In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
The tax year begins on 1 March and ends on the final day of February the following year
- Accounting Standards
Accounting principles are very strict in South Africa and in accordance with International Accounting Standards Board.
- Accounting Regulation Bodies
- Accounting Reports
In accordance with international accounting rules, the accounting structure is as follow: the balance sheet, the profit and loss account and the notes to the accounts. For more information, you can consult the Guide (See pages 24-28) published by the Accounting Standards Board.
- Publication Requirements
All the companies must hold their accounts in English, these recordings must include: capital and obligations of the company, the fixed assets register, the incomes, the annual stock report, a summary of the goods sold and bought.
Moreover, they have to produce their annual financial statement. It must contain the balance sheet and the annexes, a report on the incomes with annexes, a report made authenticated by the director, a report made authenticated by the executives and a profit and loss account.
- Professional Accountancy Bodies
SAICA , South African Institute of Chartered Accountants
SAIPA , South African Institute of Professional Accountants
- Certification and Auditing
The companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization.
You can consult an external auditor: Independent Regulatory Board for Auditors (IRBA) ; ERNST & YOUNG in South Africa ; KMPG in South Africa ; PRICEWATERHOUSECOOPERS in South Africa
- Accounting News
South Africa Accounting News
- Nature of the Tax
VAT = Valued Added Tax (BTW = Belasting op Toegevoegde Waarde in Afrikaans).
- Tax Rate
- Reduced Tax Rate
Reduced VAT rates range from 0% (on education services, basic foods, diesel fuel and gasoline, export of Goods and Services) up to the standard rate of 14%. For example, VAT on hotels and retirement hostels is charged at 8.4%.
- Other Consumption Taxes
Public Benefit Organization under Section 30 of South Africa's Income Tax Act is eligible for exclusion from taxation.
Learn more about Service Providers in South Africa on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
- Tax Rate For Foreign Companies
Residents and locally controlled companies are taxed on worldwide income, where as foreign companies (meeting certain criteria are considered non-resident for tax purposes ) are taxed on South African-source income and capital gains on immovable property in South Africa.
- Capital Gains Taxation
Charged at the normal income tax rate on 50% of the gain i.e. at 14.5% (except and under specifics conditions gains on the sale of substantial foreign shareholdings).
- Main Allowable Deductions and Tax Credits
Motor vehicle expenses, legal expenses, medical and dental expenses, bad and doubtful debts, and contributions to pension and provident funds and retirement annuities. Lease premiums may be written off for the period of the lease. Municipal rates may also be deducted from taxable income.
- Other Corporate Taxes
Capital duty, Payroll tax, Real property tax, Social security, Stamp duty, Transfer tax, Gift tax.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|ZAR 0 to 160,000
|ZAR 160,001 to 250,000
|ZAR 250,001 to 346,000
|ZAR 346,001 to 484,000
|ZAR 484,001 to 638,600
|ZAR 638,601 and above
- Allowable Deductions and Tax Credits
Medical aid, Contributions to government approved pension and retirement funds, Charitable donations, etc.
- Special Expatriate Tax Regime
No special expatriate tax regime exits in South Africa. Expatriates are taxed at the same rates as locals, but only on their South African-sourced income.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
South African Revenue Service
- Withholding Taxes
Withholding tax rates for non residents are 15% for dividends, 0% for interest, 15% for royalties and 15% on payments to artists and sportsmen.
Learn more about Taxes and Accounting in South Africa on Globaltrade.net, the Directory for International Trade Service Providers.
- Independence of Justice
- Equal Treatment of Nationals and Foreigners
Foreign nationals can largely expect impartial trial from the country's judicial system.
- The Language of Justice
In any of the official language of South Africa.
- Recourse to an Interpreter
Services of an interpreter are available in case the language of the proceedings is not understood by the accused.
- Sources of the Law and Legal Similarities
The legal system is based on Roman-Dutch law and English common law.
South African commercial laws and company laws are similar to the laws of the United Kingdom.
- Checking National Laws Online
Legislation South Africa
Learn more about Lawyers and Legal in South Africa on Globaltrade.net, the Directory for International Trade Service Providers.
- General Information
Communicaid, South African business culture.
Kwintessential, South African culture and custom on the Kwintessential website.
Executiveplanet, South African business culture on the Executiveplanet website.
- Opening Hours and Days
Generally, business hours are weekdays from 8:00 a.m. to 1:00 p.m. and 2:00 p.m. to 4:30 p.m. Offices are closed on Saturday and Sunday. On Saturday, Shops are open till 1.00 p.m. and Banks till 11.00 a.m.
|New Years Day
|Human Rights' Day
||Friday before Easter Sunday
||Monday after Easter Sunday
|National Women's Day
|Day of Reconciliation
|Day of Goodwill
- Holiday Compensation
If a public holiday falls on the week-end, it is shifted to next Monday.
Periods When Companies Usually Close
|Christmas time(2-3 days)
||Dec 25 - 27
|New-Year time (1-2 days)
||Jan 1 - 2
||A week between Christmas and the New Year.
© Export Entreprises SA, All Rights Reserved.
Last Updates: February 2015