{"id":740003,"date":"2024-01-04T07:00:00","date_gmt":"2024-01-04T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=740003"},"modified":"2024-01-03T17:06:40","modified_gmt":"2024-01-03T15:06:40","slug":"this-is-who-pays-south-africas-taxes","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/740003\/this-is-who-pays-south-africas-taxes\/","title":{"rendered":"This is who pays South Africa&#8217;s taxes"},"content":{"rendered":"\n<p>The National Treasury and the South African Revenue Service (SARS) has published its 16th annual <a rel=\"noreferrer noopener\" href=\"https:\/\/www.sars.gov.za\/about\/sars-tax-and-customs-system\/tax-statistics\/\" data-type=\"URL\" data-id=\"https:\/\/www.sars.gov.za\/about\/sars-tax-and-customs-system\/tax-statistics\/\" target=\"_blank\">Tax Statistics<\/a>, which provide an overview of the country&#8217;s tax-revenue collection and tax-return information for the 2019 to 2023 tax years.<\/p>\n\n\n\n<p>The report showed that in the 2022\/23 fiscal year, SARS:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Collected a total of R2.07&nbsp;trillion in gross tax revenue (R183 billion or 9.7% more than in the prior year);<\/li>\n\n\n\n<li>Refunded taxes worth R381 billion (R60 billion or 18.7% more than in the prior year);<\/li>\n\n\n\n<li>Netted tax revenue amounting to R1.69 trillion (R123 billion or 7.8% more than in the preceding year).<\/li>\n\n\n\n<li>Secured R231.8 billion in compliance revenue from focused collection efforts (R16 billion or 7.5% more than in the preceding year).<\/li>\n<\/ul>\n\n\n\n<p>&#8220;A broad recovery in tax bases and higher-than-average commodity prices supported the growth in tax revenues&#8221; said the revenue service. <\/p>\n\n\n\n<p><strong>Other key figures in the 2023 Tax Statistics:<\/strong><\/p>\n\n\n<div style=\"position: relative; width: 100%; height: 0; padding-top: 66.6667%; padding-bottom: 0; box-shadow: 0 2px 8px 0 rgba(63,69,81,0.16); margin-top: 1.6em; margin-bottom: 0.9em; overflow: hidden; border-radius: 8px; will-change: transform;\"><iframe style=\"position: absolute; width: 100%; height: 100%; top: 0; left: 0; border: none; padding: 0; margin: 0;\" src=\"https:\/\/www.canva.com\/design\/DAF4vcpRhwU\/view?embed\" allowfullscreen=\"allowfullscreen\"><br \/>\n  <\/iframe><\/div>\n<div style=\"position: relative; width: 100%; height: 0; padding-top: 66.6667%; padding-bottom: 0; box-shadow: 0 2px 8px 0 rgba(63,69,81,0.16); margin-top: 1.6em; margin-bottom: 0.9em; overflow: hidden; border-radius: 8px; will-change: transform;\">  <iframe loading=\"lazy\" style=\"position: absolute; width: 100%; height: 100%; top: 0; left: 0; border: none; padding: 0;margin: 0;\" src=\"https:\/\/www.canva.com\/design\/DAF4vtx3JlE\/view?embed\" allowfullscreen=\"allowfullscreen\" allow=\"fullscreen\">  <\/iframe><\/div>\n\n\n<p>By the end of March 2023, the country&#8217;s personal income tax (PIT) register increased by 4.5% to 25.9 million individuals whilst the number of individuals expected to submit income tax returns sits at 7,068,925. <\/p>\n\n\n\n<p>Personal income tax, geographic, demographic, and other analyses of the assessments of the taxpayers who had been assessed showed that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>2,319,473 (38.7%) of assessed taxpayers were registered in Gauteng;<\/li>\n\n\n\n<li>775,508 (36.3%) of assessed taxpayers lived in the Johannesburg Metro and were taxed on an average taxable income of R472,982;<\/li>\n\n\n\n<li>1,533,415 (25.6%) of assessed taxpayers were from 35 to 44 years old;<\/li>\n\n\n\n<li>3,070,111 (51.3%) of assessed taxpayers were male; <\/li>\n\n\n\n<li>2,884,706 (48.2%) assessed taxpayers were female;<\/li>\n\n\n\n<li>Assessed taxpayers reported aggregated taxable income of R2.1&nbsp;trillion and tax liability of R447.6&nbsp;billion.  The average tax rate was 21.8% (a 0.5% increase);<\/li>\n\n\n\n<li>Income from salaries, wages, pension, overtime and annuities accounted for 75.5% of total taxable income.<\/li>\n<\/ul>\n\n\n\n<p>The tax-to-GDP ratio of the country increased from 23.7% in 2018\/19 to 25.1% in 2022\/23 &#8211; the highest ratio attained since 1994\/95.<\/p>\n\n\n\n<p>Statistics for Company Income Tax (CIT) reveal that, out of the 1,057,040 companies assessed by 30 September 2023 for the 2021 tax year: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>20.7% declared a positive taxable income;<\/li>\n\n\n\n<li>52.6% had taxable income equal to zero;<\/li>\n\n\n\n<li>26.7% reported an assessed loss.<\/li>\n<\/ul>\n\n\n\n<p>Another notable statistic was that 80.8% of active Value-Added Tax (VAT) vendors were companies and close corporations. These vendors contributed 92.6% to Domestic VAT payments and received 92.8% of the VAT refunded.<\/p>\n\n\n\n<p>Import VAT and Customs Duties increased its revenue collection. For the 2022\/23 fiscal year, import VAT was collected in the main from the importation of:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Machinery and Electronics<\/em>&nbsp;(26.4%);&nbsp;<\/li>\n\n\n\n<li><em>Chemical Products<\/em>&nbsp;(13.8%);<\/li>\n\n\n\n<li><em>Vehicles, Aircraft and Vessels<\/em>&nbsp;(11.2%).<\/li>\n<\/ul>\n\n\n\n<p>The largest contributors to Customs Duties were:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Vehicles, Aircraft and Vessels<\/em>&nbsp;(29.0%);&nbsp;<\/li>\n\n\n\n<li><em>Textiles and Clothing<\/em>&nbsp;(15.9%);&nbsp;<\/li>\n\n\n\n<li><em>Food, Beverages and Tobacco<\/em>&nbsp;(13.4%);<\/li>\n\n\n\n<li><em>Machinery and Electronics<\/em>&nbsp;(12.3%).<\/li>\n<\/ul>\n\n\n\n<p>SARS notes that there were various elements that impacted tax revenue collection over the year, including &#8220;global geo-political tensions, energy supply risks, constrained logistics networks, labour and social unrest, as well as weaker global and domestic economic growth and heightened inflation risks.&#8221;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <\/strong><a href=\"https:\/\/businesstech.co.za\/news\/finance\/738831\/sars-is-coming-after-these-taxpayers-with-new-auto-assessments\/\">SARS is coming after these taxpayers with new auto assessments<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The South African Revenue Service (SARS) has released its 2023 annual tax statistics, showing a R183 billion increase in gross tax revenue.<\/p>\n","protected":false},"author":101,"featured_media":736439,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[3246,2887],"class_list":["post-740003","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-sars","tag-tax"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/740003","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\/101"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=740003"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/740003\/revisions"}],"predecessor-version":[{"id":740225,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/740003\/revisions\/740225"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/736439"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=740003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=740003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=740003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}