Income tax is the normal tax which is paid on an individual’s taxable income. The individual is liable to pay income tax if they earn more than R63 556 in the 2013 year of assessment, and are younger than 65 years of age. If they are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R99 056. For taxpayers aged 75 years and older, this threshold is R110 889.
The rates of tax chargeable on taxable income are determined annually by Parliament, and are generally referred to as “marginal rates of tax” or “statutory rates”. The rate of tax levied on an individual is set on a sliding scale which results in the tax increasing as taxable income increases. Every year, the Minister of Finance announces the rates to be levied by publishing the applicable tax tables during the annual budget.
SARS queries and enquiries
SARS Registration For Income Tax
If an individual earns a taxable income which is above the tax threshold, they must register as a taxpayer with SARS.
SARS registration for Provisional Tax
Provisional tax is not a separate tax. It is merely a system that requires taxpayers to provide for their final tax liability, in advance, by paying at least two amounts in the course of the year of assessment, which are based on estimated taxable income. Final liability, however, is determined upon assessment.
Any person who receives income (or to whom income accrues) other than remuneration is a provisional taxpayer. Examples include rental income, interest income or other income from the carrying on of any trade. If you receive this type of income (or should that income accrue to you), you will always be a provisional taxpayer