{"id":458708,"date":"2021-01-04T10:11:18","date_gmt":"2021-01-04T08:11:18","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=458708"},"modified":"2021-01-04T10:14:20","modified_gmt":"2021-01-04T08:14:20","slug":"this-is-who-pays-taxes-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/458708\/this-is-who-pays-taxes-in-south-africa\/","title":{"rendered":"This is who pays taxes in South Africa"},"content":{"rendered":"<p>National Treasury and the South African Revenue Service (SARS) have published the annual Tax Statistics for 2020.<\/p>\n<p>The 2020 edition provides an overview of tax revenue collections and tax return information for the 2016 to 2019 tax years, as well as the 2015\/16 to 2019\/2020 fiscal years.<\/p>\n<p>&#8220;The 2019 technical recession led to slow growth in revenue collections, which culminated in a downward revision of revenue estimates,&#8221;\u00a0 SARS said.<\/p>\n<p>&#8220;Whilst revenues generated from the tax system move\u00a0in tandem with the economy, on average, the growth in tax revenues has been higher than economic growth.&#8221;<\/p>\n<p>Tax revenue collected amounted to R1 355.8 billion, growing year-on-year by R68.1 billion (5.3%), mainly supported by Personal Income Tax (PIT) which grew by R35.3 billion (7.2%).<\/p>\n<p><strong>Personal Income Tax<\/strong><\/p>\n<p>The geographic and demographic analysis of the assessments of the taxpayers who had been assessed as at the end of October 2020 showed some interesting results:<\/p>\n<ul>\n<li>1,776,301 (40.9%) of assessed taxpayers were registered in Gauteng;<\/li>\n<\/ul>\n<ul>\n<li>580,464 of assessed taxpayers lived in the Johannesburg Metro and were taxed on an average taxable income of R512,785;<\/li>\n<\/ul>\n<ul>\n<li>1,171,410 (27.0%) of assessed taxpayers were aged between 35 to 44 years;<\/li>\n<\/ul>\n<ul>\n<li>2,352,902 (54.2%) of assessed taxpayers were male and 1,985,021 (45.8%) were female;<\/li>\n<\/ul>\n<ul>\n<li>The assessed taxpayers had aggregate taxable income of R1.6 trillion and a tax liability of R360 billion. Their average tax rate was 22.5% compared to 21.6% in the previous tax year;<\/li>\n<\/ul>\n<ul>\n<li>Income from salaries, wages and other remuneration, as well as pension, overtime and annuities, accounted for 77.6% of total taxable income.<\/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\/2021\/01\/Income-tax.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-458726\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Income-tax.png\" alt=\"\" width=\"900\" height=\"655\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Income-tax.png 772w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Income-tax-300x218.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Income-tax-768x559.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><\/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\/2021\/01\/Income-tax-2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-458730\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Income-tax-2.png\" alt=\"\" width=\"900\" height=\"505\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Income-tax-2.png 775w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Income-tax-2-300x168.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Income-tax-2-768x431.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><\/a><\/p>\n<p>This graph shows how the 2.9 million taxpayers\u2019 taxable income shifted across the tax brackets due to increases in taxable income and other market factors:<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Tax-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-458722\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Tax-1.png\" alt=\"\" width=\"900\" height=\"654\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Tax-1.png 796w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Tax-1-300x218.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/01\/Tax-1-768x558.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><\/a><\/p>\n<p><strong>Other taxes<\/strong><\/p>\n<p>Statistics regarding corporate tax reveal that out of the 780,480 companies assessed as at the end of July 2020 for tax year 2018, 25.2% had positive taxable income.<\/p>\n<p>Furthermore, 46.6% had taxable income equal to zero and the remaining 28.2% reported an assessed loss.<\/p>\n<p>In 2019\/20, 78.5% of active VAT vendors were companies or close corporations. They contributed 92.6% to Domestic VAT payments and accounted for 90.9% of VAT refunds.<\/p>\n<p>Although individuals (sole proprietors) comprised 16.1% of VAT vendors, they contributed 2.7% of Domestic VAT payments and received 1.2% of VAT refunds.<\/p>\n<p>Import VAT and Customs Duties accounted for 13.3% and 4.1% of the year\u2019s Total Tax Revenue respectively; resulting in a 17.4% aggregate which was slightly below the 17.6% average over the preceding five fiscal years.<\/p>\n<p>In 2019\/20, Capital Gains Tax (CGT) of R14.1 billion was raised of which R6.4 billion was attributable to individuals and trusts and R7.7 billion to companies.<\/p>\n<p>This reflects a significant decline of R3.8 billion (21.3%) against the R17.9 billion raised in 2018\/19. An aggregate of R156.7 billion has been raised since the introduction of CGT in October 2001, with R72.5 billion from individuals and trusts and R84.2 billion from companies.<\/p>\n<hr \/>\n<p><strong>Read:<a href=\"https:\/\/businesstech.co.za\/news\/finance\/457072\/5-things-south-african-taxpayers-should-know-when-sars-owes-you-a-refund\/\" target=\"_blank\" rel=\"noopener noreferrer\"> 5 things South African taxpayers should know when SARS owes you a refund<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Treasury and the South African Revenue Service (SARS) have published the annual Tax Statistics for 2020.<\/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-458708","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\/458708","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=458708"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/458708\/revisions"}],"predecessor-version":[{"id":458762,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/458708\/revisions\/458762"}],"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=458708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=458708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=458708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}