What is income tax?
Income tax is the normal tax which is paid on your taxable income.
Examples of amounts an individual may receive, and from which the taxable income is determined, include –
•Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits
•Profits or losses from a business or trade
•Income or profits arising from an individual being a beneficiary of a trust
•Director’s fees
•Investment income, such as interest and foreign dividends
•Rental income or losses
•Income from royalties
•Annuities
•Pension income
•Certain capital gains
Who is income tax for?
You are liable to pay income tax if you earn more than:
For the 2019 year of assessment (1 March 2018 – 28 February 2019) –
•R78 150 if you are younger than 65 years.
•If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R121 000.
•For taxpayers aged 75 years and older, this threshold is R135 300.