Natural Person Tax Rates: 28 February 2025

Natural Person Tax Rates: 29 February 2024

Fringe Benefits

Travelling allowance for the tax year ending 2026

Deductions

Contributions to pension, provident and retirement annuity funds

Home Office Cost

Employees:

Two-Component Retirement Fund System

The two-component system became effective on 1 September 2024, consisting of the following components:

Provisional Tax

Provisional tax is payable by all taxpayers except natural persons if:

Pay As You Earn (PAYE)

General provisions

Companies Normal Taxation

Resident companies, non-resident companies/branch profits and personal service providers

Trusts

Tax rates

Small Business Corporations

A small business corporation is a close corporation, private company (other than a personal service provider) or personal liability company of which:

Turnover Tax For Micro Businesses

Financial years ending on any date between 1 March 2025 and 28 February 2026

Public Benefit Organisations (PBO)

In order to qualify as a PBO an entity needs to have as its main object the carrying out of one or more public benefit activities in a non-profit manner.

Dividends Tax

Dividends tax is a tax levied on the shareholder at a rate of 20% on dividends paid. However, where a dividend in specie is paid, dividends tax is a tax levied on the company declaring the dividend. Dividends tax is normally withheld by the company paying the dividend and is payable at the end of the month following the month in which the dividend was paid. The repayment of contributed tax capital by a company would be regarded as a return of capital and not subject to dividends tax.

Farming Tax

The First schedule of the Income Tax Act regulates farming taxes. The most important sections are:

Capital Gains Tax (CGT)

Persons subject to CGT

Withholding Tax (Other) – Final

Royalties

Value-Added Tax (VAT)

The VAT system comprises of three types of supplies:

Connected Person Definition For Income Tax

Diagram illustrating the rule for determining persons who are related within the third degree of consanguinity

Capital Incentive Allowances

Residence Based Tax

Residents are taxed on their worldwide income, subject to certain exclusions.