Here’s how much tax you will pay this year based on your earnings in South Africa

The South African Revenue Services (SARS) says that taxpayers will be able to file their tax returns from 1 July 2022.

Taxpayers should also be aware of the shortened time frames to submit their returns for the 2023 tax season, beginning 1 March 2022 – to 28 February 2023.

Income tax return filing dates:

  • 1 July to 24 October 2022 – This is the period for taxpayers who file online. Taxpayers who cannot file online can do so at a SARS branch by appointment only.
  • 1 July to 23 January 2023 – This is the period for Provisional taxpayers including Trusts may file via eFiling or SARS MobiApp.

“With Individual Filing Season starting in July 2022, we have made it easier and convenient to be tax compliant with SARS auto-assessment,” the revenue service said.

If you fail to submit a tax return, SARS can charge an administrative penalty which can range from R250 to R16,000 per month or R3,000 to R192,000 per year.

“It does appear though, at the moment, that SARS is issuing smaller penalties ranging between R500 and R2000,” said Momentum, “but we never know when this could change”.

“Many taxpayers are receiving penalties for old unfiled tax returns even if they were not required to submit tax returns based on the two reasons explained at the end of this blog. Taxpayers, after filing their 2021 return are suddenly being issued penalty notices for outstanding returns for previous years,” said Momentum.

#​Taxable income (R)​Rates of tax (R)
Bracket 11 – R226 00018% of taxable income
Bracket 2R226 001 – R353 100R40 680 + 26% of taxable income above R226 000
Bracket 3R353 101 – R488 700R73 726 + 31% of taxable income above R353 100
Bracket 4R488 701– R641 400R115 762 + 36% of taxable income above R488 700
Bracket 5R641 401 – R817 600R170 734 + 39% of taxable income above R641 400
Bracket 6R817 601 – R1 731 600R239 452 + 41% of taxable income above R817 600
Bracket 7R1 731 601 and aboveR614 192 + 45% of taxable income above R1 731 600

Justonelap data shows that the effective tax rate of an individual is not the same as the rate of tax per tax bracket. This difference is shown in the following example:

Taxable IncomeRate of TaxExample: Taxable incomeTax over threshold​Rates of tax (R)Total tax payableEffective tax rate
R1 – R226 00018% of taxable incomeR214 700n/an/aR38 64618%
R226 001 – R353 10040 680 + 26% of taxable income above R226 000R335 445R109 445R28 456R69 13620.6%
R353 101 – R488 700R73 726 + 31% of taxable income above R353 100R464 265R111 165R34 461R108 18723.3%
R488701 – R641 400R115 762 + 36% of taxable income above R488 700R609 330R120 630R43 427R159 18926.1%
R641 401 – R817 600R170 734 + 39% of taxable income above R641 400R750 000R108 600R42 354R213 08828.4%
R817 601 – R1 731 600R239 452 + 41% of taxable income above R817 600R1645 020R827 420R339 242R578 69435.2%
R1 731 601 and aboveR614 192 + 45% of taxable income above R1 731 600R1950 000R218 400R98 280R712 47236.5%

Article: Business Tech

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