Tax over the years

Taxation of Foreign Employment Income
January 20, 2020
Diesel rebates – Guidance from the Supreme Court of Appeal
February 5, 2020

It has often been said that inflation is the destroyer of wealth. To put this statement into a tax perspective, it is interesting to have a look back at historical rates of tax and related interest rates. It is, of course, true that earnings have also increased over the years, but it is nevertheless interesting to see from where we have come and even more interestingly, where the 2020 budget presentation, due in February 2020, will lead us.

Rate of tax for natural persons:

1996
Taxable income (R) Rate of tax (R)
1 – 5 000 17% of each R1
5 001 – 10 000 850 + 18% of the amount above 5 000
10 001 – 15 000 1 750 + 19% of the amount above 10 000
15 001 – 20 000 2 700 + 20% of the amount above 15 000
20 001 – 30 000 3 700 + 21 % of the amount above 20 000
30 001 – 40 000 5 8700 + 31% of the amount above 30 000
40 001 – 50 000 8 900 + 42% of the amount above 40 000
50 001 – 70 000 13 100 + 43% of the amount above 50 000
70 001 – 80 000 21 700 + 44% of the amount above 70 000
80 001 and above 26 100 + 45% of the amount above 80 000
2002
Taxable income (R) Rate of tax (R)
1 – 38 000 18% of each R1
38 001 – 55 000 6 840 + 26% of the amount above 38 000
55 001 – 80 000 11 260 + 32% of the amount above 55 000
80 001 – 100 000 19 260 + 37% of the amount above 80 000
215 001 and above 72 660 + 42% of the amount above 215 000
2010
Taxable income (R) Rate of tax (R)
1 – 140 000 18% of each R1
140 001 – 221 000 25 200 + 25% of the amount above 140 000
221 001 – 305 000 45 450 + 30% of the amount above 221 000
305 001 – 431 000 70 650 + 35% of the amount above 305 000
431 001 – 552 000 114 750 + 38% of the amount above 431 000
552 001 and above 160 730 + 40% of the amount above 552 000

Rate of tax for companies:

2017
Year of assessment  Rate of tax Surcharge Transitional levy (1) UPT (2)
1981 40% 5% 33.3%
1992 48%
1995 35% 5%
2000 30%
2009 28%
  • To finance transitional costs incurred during the 1993 and 1994 transitional process to democracy, a once-off transitional levy was charged during the 1995 year of assessment. This levy was calculated as a percentage of taxable income in excess of R50 000 before set-off of any balance of assessed loss was brought forward.
  • Undistributed profits: UPT was payable by companies at the rate of 33⅓% on the amount by which the distributable profit of a company exceeded the dividends distributed during the specified period relating to the year of assessment. In light of the exemption of income in the form of dividends in the hands of natural persons and CCs, this tax was no longer warranted as of 1 April 1990.

Excise duty:

2006
Products  Duty
Malt beer 3364,98 c/l absolute alcohol (aa)
Sorghum beer 7,82c/kg
Spirits (average) 5042,01c/li aa
Sparkling wine 387,99c/li
Fortified wine 263,14c/li
Unfortified wine 140,52c/li
Traditional African Beer Powder 34,7c/kg
Other fermented beverages e.g. ciders 168,24c/li
2012
Products  Duty
Malt beer R53.97/l absolute alcohol (aa)
Traditional beer 7.82 c/l
Spirits (average) R93.03/l aa
Sparkling wine R6.97/l
Fortified wine R4.33/l
Unfortified wine R2.32/l
Traditional beer powder 34.7 c/kg
Other fermented beverages e.g. ciders R2.71/l
2017
Products  Duty
Malt beer R86.39/li aa
Traditional beer 7.82c/li
Spirits (average) R175.19/li aa
Sparkling wine R11.46/li
Fortified wine R6.17/li
Unfortified wine R3.61/li
Traditional beer powder 34.7 c/kg

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)