DoubleTaxationTaxes on salary: South Africa preliminary data
How much income tax and social contributions are paid on a salary in South Africa, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | ZAR 1,161,364 ≈ €60,000 |
|---|---|
| Income tax | ZAR 354,452 ≈ €18,312 |
| Employee contributions | ZAR 2,125 ≈ €110 |
| Take-home pay | ZAR 804,786 ≈ €41,578 |
| Employer contributions and payroll taxes | ZAR 13,739 ≈ €710 |
| Employer's labour cost | ZAR 1,175,103 ≈ €60,710 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 ZAR 580,682 | €60,000 ZAR 1,161,364 | €120,000 ZAR 2,322,727 |
|---|---|---|---|
| Sole proprietor | ZAR 105,427 20.2 % | ZAR 306,836 29.4 % | ZAR 743,853 35.6 % |
| Company | ZAR 217,407 41.6 % | ZAR 434,815 41.6 % | ZAR 869,629 41.6 % |
| Sole proprietor · Turnover tax for micro businesses | ZAR 0 0.0 % | ZAR 7,727 0.7 % | above the regime's limit |
Special tax regimes
Foreign employment income exemption
For employees · rate 0.0 %
Who: SA tax residents working abroad for more than 183 full days in a 12-month period, including one unbroken stretch of more than 60 full days.
Salary earned for work done abroad is exempt up to R1.25 million a year; the excess is taxed at normal rates.
Legal basis: Income Tax Act 58 of 1962, s. 10(1)(o)(ii)
Tax-free investments (tax-free savings accounts)
For investors · rate 0.0 %
Who: Any natural person (including minors) investing through approved providers (banks, long-term insurers, collective investment schemes, etc.).
Interest, dividends and capital gains earned in approved tax-free investment accounts are exempt from income tax, dividends tax and CGT. Contributions limited to R46,000 a year (from 1 Mar 2026; R36,000 before) and R500,000 over a lifetime; 40% penalty tax on excess contributions.
Legal basis: Income Tax Act 58 of 1962, s. 12T
Tax residence
The tax residence check does not cover South Africa yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 19.356059 ZAR (ECB euro reference rate via Banca d'Italia, 2 Jan 2026: EUR 1 = ZAR 19.3561 and USD 1.1721, cross rate ZAR per USD = 19.3561 / 1.1721. SARB and FRED daily pages could not be opened., 2026-01-02) ↗
Sources
- SARS — Rates of tax for individuals
- SARS — Unemployment Insurance Fund
- SARS — Skills Development Levy
- SARS — Companies, trusts and small business corporations
- SARS — Interest and dividends
- SARS — Turnover tax rates
- SARS — Foreign employment income exemption
- Banca d'Italia — Euro foreign exchange reference rates, 2 Jan 2026
- SARS — Tax-free investments (annual limit R46,000 from 1 Mar 2026, lifetime R500,000)
- SARS — Turnover Tax (threshold R2.3m from 2026, tax-free R600,000)
- SARS — SMME Connect Issue 14, April 2026 (turnover tax ceiling R1m to R2.3m)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.