income tax

Income tax in South Africa is payable to SARS, the amounts due depend on tax residency status and the amount earned by yourself or your company. In January 2001, the South African income tax regime was changed to a residence-based system, from the previously source-based system. Irrespective of source of income, taxpayers residing in South Africa are taxed on worldwide income.

With the expertise offered by the MMS Cloud Accounting team, we can assist both corporates and individuals to meet their annual tax requirements. Meeting your tax deadlines and filing your returns in time, before the yearly deadline, can prevent you from having to pay harsh penalties.

Our standard accounting packages include taxation services to address submission requirements as well as client services that remind you of upcoming taxation deadlines. To see our accounting packages, click here.


South African companies, which includes all companies residing and operating within The Republic of South Africa, are liable to Income Tax under the Income Tax Act of 1962. Whether your income is derived from within or outside the country, you are still required to submit an annual tax return and pay the respective taxation due.
Companies are taxed on the amount of income they receive per tax year (a consecutive 12-month period). Corporate tax is applicable to all of the following types of corporations:
  • Listed / Unlisted public companies
  • Private Companies
  • Body Corporates
  • Share Block Companies
  • Collective Investment Schemes
  • Small Business Corporation (s12E)
  • Dormant Companies
  • Public Benefit Companies
  • Close Corporations
  • Co-operatives
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    Personal tax is levied on South African residents’ global income, with exemption to avoid double taxation in certain instances.
    The following earnings are subject to tax:
    • Any type of employment income. This includes salaries, bonuses, overtime, and taxable benefits and allowances (these taxes are normally deducted by employers via PAYE)
    • Pension income (not including foreign pensions)
    • Certain capital gains
    • Profits or losses from a business or self-employed trade
    • Annuities
    • Royalties
    • Director’s fees
    • Investment income

    To pay your tax, you need to obtain a SARS tax number and are required to submit an annual tax return.

    For professional assistance with your personal or business-related tax requirements, be it personal or corporate, please contact us.