SARS Income tax 2013/2014
Taxes and the way residents are taxed changes continuously depending on the economics of the day. Most new changes are announced during the budget speech each year.
At Tax Relax we are up to date with the latest changes when they happen ensuring your taxes are done correctly and to your benefit.
Tax is based on a residence system which means all residents, irrespective of where their income comes from, must pay tax. Some exemptions do apply for certain types of income and credit is given for paying foreign taxes. Non South African residents are taxed only on their South African income. A resident for tax purposes is someone who lives and works in South Africa for more than 183 days a year.
Income tax is levied on all income and profits received by a taxpayer, this includes individuals and companies. South African residents are taxed on their world-wide income. The tax year begins on 1 March and ends on 28/9 February. Tax is calculated based on earnings. Employee’s tax is due at the end of the tax year but a system has been devised whereby tax is payable in portions: SITE, PAYE and provisional tax.
All first-time tax payers, which refers to any new employee earning an income, irrespective of their salary, need to register with the South African Revenue Service (SARS) as a tax payer.