Value-added Tax (VAT)
22 February 2023 – No changes from last year:
VAT is levied at the standard rate of 15% 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 subject to a zero rate, or are exempt from VAT.
Donations Tax
22 February 2023 – No changes from last year:
Donations tax is levied at a flat rate of 20% on the cumulative value of property donated since 1 March 2018 not exceeding R30 million, and at a rate of 25% on the cumulative value since 1 March 2018 exceeding R30 million.
The first R100 000 of property donated in each year by a natural person is exempt from donations tax.
In the case of a taxpayer who is not a natural person, the exempt donations are limited to casual gifts not exceeding R10 000 per annum in total. Dispositions between spouses, South African group companies and donations to certain public benefit organisations, are exempt from donations tax.
See the Donations Tax webpage for more information.
Estate Duty
22 February 2023 – No changes from last year:
Estate duty is levied on property of residents and South African property of non-residents less allowable deductions. The duty is levied on the dutiable value of an estate at a rate of 20% on the first R30 million and at a rate of 25% above R30 million. A basic deduction of R3.5 million is allowed in the determination of an estate’s liability for estate duty, as well as deductions for liabilities, bequests to public benefit organisations and property accruing to surviving spouses. See the Estate Duty webpage for more information.
Foreign entertainers and sportspersons
22 February 2023 – No changes from last year:
A final tax at the rate of 15% is charged on gross amounts payable to non-residents for activities exercised by them in South Africa as entertainers or sportspersons.
Royalties
22 February 2023 – No changes from last year:
A final withholding tax at a rate of 15% is charged on gross amount of royalties from a South African source payable to non-residents.
Securities Transfer Tax
22 February 2023 – No changes from last year:
The tax is charged at a rate of 0.25% on the transfer of listed or unlisted securities. Securities consist of shares in companies or member’s interests in close corporations.
Skills Development Levy
22 February 2023 – No changes from last year:
A skills development levy is payable by employers at a rate of 1% of the total remuneration paid to employees. Employers paying an annual remuneration of less than R500 000 are exempt from paying skills development levies.
Unemployment Insurance Contributions
22 February 2023 – No changes from last year:
Unemployment insurance contributions are payable monthly by employers, on the basis of a contribution of 1% by employers and 1% by employees, based on the employees’ remuneration below a certain amount.
Employers not registered for PAYE or SDL must pay the contributions to the Unemployment Insurance Commissioner.
Tax on International Air Travel
22 February 2023 – No changes from last year:
| Tax year | International flights (excluding BLNS) | BLNS countries |
|---|---|---|
| 2024 | R190 per passenger | R100 per passenger |
| 2023 | R190 per passenger | R100 per passenger |
| 2022 | R190 per passenger | R100 per passenger |
| 2021 | R190 per passenger | R100 per passenger |
| 2020 | R190 per passenger | R100 per passenger |
| 2019 | R190 per passenger | R100 per passenger |
| 2018 | R190 per passenger | R100 per passenger |
| 2017 | R190 per passenger | R100 per passenger |
| 2016 | R190 per passenger | R100 per passenger |
| 2015 | R190 per passenger | R100 per passenger |
Top Tip: BLNS means Botswana, Lesotho, Namibia and eSwatini.
