Taxation in South Africa

The South African tax system has changed from a source-based to a residence-based system with effect from the 1 January 2001, in line with international trends. This means that South African residents will be taxed on their worldwide income. Non-South African residents will still be taxed on income from South African sources subject to the double taxation agreements with the different countries.

The principle taxes imposed in South Africa are direct and indirect taxes:
- Direct Taxes include Income Tax, Secondary Tax on Companies (STC), Capital Gains Tax (CGT) and Donations Tax.

- Indirect Taxes include Value Added Tax (VAT), Estate Duty, Stamp Duties, Transfer Duties, Excise and Customs Duties, Marketable Security Taxes, Regional Services Council Levies and Skills Development Levies.

For more information on taxation go to www.sars.gov.za .

The draft Taxation Laws Amendment Bill, 2005, has also been released for public comment. The amendment included various changes to some of the sections in the Income Tax Act of 1962.