South African Tax Reference

SA Tax Obligations Matrix

VAT, income tax, PAYE, provisional tax, and corporate tax are four different things — and they apply differently depending on who you are. This guide shows exactly what applies to you.

Tax / Obligation	Form	Individual	Sole Prop	Company
Personal Income Tax (PIT) Annual (Aug–Oct filing season)	`ITR12`	Mandatory	Mandatory	Conditional
PAYE (Pay As You Earn) Monthly (by 7th)	`EMP201 / IRP5`	Mandatory	Conditional	Mandatory
Provisional Tax Twice yearly (Aug + Feb)	`IRP6`	Conditional	Mandatory	Mandatory
Corporate Income Tax (CIT) Annual (within 12 months of year-end)	`ITR14`	Not Applicable	Not Applicable	Mandatory
VAT (Value-Added Tax) Monthly or bi-monthly (by 25th on eFiling)	`VAT201`	Not Applicable	Conditional	Conditional
UIF (Unemployment Insurance Fund) Monthly (with PAYE)	`EMP201 / UI-19`	Mandatory	Conditional	Mandatory
SDL (Skills Development Levy) Monthly (with PAYE)	`EMP201`	Not Applicable	Conditional	Conditional
EMP501 Reconciliation Twice yearly (Oct interim + May annual)	`EMP501`	Not Applicable	Conditional	Mandatory
Dividends Withholding Tax (DWT) Per dividend declaration	`DTR01 / DTR02`	Not Applicable	Not Applicable	Mandatory
Capital Gains Tax (CGT) Annual (included in income tax return)	`ITR12 / ITR14`	Conditional	Conditional	Conditional
Turnover Tax Twice yearly (Aug + Feb)	`TT01 / TT02`	Not Applicable	Conditional	Conditional

Mandatory — always applies Conditional — depends on turnover, structure, or activity Not Applicable

Personal Income Tax (PIT)

ITR12Annual (Aug–Oct filing season)

Mandatory

Conditional

Tax on all income earned by a natural person — salary, freelance income, rental, dividends, and more. Taxed at progressive rates from 18% to 45%.

Important: Company directors must also file a personal ITR12 for their salary and dividends — separate from the company's ITR14.

PAYE (Pay As You Earn)

EMP201 / IRP5Monthly (by 7th)

Mandatory

Conditional

Mandatory

Income tax deducted from an employee's salary by the employer every month and paid to SARS on their behalf.

Important: Sole proprietors are not employees of their own business — they pay provisional tax instead. Companies must deduct PAYE from every director's salary.

Provisional Tax

IRP6Twice yearly (Aug + Feb)

Conditional

Mandatory

A method of paying income tax in advance, in two instalments per year. Prevents a large lump-sum tax bill at year-end.

Important: Individuals only need to pay provisional tax if they earn more than R30,000 per year from non-salary sources. For sole proprietors and companies, it is always mandatory.

Corporate Income Tax (CIT)

ITR14Annual (within 12 months of year-end)

Not Applicable

Mandatory

Tax on a company's taxable profit at a flat rate of 27%. Separate from the director's personal income tax.

Important: The standard CIT rate is 27%. Small Business Corporations (SBCs) with turnover under R20m qualify for lower rates starting at 0% on the first R95,750 of taxable income.

VAT (Value-Added Tax)

VAT201Monthly or bi-monthly (by 25th on eFiling)

Not Applicable

Conditional

A 15% tax on the supply of goods and services. Businesses collect VAT from customers and pay the net amount to SARS.

Important: VAT registration is compulsory above R1 million turnover in any 12-month period. Voluntary registration is possible from R50,000. Individuals earning only a salary are not VAT vendors.

UIF (Unemployment Insurance Fund)

EMP201 / UI-19Monthly (with PAYE)

Mandatory

Conditional

Mandatory

A 2% contribution (1% employer + 1% employee) on remuneration, providing unemployment and maternity benefits.

Important: Sole proprietors do not contribute UIF for themselves — only for any employees they hire. All companies with employees (including director-employees) must contribute.

SDL (Skills Development Levy)

EMP201Monthly (with PAYE)

Not Applicable

Conditional

A 1% levy on the total wage bill, paid to SARS and distributed to SETAs to fund skills development.

Important: SDL only applies if the total annual wage bill exceeds R500,000. Businesses below this threshold are exempt.

EMP501 Reconciliation

EMP501Twice yearly (Oct interim + May annual)

Not Applicable

Conditional

Mandatory

Annual reconciliation of all PAYE, UIF, and SDL deductions, with IRP5/IT3(a) certificates issued to all employees.

Important: Any employer — including a sole proprietor with staff — must submit EMP501. The annual submission is due 31 May; the interim submission is due 31 October.

Dividends Withholding Tax (DWT)

DTR01 / DTR02Per dividend declaration

Not Applicable

Mandatory

A 20% tax withheld from dividends paid by a company to its shareholders.

Important: The company withholds 20% from the dividend and pays it to SARS. Certain exemptions apply (e.g. dividends paid to other SA companies). Sole proprietors cannot pay dividends — they are not a separate legal entity.

Capital Gains Tax (CGT)

ITR12 / ITR14Annual (included in income tax return)

Conditional

Tax on the profit (capital gain) when you sell an asset for more than you paid for it. Included in income tax at an inclusion rate.

Important: Individuals include 40% of the net capital gain in taxable income (effective max rate ~18%). Companies include 80% (effective rate ~21.6%). The first R40,000 of individual gains per year is excluded.

Turnover Tax

TT01 / TT02Twice yearly (Aug + Feb)

Not Applicable

Conditional

A simplified alternative tax for micro-businesses with annual turnover under R1 million. Replaces income tax, provisional tax, and CGT.

Important: A deliberate election — you must apply to SARS to use Turnover Tax. It significantly simplifies tax obligations for qualifying micro-businesses. VAT and PAYE still apply separately.

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This guide is for general information purposes only and does not constitute tax advice. Tax legislation changes regularly. Always consult a registered tax practitioner for advice specific to your situation. For official SARS information, visit sars.gov.za .