 335 001 – 500 000 | 1% of taxable turnover above 335 000 |
| 500 001 – 750 000 | 1 650 + 2% of taxable turnover above 500 000 |
| 750 001 and above | 6 650 + 3% of taxable turnover above 750 000 |
WHT rate on interest, royalties and immovable property
A 15% tax is imposed on the gross amount of royalties and interest from a South African source payable to nonresidents. Interest is exempt if payable by any sphere of the South African government, a bank, or if the debt is listed on a recognized exchange. A final 15% tax is imposed on gross amounts payable to non-residents, for activities exercised by them in South Africa as entertainers or sportspersons. A provisional tax is withheld on behalf of non-resident sellers of immovable property in South Africa, to be set off against the normal tax liability of the non-residents. The tax to be withheld from payments to the non-residents is at a rate of 7.5% for a non-resident individual, 10% for a non-resident company, and 15% for a non-resident trust that is selling the immovable property.
A 20% dividends tax is paid by resident companies and non-resident companies in respect of shares listed on the JSE. Dividends are tax exempt if the beneficial owner of the dividend is a South African company, retirement fund or other exempt person.
VAT
VAT is levied at the 15% standard rate on the supply of goods and services by registered vendors. A vendor making taxable supplies of more than R1 million per annum must register for VAT. A vendor making taxable supplies of more than R50 000, but not more than R1 million per annum, may apply for voluntary registration. Certain supplies are exempt from VAT.
Capital gains tax
Capital gains on the disposal of assets are included in taxable income.
Individual tax
Individuals and special trusts are subject to following tax rate from 1 March 2021 to 28 February 2022:
| Taxable Turnover | Tax rate |
| 1 – 216 200 | 18% of taxable income |
| 216 201 – 337 800 | 38 916 + 26% of taxable income above 216 200 |
| 337 801 – 467 500 | 70 532 + 31% of taxable income above 337 800 |
| 467 501 – 613 600 | 110 739 + 36% of taxable income above 467 500 |
| 613 601 – 782 200 | 163 335 + 39% of taxable income above 613 600 |
| 782 201 – 1 656 600 | 229 089 + 41% of taxable income above 782 200 |
| 1 656 601 and above | 587 593 + 45% of taxable income above 1 656 600 |
