South Africa

An individual who is 'ordinarily resident' in South Africa — generally the country of their most fixed and settled home — is a tax resident. Someone not ordinarily resident is still treated as resident under a physical-presence test requiring more than 91 days present in the current tax year and each of the preceding five tax years, and more than 915 days in total across those five preceding years.

The tax year for individuals ends on the last day of February. SARS fixes the annual return filing date by government notice each year and issues auto-assessments to many individuals based on third-party data; PAYE is withheld from remuneration, and individuals with non-remuneration income must register as provisional taxpayers and make two payments, by the end of August and the end of February.

Non-residents are taxed only on their South African-sourced income, at the same progressive rates that apply to residents' worldwide income.

Employees may deduct limited business-related travel, vehicle, and entertainment expenses up to their employer's allowance, plus legal fees tied to employment income. Personal deductions include donations to approved public benefit organizations up to 10% of taxable income, a medical tax credit for medical-scheme contributions and qualifying medical expenses, and contributions to a South African-registered pension, provident, or retirement annuity fund, subject to caps.

Businesses must register as VAT vendors once annual taxable turnover exceeds ZAR 1 million, a threshold expected to rise to ZAR 2.3 million once the relevant legislation is promulgated, while voluntary registration is available from ZAR 50,000 (expected to rise to ZAR 120,000). The two main tax periods are monthly, generally for large vendors, and bi-monthly, the standard tax period issued by SARS.

Zero-rated supplies include exports, certain basic foodstuffs, fuel products subject to the fuel levy, specified farming goods, and the sale of an enterprise as a going concern. Exempt supplies, which carry no input tax deduction, include financial services, residential rentals, non-international passenger transport, and educational services.

An individual resident in South Africa who disposes of a primary residence is exempt from capital gains tax on up to ZAR 3 million of the gain, apportioned if the property was previously leased or used partly for trade. Individuals are separately entitled to an annual exclusion of ZAR 50,000 against their net capital gain for the year, rising to ZAR 440,000 in the year of the taxpayer's death.