Tax Law in South Africa

Tue, 07 Jul 2026 00:00:00 +0000

Introduction

South African tax law governs the imposition, assessment, and collection of taxes. The primary legislation includes the Income Tax Act 58 of 1962, the Value-Added Tax Act 89 of 1991, and the Tax Administration Act 28 of 2011. The South African Revenue Service (SARS) administers the tax system. The Constitution, particularly the right to property and the principle of legality, constrains the exercise of tax powers.

The Income Tax Act 1962

The Income Tax Act 58 of 1962 is the principal statute governing the taxation of income. The Act imposes tax on the taxable income of persons, defined as residents and non-residents with South African source income. The Act provides for the taxation of employment income, business income, investment income, and capital gains. The tax system is progressive for individuals, with marginal rates increasing with income, while companies are subject to a flat rate.

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Tax Law in South Africa

Introduction

The Income Tax Act 1962