Who should be paying for tax?

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Who should be paying for tax
Who should be paying for tax
Who should be paying for tax
Who should be paying for tax

In essence everyone pays for tax indirectly through VAT (Value-Added Tax) (This is where almost 3rd of total revenue from national government taxes is derived from) in South Africa, generally tax is paid by individuals who earn an income, it can be from, but not limited to, a salary, fees and commission.

There are different types of tax that’s paid by different types of individuals and companies. Companies in South Africa pay corporate tax in their annual income, companies also includes close corporations and trust.

[ht_message mstyle=”info” title=”” show_icon=”true” id=”” class=”” style=”” ]Most of the State’s income comes from income tax from individuals and corporates.[/ht_message]

Tax and Non-residents

The Tax in South Africa is residence-based, and that’s how the system was designed. To cater for South African Individuals who are subject to some exclusions as far as paying for tax is a concern.

As a South African earning individual you will be taxed based on worldwide income despite where you get your income. However, non-residents are only taxed on their income from a South African source.

[ht_message mstyle=”success” title=”” show_icon=”true” id=”” class=”” style=”” ]iRead: Submitting tax returns to SARS[/ht_message]

Should you be making money from abroad as a non-resident in South Africa, you will not be paying for tax as the income will not be from a South African Source, if that changes and your income is from a South Africa source, you are instantly eligible to pay for tax as a non-resident.

Conclusion

To avoid being penalized, you need to be paying for your tax when it’s due. You can also learn more about Tax Returns and Annual Returns.  Pay for your tax at the right time at all times, know the Tax SeasonAlso please remember that when you have a business, or rather when you are running a business, you may register for VAT.

Don’t be afraid of a taxman, just be on time and submit your returns when they are due.



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