{"id":804818,"date":"2025-01-02T13:30:00","date_gmt":"2025-01-02T11:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=804818"},"modified":"2025-01-02T12:50:38","modified_gmt":"2025-01-02T10:50:38","slug":"this-is-who-really-pays-tax-in-south-africa-2","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/804818\/this-is-who-really-pays-tax-in-south-africa-2\/","title":{"rendered":"The people who pay the most tax in South Africa"},"content":{"rendered":"\n<p>The South African Revenue Service (SARS) annual tax statistics break down personal income tax (PIT) payers, showing which groups pay the most tax and from where.<\/p>\n\n\n\n<p>The latest tax data from SARS shows that the taxman collected R2.2 trillion in gross tax revenue in the 2023\/24 fiscal year, R87.0 billion or 4.2% more than in the prior year.<\/p>\n\n\n\n<p>The 2023\/24 fiscal year saw a sharp decline in Company Income Tax (CIT) revenue, particularly in the mining sector. <\/p>\n\n\n\n<p>This decline was mainly a result of low commodity prices, which offset the revenue gains from the elevated commodity prices over the previous two years. <\/p>\n\n\n\n<p>In addition, weak global growth, persistent power outages, and logistical disruptions further weighed on the sector. <\/p>\n\n\n\n<p>Value-Added Tax (VAT) revenue growth remained subdued as consumers continued to face financial constraints due to high interest rates, which erodes disposable household income and expenditure.<\/p>\n\n\n\n<p>Personal Income Tax (PIT) revenue, however, remained buoyant, supported by a recovery in employment and earnings. Personal income tax remained the biggest source of tax income (37.4%)<\/p>\n\n\n\n<p>The number of individuals expected to submit Income Tax returns was 7.6 million for the 2023 tax year.<\/p>\n\n\n\n<p>For PIT, geographic, demographic, and other analyses of the assessments of the taxpayers who had been assessed by 9 September 2024 for the 2023 tax year showed that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>2,361,099 (35.5%) of assessed taxpayers were registered in Gauteng.<\/li>\n\n\n\n<li>855,274 (36.2%) of assessed taxpayers lived in the Johannesburg Metro and were taxed on an average taxable income of R484 672.<\/li>\n\n\n\n<li>1,775,779 (26.7%) of assessed taxpayers were from 35 to 44 years old.<\/li>\n\n\n\n<li>3,495,942 (52.6%) of assessed taxpayers were male; 3,148,808 (47.4%) were female.<\/li>\n\n\n\n<li>Assessed taxpayers reported an aggregated taxable income of R2.3 trillion and tax liability of R499.9 billion. <\/li>\n\n\n\n<li>The average tax rate was 21.3% versus 21.5% in the previous tax year.<\/li>\n<\/ul>\n\n\n\n<p>The table below outlines who pays the most tax in each category for PIT:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"table-responsive\"><table class=\"table\"><thead><tr><th>Category<\/th><th>Biggest taxpayer<\/th><\/tr><\/thead><tbody><tr><td>Income bracket<\/td><td>R1 million &#8211; R2 million<\/td><\/tr><tr><td>Age<\/td><td>35-44 years<\/td><\/tr><tr><td>Gender<\/td><td>Male<\/td><\/tr><tr><td>Province<\/td><td>Gauteng<\/td><\/tr><tr><td>City<\/td><td>Johannesburg<\/td><\/tr><tr><td>Job sector<\/td><td>Finance<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tax by income bracket<\/strong><\/h2>\n\n\n\n<p>It is evident that South Africa&#8217;s tax collection is still anchored at the top, reflecting the country&#8217;s progressive tax system.<\/p>\n\n\n\n<p>While those earning over R500,000 a year only make up 19.8% of taxpayers, they account for 46.8% of all taxable income and 76.2% of all assessed income tax.<\/p>\n\n\n\n<p>Zooming into the data and brackets further, millionaires emerge as the biggest taxpayer group in the country, where <strong>242,226 individuals pay 25% of all PIT<\/strong>.<\/p>\n\n\n\n<p>This is followed by those earning R500,00-R750,000 (18%) and those earning between R2 million and R5 million (15%).<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/PIT-distribution.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"911\" height=\"381\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/PIT-distribution.jpg\" alt=\"\" class=\"wp-image-804860\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/PIT-distribution.jpg 911w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/PIT-distribution-300x125.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/PIT-distribution-768x321.jpg 768w\" sizes=\"auto, (max-width: 911px) 100vw, 911px\" \/><\/a><\/figure><\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tax by age<\/strong><\/h2>\n\n\n\n<p>It should come as no surprise that the bulk of taxes come from the country&#8217;s working-age population, particularly those between 35 and 44 years old. <\/p>\n\n\n\n<p>The breakdown of tax assessed by age has remained fairly stable throughout the years, pointing to no dramatic shifts among taxpayers. <\/p>\n\n\n\n<p>This must be read in the context of South Africa&#8217;s struggled with high unemployment, particularly among the youth.<\/p>\n\n\n\n<p>The 18-24 bracket has not only remained consistently low, but saw a significant decline off an already low base in 2023, dropping to 4.9% amid record levels of youth unemployment in the country.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-age-2024.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"352\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-age-2024.jpg\" alt=\"\" class=\"wp-image-804861\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-age-2024.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-age-2024-300x138.jpg 300w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/a><\/figure><\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tax by gender<\/strong><\/h2>\n\n\n\n<p>The gender pay gap remains evident in the tax stats, with males accounting for the majority of tax collected across all but two taxable income brackets.<\/p>\n\n\n\n<p>Things are fairly level at the centre, but spike massively in favour of males past incomes of R750,000 a year or more. <\/p>\n\n\n\n<p>At the top, the vast majority of millionaires are male.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-gender.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"827\" height=\"451\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-gender.jpg\" alt=\"\" class=\"wp-image-804862\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-gender.jpg 827w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-gender-300x164.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-gender-768x419.jpg 768w\" sizes=\"auto, (max-width: 827px) 100vw, 827px\" \/><\/a><\/figure><\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tax by location<\/strong><\/h2>\n\n\n\n<p>As the economic hub and most populous province in the country, Gauteng remains the biggest source of income tax, accounting for almost half of all PIT collected.<\/p>\n\n\n\n<p>Zooming in on the province, most of the tax assessed comes from the City of Joburg, followed by the City of Tshwane.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-province-2024.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"920\" height=\"467\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-province-2024.jpg\" alt=\"\" class=\"wp-image-804863\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-province-2024.jpg 920w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-province-2024-300x152.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-province-2024-768x390.jpg 768w\" sizes=\"auto, (max-width: 920px) 100vw, 920px\" \/><\/a><\/figure><\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tax by job type<\/strong><\/h2>\n\n\n\n<p>Most PIT is sourced from income in South Africa, being wages, salaries and other remuneration. This makes up 75.6% of all PIT collected.<\/p>\n\n\n\n<p>Within this income category, the stats break down the various job sectors this comes from, largely via pay as you earn (PAYE).<\/p>\n\n\n\n<p>Almost half of PAYE comes from the finance sector, which includes intermediation, insurance, real estate and business services.<\/p>\n\n\n\n<p>Community, social and personal services make up 27.5%. Notably, the community sector includes government jobs and services.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-job-type-2024.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"830\" height=\"602\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-job-type-2024.jpg\" alt=\"\" class=\"wp-image-804864\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-job-type-2024.jpg 830w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-job-type-2024-300x218.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/12\/Tax-by-job-type-2024-768x557.jpg 768w\" sizes=\"auto, (max-width: 830px) 100vw, 830px\" \/><\/a><\/figure><\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/804100\/the-tiny-municipality-in-south-africa-where-people-earn-more-than-r500000-a-year\/\">The tiny municipality in South Africa where people earn more than R500,000 a year<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A geographic and demographic breakdown of South Africa&#8217;s latest tax stats shows who are the biggest taxpayers in the country &#8211; where they live, and what they do.<\/p>\n","protected":false},"author":10,"featured_media":785037,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[3246,19922,20275],"class_list":["post-804818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-sars","tag-south-african-revenue-service-sars","tag-value-added-tax-vat-2"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/804818","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=804818"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/804818\/revisions"}],"predecessor-version":[{"id":805308,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/804818\/revisions\/805308"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/785037"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=804818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=804818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=804818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}