Income tax is the government’s main source of income and is levied in terms of the Income Tax Act (No 58 of 1962).
Income tax is levied on taxpayer’s income. Tax is levied on your taxable income that consists of your gross income after taking off deductions that are allowed by the Act.
Companies and CC’s are taxed at a rate of 28%. Individual tax rates are between 18% and 40%. Trusts pay tax at 40%,.
Small-business corporations (those with an annual turnover of less than R14- million) are taxed according to a sliding tax rate. This scale is adjusted every year.
The scale for taxing small-business corporations can be found at the following link: http://www.sars.gov.za/ClientSegments/Businesses/SmallBusinesses/Pages/default.aspx