What is it?
Income tax is the normal tax which is paid on your taxable income.
Examples of amounts an individual may receive, and from which the taxable income is determined, include –
Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits
Profits or losses from a business or trade
Income or profits arising from an individual being a beneficiary of a trust
Director’s fees
Investment income, such as interest and foreign dividends
Rental income or losses
Income from royalties
Annuities
Pension income
Certain capital gains
Who is it for?
You are liable to pay income tax if you earn more than:
For the 2020 year of assessment (1 March 2019 - 29 February 2020) - see changes from last year
R79 000 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R122 300.
For taxpayers aged 75 years and older, this threshold is R136 750.
For the 2019 year of assessment (1 March 2018 - 28 February 2019) -
R78 150 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R121 000.
For taxpayers aged 75 years and older, this threshold is R135 300.
For the 2018 year of assessment (1 March 2017 - 28 February 2018)
R75 750 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R117 300.
For taxpayers aged 75 years and older, this threshold is R131 150.
For the 2017 year of assessment (1 March 2016 - 28 February 2017)
R75 000 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R116 150.
For taxpayers aged 75 years and older, this threshold is R129 850.
For the 2016 year of assessment (1 March 2015 - 29 February 2016)
R73 650 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R114 800.
For taxpayers aged 75 years and older, this threshold is R128 500.
Top tip: You do not need to submit a return if ALL the criteria below apply to you:
Your total employment income / salary for the year (March 2018 to February 2019) before tax (gross income) was not more than R500 000; and
You only received employment income / salary for the full year of assessment (March 2018 to February 2019) from one employer; and
You have no car allowance/company car/ travel allowance or other income (e.g. interest or rental income); and
You are not claiming tax related deductions/rebates (e.g. medical expenses, retirement annuity contributions other than pension contributions made by your employer, travel).
Source: SARS Website
ULR: https://www.sars.gov.za/TaxTypes/PIT/Pages/default.aspx
