Income tax is a type of tax that is levied on taxable income.
The following are examples of quantities that an individual may receive and from which taxable income is calculated:
Salary, earnings, bonuses, overtime pay, taxable (fringe) benefits, allowances, and certain lump sum benefits are all examples of remuneration (revenue from employment).
Profits or losses made by a company or trade
Income or profits derived from an individual’s status as a trust beneficiary
Fees for directors
Interest and foreign dividends are examples of investment income.
Profits or losses on rental properties
Royalties as a source of income
Annuities
Income from a pension
Gains on certain investments
Who is it intended for?
If you earn more than the following amounts, you must pay income tax.
For the 2022 year of assessment (1 March 2021 – 28 February 2022)
R87 300 if you are younger than 65 years.
If you are 65 years of age to below 75 years, the tax threshold (i.e. the amount above which income tax becomes payable) is R135 150.
For taxpayers aged 75 years and older, this threshold is R151 100.