{"id":862999,"date":"2026-07-05T16:00:00","date_gmt":"2026-07-05T14:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=862999"},"modified":"2026-07-03T17:00:26","modified_gmt":"2026-07-03T15:00:26","slug":"how-to-pay-less-tax-legally-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/862999\/how-to-pay-less-tax-legally-in-south-africa\/","title":{"rendered":"How to legally pay less tax in South Africa"},"content":{"rendered":"\n

Nedbank has outlined several ways South Africans can pay less tax as the new tax year begins.<\/p>\n\n\n\n

According to Nedbank, understanding how the tax system works can help taxpayers ensure they pay only what they legally owe and avoid giving SARS more than necessary.<\/p>\n\n\n\n

While everyone who earns above a certain threshold is required to pay tax, there are several legitimate ways to reduce taxable income and maximise deductions.<\/p>\n\n\n\n

The key is understanding what can be claimed and keeping accurate records throughout the year.<\/p>\n\n\n\n

For most salaried employees, tax is deducted automatically through the pay-as-you-earn (PAYE) system.<\/p>\n\n\n\n

Employers withhold tax from monthly salaries and pay it directly to the South African Revenue Service. Although this simplifies tax compliance, it does not automatically account for all potential deductions.<\/p>\n\n\n\n

Nedbank said filing an annual tax return remains important because it provides an opportunity to claim allowable expenses and potentially receive a refund.<\/p>\n\n\n\n

Taxpayers can complete their returns through SARS eFiling or seek assistance from a tax professional who can identify deductions that may apply to their circumstances.<\/p>\n\n\n\n

For self-employed individuals, the process is more complex. They are generally required to register as provisional taxpayers and make tax payments twice a year, typically in August and February, with an optional top-up payment the following September.<\/p>\n\n\n\n

Because there is no employer deducting tax on their behalf, they need to understand their tax bracket and set aside sufficient funds to meet their tax obligations.<\/p>\n\n\n\n

Nedbank noted that provisional taxpayers have the advantage of factoring deductions into their tax calculations from the outset, helping ensure they pay only what they owe.<\/p>\n\n\n\n

However, this also increases the risk of errors, making it important to understand the rules or seek professional advice.<\/p>\n\n\n\n

A taxpayer\u2019s rate is determined by income levels, with higher earnings attracting higher rates under South Africa\u2019s progressive tax system.<\/p>\n\n\n\n

5 ways to cut your tax bill<\/h2>\n\n\n\n
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Tax brackets are adjusted periodically, usually following the annual Budget, making it worthwhile to stay informed about any changes.<\/p>\n\n\n\n

One of the simplest ways to legally reduce taxes is to track deductible expenses. Nedbank said different professions qualify for different deductions, including business travel and certain entertainment costs related to business activities.<\/p>\n\n\n\n

Keeping detailed records and receipts is essential, whether someone is employed or self-employed.<\/p>\n\n\n\n

Digitising receipts and using accounting software can make the process easier if SARS requests supporting documentation.<\/p>\n\n\n\n

Tax-efficient investments can also play an important role. Contributions to approved retirement products, including retirement annuities, qualify for tax deductions.<\/p>\n\n\n\n

Taxpayers can deduct contributions of up to 27.5% of taxable income, subject to an annual cap of R430,000. Any contributions above this limit are carried forward to future tax years, preserving the tax benefit.<\/p>\n\n\n\n

These contributions can be made monthly, through ad hoc payments, or as a lump sum before the end of the tax year.<\/p>\n\n\n\n

Nedbank said such investments can reduce taxable income and, in some cases, even move taxpayers into a lower tax bracket.<\/p>\n\n\n\n

Tax-free savings products provide another option. South Africans can contribute up to R46,000 annually to qualifying tax-free savings accounts, fixed deposits or unit trusts, allowing investment growth without tax on interest, dividends or capital gains.<\/p>\n\n\n\n

Nedbank said freelancers and remote employees may claim qualifying home-office expenses, provided the workspace is used exclusively for work purposes and meets SARS requirements.<\/p>\n\n\n\n

Charitable giving can also reduce taxable income. Donations to approved public benefit organisations qualify for deductions of up to 10% of taxable income.<\/p>\n\n\n\n

This is provided that taxpayers obtain the required Section 18A certificate. Amounts exceeding the annual limit can be carried forward to future tax years.<\/p>\n\n\n\n

Motorists who use their personal vehicles for business purposes should also maintain a detailed logbook. Recording distances travelled, destinations, and the purpose of each trip can help support claims for business-related travel expenses.<\/p>\n","protected":false},"excerpt":{"rendered":"

Nedbank has outlined several ways South Africans can pay less tax as the new tax year begins.<\/p>\n","protected":false},"author":92,"featured_media":859622,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[1799,853,19922],"class_list":["post-862999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-nedbank","tag-south-africa","tag-south-african-revenue-service-sars"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/862999","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\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=862999"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/862999\/revisions"}],"predecessor-version":[{"id":865476,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/862999\/revisions\/865476"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/859622"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=862999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=862999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=862999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}