{"id":386931,"date":"2020-04-02T10:39:25","date_gmt":"2020-04-02T08:39:25","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=386931"},"modified":"2020-04-02T10:39:25","modified_gmt":"2020-04-02T08:39:25","slug":"this-is-who-is-paying-south-africas-taxes","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/386931\/this-is-who-is-paying-south-africas-taxes\/","title":{"rendered":"This is who is paying South Africa\u2019s taxes"},"content":{"rendered":"<p>The South African Revenue Services has announced its preliminary revenue outcome for 2019\/2020, with the group once again announcing a deficit.<\/p>\n<p>In total, SARS collected a gross amount of R1.6 trillion, which was offset by refunds of R291.9 billion, resulting in net collections of R1.35 trillion.<\/p>\n<p>This represents growth of R68.2 billion (5.3%) against the 2018\/19 financial year, the revenue collector said.<\/p>\n<p>While these are preliminary results which will be subject to detailed financial reconciliation and a final audit, SARS noted that there has been growing shift towards Personal Income Tax (PIT) as a source of revenue.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Revenue-tables.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-386955 aligncenter\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Revenue-tables.jpg\" alt=\"\" width=\"1214\" height=\"509\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Revenue-tables.jpg 1214w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Revenue-tables-300x126.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Revenue-tables-1024x429.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Revenue-tables-768x322.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Revenue-tables-1200x503.jpg 1200w\" sizes=\"auto, (max-width: 1214px) 100vw, 1214px\" \/><\/a><\/p>\n<p>SARS noted that the main sources of revenue that contributed to the R1.35 trillion collected were:<\/p>\n<ul>\n<li>Personal Income Tax (PIT) contributed R528.9 billion (39%);<\/li>\n<li>Value-Added Tax (VAT) contributing R346.6 billion (25.6%);<\/li>\n<li>Company Income Tax (CIT), contributed R214.7 billion (15.8%);<\/li>\n<li>Customs duties contributed R55.4 billion (4.1%).<\/li>\n<\/ul>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Tax-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-386957 aligncenter\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Tax-2.jpg\" alt=\"\" width=\"1019\" height=\"593\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Tax-2.jpg 1019w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Tax-2-300x175.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/04\/Tax-2-768x447.jpg 768w\" sizes=\"auto, (max-width: 1019px) 100vw, 1019px\" \/><\/a><\/p>\n<p>&#8220;The relative contribution of the main taxes to total tax revenue has shifted with an ever-increasing dependence on personal income tax revenue mainly due to tax policy changes,&#8221; SARS said.<\/p>\n<p>&#8220;PIT remains the largest contributor to total tax revenue and its contribution has increased to 39.0% in 2019\/20 from 38.4% the prior year, mainly due to partial fiscal drag relief.&#8221;<\/p>\n<p>It noted that the\u00a0contribution of VAT and import duties continue to decrease mainly due to weak economic growth with lower consumer and investment spending in the economy.<\/p>\n<p>In addition, the Company Income Tax (CIT) contribution to total revenue has declined over the past years, decreasing to 15.8% in 2019\/20 due to low business profits and weak economic growth.<\/p>\n<hr \/>\n<p><strong>Personal Income Tax<\/strong><\/p>\n<p>South Africa&#8217;s annual tax statistics published at the end of 2019 also provides interesting data on who is paying South Africa&#8217;s Personal Income Tax.<\/p>\n<p>SARS&#8217; data shows that:<\/p>\n<ul>\n<li>2,680,449 (54.5%) of assessed taxpayers were male taxpayers; 2,236,580 (45.5%) were female;<\/li>\n<li>1,342,511 (27.3%) of assessed taxpayers were aged 35 to 44 years; and<\/li>\n<li>1,976,674 (40.2%) of assessed taxpayers were registered in Gauteng, of which 636,460 lived in the Johannesburg Metro and were taxed on an average taxable income of R446,838.<\/li>\n<\/ul>\n<p>This graph shows how income tax collection looks distributed geographically:<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax-map.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-363124\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax-map.jpeg\" alt=\"\" width=\"1085\" height=\"686\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax-map.jpeg 1085w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax-map-300x190.jpeg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax-map-1024x647.jpeg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax-map-768x486.jpeg 768w\" sizes=\"auto, (max-width: 1085px) 100vw, 1085px\" \/><\/a><\/p>\n<p>This graph shows how income tax collection is distributed between males and females:<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/tax-gender.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-363128\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/tax-gender.jpeg\" alt=\"\" width=\"1003\" height=\"537\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/tax-gender.jpeg 1003w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/tax-gender-300x161.jpeg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/tax-gender-768x411.jpeg 768w\" sizes=\"auto, (max-width: 1003px) 100vw, 1003px\" \/><\/a><\/p>\n<p>This graph shows how income tax collection is distributed across broad income groups:<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-363126\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax.jpeg\" alt=\"\" width=\"770\" height=\"550\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax.jpeg 770w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax-300x214.jpeg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/Income-tax-768x549.jpeg 768w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/a><\/p>\n<p>This table shows how income tax collection is distributed across narrow income groups:<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/2018-tax-table.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-363122\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/2018-tax-table.jpeg\" alt=\"\" width=\"691\" height=\"721\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/2018-tax-table.jpeg 691w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/2018-tax-table-288x300.jpeg 288w\" sizes=\"auto, (max-width: 691px) 100vw, 691px\" \/><\/a><\/p>\n<hr \/>\n<p><strong>Read:<a href=\"https:\/\/businesstech.co.za\/news\/finance\/386705\/its-time-to-change-the-way-our-vat-system-works-tax-expert\/\" target=\"_blank\" rel=\"noopener noreferrer\"> It\u2019s time to change the way our VAT system works \u2013 tax expert<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The South African Revenue Services has announced its preliminary revenue outcome for 2019\/2020 with the group once again announcing a deficit.<\/p>\n","protected":false},"author":10,"featured_media":295732,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26,3246],"class_list":["post-386931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline","tag-sars"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/386931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=386931"}],"version-history":[{"count":11,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/386931\/revisions"}],"predecessor-version":[{"id":387051,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/386931\/revisions\/387051"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/295732"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=386931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=386931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=386931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}