SARS Compliance Guide

Everything you need to know about South African taxes – and how FINEXA keeps you compliant.

Why SARS Compliance Matters

Every business operating in South Africa must comply with tax laws administered by the South African Revenue Service (SARS). Non‑compliance can lead to penalties, interest, audits, and even criminal prosecution. FINEXA helps you stay on top of all tax obligations – from VAT to PAYE to Corporate Income Tax – with automated calculations, timely filings, and audit‑ready records.

All South African Taxes Explained

Value-Added Tax (VAT)

Standard rate: 15%. Zero‑rated (0%) and exempt supplies also apply. Registered vendors must submit VAT201 returns monthly, bi‑monthly, or every 6 months.

📅 Filing: Monthly/Bi-monthly/Quarterly

Pay-As-You-Earn (PAYE)

Employers must deduct PAYE from employee salaries based on progressive tax tables (18% – 45%). Monthly submissions via EMP201 and annual EMP501 reconciliation.

📅 Filing: Monthly (EMP201) + Annual (EMP501)

Unemployment Insurance Fund (UIF)

Employers contribute 1% of gross pay, employees contribute 1% (total 2%). Submitted monthly via EMP201. Provides short‑term relief to unemployed workers.

📅 Filing: Monthly (with PAYE)

Skills Development Levy (SDL)

1% of gross pay (for companies with annual payroll over R500,000). Funds training and skills development through SETAs.

📅 Filing: Monthly (with PAYE)

Corporate Income Tax (CIT)

Rate: 27% for companies (27% for years ending after 31 March 2023). Provisional tax payments (twice a year) plus final return.

📅 Filing: Annual (ITR14) + Provisional (IRP6)

Personal Income Tax (PIT)

Progressive rates from 18% to 45%. Employees pay through PAYE; sole proprietors and investors file annual returns (ITR12).

📅 Filing: Annual (ITR12) + Provisional if applicable

Capital Gains Tax (CGT)

Included in taxable income. Inclusion rates: 40% for individuals (effective max 18%), 80% for companies (effective max 21.6%).

📅 Filed with Income Tax returns

Transfer Duty

Payable on acquisition of property (not VAT). Rates from 0% to 13% depending on property value.

📅 Filing: Within 6 months of transaction

Dividends Tax

20% withheld by companies when paying dividends to shareholders (unless exemption applies).

📅 Filing: Monthly (DT01/DT02)

Excise Duties

Levied on alcohol, tobacco, and certain luxury goods. Handled by manufacturers and importers.

📅 Filing: Varies by product

Carbon Tax

R146 – R192 per tonne of CO₂ equivalent (phased increase). Applies to fuel combustion and industrial processes.

📅 Filing: Bi‑annual

Customs & Import Duties

Levied on imported goods. Rates vary by product category (0% – 30%+).

📅 Filing: Per shipment (SAD500)

How FINEXA Simplifies SARS Compliance

Ready to take the stress out of SARS compliance?

Join hundreds of businesses using FINEXA to automate tax and stay audit‑ready.

Get Started