On 24 August 2023, the South African Revenue Service (SARS) issued a latest guide for tax rates, duties and levies (Issue 16). The latest version of the SARS guide for tax rates, duties, levies include following:

Corporate tax rates:

According to the South African Revenue Service (SARS), the rate of normal tax on taxable income for companies including close corporations (but excluding companies referred to in 1.2 to 1.6) for the years of assessment ending on 31 March 2016 to 30 March 2022 was 28%. The rate for the year of assessment ending on 31 March 2023 is 27%. Close corporations (CCs) became liable to tax with effect from the 1985 year of assessment. In short, the rate of normal tax on taxable income for companies and CCs in South Africa has been 28% for the past seven years, but it is reduced to 27% for the year of assessment ending on 31 March 2023.

Withholding tax rates :

  • Withholding tax on royalties: The withholding tax increased to 15% on payments to or for the benefit of a foreign person, unless the foreign person is exempt from withholding tax on royalties or a reduced rate applies.
  • Withholding tax rate on interest: With effect from 1 March 2015, a 15% final withholding tax is imposed on interest from a South African source payable to non-residents. Section 50D provides for exemptions from withholding tax on interest. The interest payment may be subject to a reduced rate under section 50E.
  • Withholding tax Rate on foreign entertainers and sportspersons (visiting artists): A 15% final withholding tax is payable effective from 1 August 2006 on gross payments to entertainers and sportspersons who are not residents for their performances in South Africa in respect of any specified activity exercised or to be exercised by that person or any other person who is not a resident. The withholding tax does not apply in respect of any person who is not a resident, if that person is an employee of an employer who is a resident and is physically present in South Africa for a period or periods exceeding 183 full days in aggregate during any 12-month period commencing or ending during the year of assessment in which the specified activity is exercised.
  • Dividends tax rates: the tax rates for dividends varied depending on the type of company and the time period, with higher rates introduced after 22nd February 2017. Headquarter companies were exempt from dividends tax.

Mining company:

  •  Oil and gas companies

(a) Rate of dividends tax in respect of dividends paid by an oil and gas company: The rate of dividends tax that is paid by an oil and gas company on the amount of any dividend derived from oil and gas income must not exceed 0% of the amount of that dividend. Dividends paid out of amounts not derived from an oil and gas company’s oil and gas income will be subject to dividends tax at the rate of 20% if a reduced rate or exemption is not applicable. The rate of 0% also applies to the amount of a foreign dividend paid by a foreign oil and gas company on listed shares provided that the foreign dividend is derived from that company’s oil and gas income.

(b) Rate of withholding tax on interest paid by an oil and gas company: Withholding tax on interest is applicable with effect from 1 January 2015. The rate of withholding tax payable by an oil and gas company may not exceed 0% of the amount of any interest that is paid or becomes due and payable on or after that date by such company for loans applied to fund expenditure contemplated in paragraph 5(2) of the Tenth Schedule. The rate is 15% on other interest paid to non-residents, unless an exemption or a reduced rate applies

  • insurers, small business corporation, public benefit organizations or recreational clubs, micro businesses;
  • Personal income tax of natural persons and special trusts for the 2017 and subsequent years of assessment;
  • The tax percentages applicable to trusts;
  • Value-added tax (VAT);
  • Transfer duty;
  • Security transfer tax (STT);
  • Skills development levy (SDL);
  • Unemployment insurance fund (UIF) contributions;
  • Capital taxes, dividends tax, and ordinary customs duty;
  • Air passenger departure tax;
  • Environmental levy;
  • Fuel taxes;
  • Diamond export levy and export duty and
  • Health promotion levy on sugary beverages.