Apparently, there only 2 certainties in life. 1. Death and 2. Taxes. Death is something outside our scope but tax (and personal tax in particular) is one of our main focus areas at BC Accounting Services.
What is personal tax?
Personal tax (Income tax) is the normal tax that is paid on your taxable income.
Examples of amounts an individual may receive, and from which the taxable income is determined, include but not limited to:
- Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits
- Profits or losses from a business or a trade
- Investment income, such as interest and foreign dividends
- Rental income or losses
- Annuities
- Pension income
Who pays personal tax?*
You are liable to pay income tax if you earn more than
- R95 750 if you are younger than 65 years.
- If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R148 217.
- For taxpayers aged 75 years and older, this threshold is R165 689.
When do you pay it?
Tax season is an annual occurrence and usually starts in July and ends at the end of October / early November of each year. These dates are confirmed by SARS and are published in all forms of media.
The suggestion every year is to get all the necessary documents into a file sooner rather than later. Being prepared is always a good idea. This is especially true about filing your tax return. Leaving it to the last minute almost always, lands up in a rushed return being submitted which exponentially increases the chance of errors.
*All information is applicable to South Africa and is contained in this post is available online at www.sars.gov.za and the rates are accurate for the 2025 personal tax year.