Guide to investing in South Africa
Gross income

  • Receipts/accruals of a South African resident

  • Receipts/accruals sourced or deemed to be sourced in South Africa accruing to a non-resident
Less: exempt income

Less: allowable deductions

Less: other tax allowances

An example of this is income from government incentives

Non-capital expenses incurred in South Africa in the production of the taxpayer’s income

e.g. Capital allowances on Plant and Machinery

Plus: taxable capital gain

Refer to notes on capital gains tax

Equals: taxable income

Taxed at the rate of tax applicable to the entity