Gambling Tax South Africa 2020
Unlike the United States, South Africa doesn't generally tax recreational gambling winnings. You may be required to report large winnings to the South African Revenue Service, but your windfall won't be subject to capital gains taxes. This is merely a rule of thumb that applies to recreational players. Mar 01, 2019 Estate duty is levied at a flat rate of 20% on the property of South African tax residents and the South African property of non-residents. A basic deduction of R 3.5 million applies in respect of estate duty. If you play international lotteries from South Africa, there may be tax laws in those countries that come into effect before you receive your winnings. For example, the United States government imposes a 25% federal tax on any Mega Millions prize above $5,000.01, while the jackpot is subject to a 39% federal tax withholding.
✔ 2020 Tax Rates, Thresholds and Allowance for Individuals, Companies, Trusts and Small Business Corporations (SBC) in South Africa
You are viewing the income tax rates, thresholds and allowances for the 2020 Tax Year in South Africa. If you are looking for an alternative tax year, please select one below.
The following tax rates, thresholds and allowances are valid for the 2019 - 2020 Tax Year in South Africa which is known as the 2020 Tax Year. The Tax Year runs from 1 March 2019 - 28 February 2020
Rates for Individuals
Taxable Income (R) | Percentage rate of tax due within the threshold |
---|---|
R0.00 - R195,850.00 | 18% of income within the threshold |
R195,850.00 - R305,850.00 | 26% of income within the threshold + R35,253.00 |
R305,850.00 - R423,300.00 | 31% of income within the threshold + R63,853.00 |
R423,300.00 - R555,600.00 | 36% of income within the threshold + R100,263.00 |
R555,600.00 - R708,310.00 | 39% of income within the threshold + R147,891.00 |
R708,310.00 - R1,500,000.00 | 41% of income within the threshold + R207,448.00 |
R79,000.00 | Tax Free Threshold Under 65 |
R122,300.00 | Tax Free Threshold Over 65 |
R136,750.00 | Tax Free Threshold Over 75 |
R14,220.00 | Tax Rebate Under 65 |
R7,794.00 | Tax Rebate Over 65 |
R2,601.00 | Tax Rebate Over 75 |
Medical Tax Credit Rates
Gambling Tax South Africa 2020 Permits
Please note that the Medical Tax Credit is a non-refundable tax credit and cannot be carried over to the next tax year. The MTC is a fixed monthly amount that increases in line with the number of dependants you claim for. Note that the figures below show the annual Medical Tax Credit amounts
R3,720.00 | Medical Tax Credit for the taxpayer who paid the medical scheme contributions |
R3,720.00 | Medical Tax Credit for the first dependant |
R2,508.00 | Medical Tax Credit for each additional dependant(s) |
7.5% | Medical Tax, percentage of deductible earning |
Companies, Trusts and Small Business Corporations (SBC)
% | Company with financial years ending 1 April 2019 - 31 March 2020 |
% | Personal service provider companies |
% | Foreign resident companies which earn income from a source in South Africa |
% | Trusts (other than special trusts) assessment year ending 1 March 2019 - 31 Febuary 2020 |
Taxable Income (R) | Percentage rate of tax due within the threshold |
---|---|
R0.00 - R0.00 | % of income within the threshold |
R0.00 - R0.00 | % of income within the threshold + R0.00 |
R0.00 - R0.00 | % of income within the threshold + R0.00 |
R0.00 - R0.00 | % of income within the threshold + R0.00 |
Medical Tax Credit Rates
Please note that the Medical Tax Credit is a non-refundable tax credit and cannot be carried over to the next tax year. The MTC is a fixed monthly amount that increases in line with the number of dependants you claim for. Note that the figures below show the annual Medical Tax Credit amounts
R3,720.00 | Medical Tax Credit for the taxpayer who paid the medical scheme contributions |
R3,720.00 | Medical Tax Credit for the first dependant |
R2,508.00 | Medical Tax Credit for each additional dependant(s) |
7.5% | Medical Tax, percentage of deductible earning |
Interest and Dividends
R0.00 | Interest Exemptions threshoold for an individual younger than 65 |
R0.00 | Interest Exemptions threshoold for an individual 65 and older |
% | Final Withholding tax charged on interest from a South African source payable to non-residents |
R0.00 | Dividends Tax |
R0.00 | Foreign Dividends |
R0.00 | Foreign Dividends received by individuals from foreign companies (shareholding of less than 10% in the foreign company) |
Gambling Tax South Africa 2020 Winner
Capital Gains Tax (CGT)
% | Capital Gains Tax for Individuals and Special Trusts |
% | Capital Gains Tax for Companies |
% | Capital Gains Tax for Other Trusts |
Retirement Lump Sum Benefits
27.5% | Pension Contributions: Maximum Income contribution |
R350,000.00 | Pension Contributions: Maximum Annual contribution |
Withdrawal Benefit
Taxable Income (R) | Percentage rate of tax due within the threshold |
---|---|
R0.00 - R0.00 | % of income within the threshold |
R0.00 - R0.00 | % of income within the threshold + R0.00 |
R0.00 - R0.00 | % of income within the threshold + R0.00 |
R0.00 - R0.00 | % of income within the threshold + R0.00 |
Retirement & Death Benefits or Severance Benefits
Taxable Income (R) | Percentage rate of tax due within the threshold |
---|---|
R0.00 - R0.00 | % of income within the threshold |
R0.00 - R0.00 | % of income within the threshold + R0.00 |
R0.00 - R0.00 | % of income within the threshold + R0.00 |
R0.00 - R0.00 | % of income within the threshold + R0.00 |
Gambling Tax South Africa 2020 Results
Income Tax Tables are used to calculated individual salaries, apply tax deductions and tax credits to produce a net take home pay (your income after deductions). Below is an example salary after tax deductions based on the 2019 - 2020 tax tables.
R309,300.00 Salary Income Tax Calculation and Salary Example
Gambling Tax South Africa 2020 Calendar
Yearly | %1 | Salary/Tax Component |
---|---|---|
R309,300.00 | 100.00% | Employment Income |
R309,300.00 | 100.00% | Gross Income |
R85,057.50 | 27.50% | Retirement Funds |
R309,300.00 | 100.00% | Taxable Income |
R14,220.00 | 4.60% | Tax Rebate |
R50,530.00 | 16.34% | Income Tax Due |
R50,530.00 | 16.34% | Total Deductions |
R258,770.00 | 83.66% | Net Pay |
R3,093.00 | 1.00% | Employer Contribution to Risk Benefits |
R4,639.50 | 1.50% | Employer Contribution to Retirement Funds |
R317,032.50 | 102.50% | Salary Package [Cost of Employee] |
1 Percentage expressed in relation to Gross Income [R309,300.00].
If you have not encountered tax table information before or if you are unsure of how tax tables affect your income we recommend you read our guide: What are Tax Tables? Tax Tables explained.
The Covid-19 pandemic has had a profound impact on the digital landscape around the world. The mobile industry in Sub-Saharan Africa has largely risen to the challenge of keeping individuals and businesses connected during the pandemic, despite changes in data consumption patterns. However, with nearly 800 million people in the region still not connected to the mobile internet, it has never been more urgent to close the digital divide.
Governments and policymakers should implement policies to enhance access to connectivity and drive investment in more resilient digital infrastructure for the future. This is crucial to reactivating the region’s economy post- Covid-19 despite the sizable contribution mobile technologies and services generated in 2019, at 9% of regional GDP.
Efficient and effective management of spectrum is also key to maximise the opportunities that mobile connectivity can bring to society. Making sure the required spectrum resources are available under the right conditions will lower broadband costs, increase coverage and boost connectivity. The 2020s will see strong growth in the number of Africans connected to mobile broadband. As 4G and 5G grow together throughout the decade to come, spectrum preparation can drive cost efficiency and promote growth.