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Individual Tax Liability Breakdown Guide

The document outlines the framework for calculating individual normal tax liability, detailing components such as gross income, exempt income, deductions, and taxable income. It includes specific calculations for taxable income before and after capital gains, as well as the application of various rebates and medical aid contributions. Additionally, it describes the Physical Presence Test for determining tax residency in South Africa.

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nokuthulaedmah
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11 views3 pages

Individual Tax Liability Breakdown Guide

The document outlines the framework for calculating individual normal tax liability, detailing components such as gross income, exempt income, deductions, and taxable income. It includes specific calculations for taxable income before and after capital gains, as well as the application of various rebates and medical aid contributions. Additionally, it describes the Physical Presence Test for determining tax residency in South Africa.

Uploaded by

nokuthulaedmah
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Individual normal tax liability framework

Salary
Bonus
Local dividends
Foreign dividends
Foreign interest
Local interest
GROSS INCOME
Less: EXEMPT INCOME
SA dividends
Foreign dividends (25/45x8 500)
Local interest (Ltd up to R34 500)
INCOME
Less: DEDUCTIONS
Deductible expenses related to trade (General Deduction)
TAXABLE INCOME BEFORE CAPITAL GAINS
Add: Taxable capital gain
TAXABLE INCOME BEFORE S11F
Less: S11F
Actual: (Include pension fund + RAF + contributions brought forward)
Limited to the lesser of:
• R350 000; or
• 27,5% of the higher of:
Remuneration = (normally salary + bonus)
Taxable income = Taxable Income after CG
Thus: 27,5% × highest of the two above; or
• Taxable Income = Taxable Income b4 CG
Excess carried forward (Actual >Limit)
TAXABLE INCOME BEFORE DONATIONS (S18A)
Less: S18A
Actual
Limited to 10% x Taxable Income b4 donations
Excess carried forward (Actual >Limit)
TAXABLE INCOME

Tax per the 2025 tax table:


42 678 + 26%(Taxable Income - Amount above)
Less: Primary rebate - (17 235)
Less: Secondary rebate - (9 444)
Less: Tertiary rebate - (3 145)
Less: S6A (TP + 1 (728) + per depedant(246)x12
Less: S6B
Net normal tax

S6B - >65 years / Disabilty


Medical Aid Contribution
Less: 3 x S6A
Ltd to Rnil
Add: Qualifying expenses

S6B: 33.3% x 3 350

Physical Presence Test requirements

Present in South Africa (SA) >91 days in the current year


Present in South Africa (SA) >91 days in each of the previous five years
Present in South Africa (SA) >915 days in total in the previous five years
Conclude : Apply / not comply all requirements therefore is / not resident for tax purposes
S6B - <65 years
Medical Aid Contribution
Less:4 x S6A
Ltd to Rnil
Add: Qualifying expenses

Less: 7.5% x Taxalable income

S6B: 25% x

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