Guide to investing in South Africa
The principal source of direct tax revenue in South Africa is income tax. South Africa has a residence-based system of taxation: 

  • South African residents are therefore taxed on their worldwide income, subject to a number of exceptions.
  • Non-residents are taxed on income earned from a South African source. 
  • The question of residency needs to be addressed in the light of any double taxation agreements, which can provide relief
  • Any company, which is either incorporated in, or effectively managed from South Africa, is deemed to be a South African resident for tax purposes. 
  •  Domestic companies are taxed at a flat rate of 28%. From years of assessment commencing on or after 1 April 2012, branches of foreign companies which have their effective management outside South Africa will also be taxed at a rate of 28% (prior to this date they were subject to taxation on South African-sourced profits at a rate of 33%). Trusts (other than special trusts) are taxed at a rate of 40%.