For South African residents, South Africa follows a worldwide basis of taxation. That is all income, wherever earned, will be subject to tax. For non-residents only income earned from a South African source will be subject to ordinary income tax. Accordingly, any income earned by non-residents in respect of South African property rentals will be subject to income tax and it is the responsibility of the non-resident to register as a South African taxpayer.
Income earned by natural persons below R32 222 per annum (for persons under the age of 65) and R50,000 (for persons above the age of 65) is free of income tax, whilst all income earned over and above the aforesaid amounts, will be taxed at a marginal rate applicable to that non-resident in accordance with published tax tables. The marginal tax rate is calculated on a sliding scale with a maximum rate of 40% applying to taxable income in excess of R270,000.
Corporate entities are subject to a tax rate of 30% of each Rand of taxable income whilst the equivalent rate for trusts is 40%. Non-resident companies are taxed at a rate of 35% but are exempt from secondary tax on companies ("STC") in respect of dividends paid.
