Their main aim is to ensure that they enhance the economy and social development that will benefit all citizens.
What are the main functions of SARS?
- To collect and administer all taxes and levies
- Facilitate trade
- Advise the minister of finance with all tax and revenue information
- Ensures compliance with tax and customs regulations
- Protect the economy against any illegal importation and exportation of goods
- Provide a quality service to the public
In South Africa there are many different types of taxes that citizens are required to pay. Without receiving revenue from tax, the government will not be able to fulfill the needs of the economy. The revenue received from tax is to help sustain the social and economic needs and provide public goods and services to society.
Here are a list of few taxes that citizens are required to pay:
- Capital gains
- Estate duty
- Income tax
- Pay as you earn (PAYE)
- Skills development levy (SDL)
- Transfer duty
- Unemployment insurance fund (UIF)
- Value added tax (VAT)
Who is liable to pay tax?
South Africa works on a residency-based taxation system. This means that South African citizens are taxed on worldwide income and non-residents are only taxed on locally sourced income. Any individual that is liable for income tax must register as a taxpayer at SARS. It is by law that you must register as a taxpayer if you are a Director of a company or a member of a close corporation, receiving an income more than R60 000, a sole proprietor and PAYE deducted from your earnings.
For more information on tax, you can contact the toll free number on 0800 00 7277 or visit their website on www.sars.gov.za/
