Income Tax Act 58 of 1962

The Income Tax Act is South Africa’s principal statute for the taxation of income. Enacted in 1962, it defines taxable income, prescribes tax rates, establishes allowable deductions and allowances, and governs the computation of income tax for individuals, companies, and trusts. The Act is regularly updated through annual tax amendments.

Legal area: Law governing the assessment, collection, and administration of taxes.

Year enacted: 1962

Full text: https://www.gov.za/documents/south-africa-income-tax-act-58-of-1962

Key Provisions

• Section 1: Charge of income tax on taxable income
• Section 10: Exemptions from income tax
• Sections 11-24: Allowable deductions including wear and tear, interest, and donations
• Section 11(k): Medical scheme fees deduction
• Section 23: Limits on deductions for individuals
• Section 25B: Trust taxation

Significance

The Income Tax Act is the foundation of South African tax law. It has been amended extensively, most recently to address international tax cooperation including Base Erosion and Profit Shifting (BEPS) measures and the implementation of the two-pot retirement system.