Taxation Types in South Africa

South African Reserve Bank (SARS)

Types of Taxes

2.1.1 Direct Tax

  • Tax that cannot be shifted to another person.
  • The payer cannot recover the tax money from others after payment.
Personal Income Tax
  • Tax paid directly by individuals (households) from their income.
Corporate/Company Income Tax
  • Tax paid directly by businesses on their profits.
Capital Gain Tax
  • Tax paid directly by individuals or institutions on income from the sale of properties.

2.1.2 Indirect Tax

  • Tax that can be shifted to another person.
  • The payer collects the tax money from the next person.
Value-Added Tax (VAT)/Sales Tax
  • Currently at 15%.
  • Tax paid by consumers on goods and services.
Fuel Levy/Petrol Tax
  • Tax paid by individuals and businesses on petrol and diesel purchases.
Excise Duty
  • Tax charged on specific goods to discourage consumption (e.g., tobacco and alcohol).
Airport Tax
  • Tax paid by individuals using airplanes.
Import Duty
  • Tax paid on imported goods and services.
Sin Tax
  • Excise tax included in the price of certain products.
  • Helps to raise money from sale rather than consumption.