Income Tax 2023

Gautax looks at the income tax season for 2023 and shares everything you need to know in one place

Must I pay income tax?

For the 2023 year of assessment
(1 March 2022 – 28 February 2023)

You are liable to pay income tax if you earn more than:

  • R 91 250 if you are younger than 65 years.
  • R 141 250 if you are 65 years of age to below 75 years.
  • R 157 900 if you are aged 75 years and older.

How do I pay income tax?

Each month the company you work for deducts Tax from your salary.

On your payslip it will reflect as PAYE, then by the 7th of the next month they pay the amount deduced from your salary over to SARS.

Need help with your Tax?

All members of our team are available to meet and answer your questions and assist as they can.

What is a tax return?

An income tax return is a return that will be submitted once a year to SARS to declare all the income you received in the year less allowable deductions.

On that total income, SARS calculates the amount of tax you should have paid and then deducts the amount you did pay and the net effect will then be your refund or pay in at the end.

Once you have submitted the return and all your returns are up to date you will be tax complaint in South Africa.

Do I need to submit a tax return to SARS?

If you fit any of the below criteria you are required by SARS to submit a tax return within the allowed time frame of the tax season

Do any of the following apply to you for the tax year 1 March 2022 to 28
February 2023?

  • Did you conduct any trade* in South Africa?
  • If you are a South African tax resident, did you conduct any trade or employment outside South Africa?
  • Did you receive an allowance such as a travel, subsistence, or office bearer allowance?  Check your IRP5/IT3(a) if unsure.
  • Did you hold any funds in foreign currency or assets outside South Africa with a  combined total value of more than R250 000 at any stage during the tax year?
  • Did you have Capital Gains or Capital Losses exceeding R40 000?
  • Was any income or a Capital Gain from funds in foreign currency or assets outside the Republic attributed to you?
  • Do you hold any participation rights in a Controlled Foreign Company?
  • Did you receive an Income Tax Return or were you asked to submit an Income Tax Return for the tax year?
  • If you are a South African tax resident with a micro business, did you have a
    taxable turnover for turnover tax?

When must tax return be submitted?

To avoid penalties it is very important that your tax return is submitted within these dates:

7 July 2023 to 23 October 2023 for:

7 July 2023 to 24 January 2024 for:

Need help with your Tax?

All members of our team are available to meet and answer your questions and assist as they can.

What are the tax return rates for the 2023 tax year?

Tax rates are the values that are payable to SARS by law. Here are the tax rates based on income earned during the 2023 tax year. 

Taxable income (R) ​Rates of tax (R)
0 - 226 000
18% of each R1
226 001 - 353 100
R40 680 + 26% of the amount above R226 000
353 101 - 488 700
R73 726 + 31% of the amount above R353 100
488 701 - 641 400
R115 762 + 36% of the amount above R488 700
641 401 - 817 600
R170 734 + 39% of the amount above R641 400
817 601 - 1 731 600
R239 452 + 41% of the amount above R817 600
1 731 601 and above
R614 192 + 45% of the amount above R1 731 600

Can I get money back from my tax return submission?

Depending on your monthly contributions and expenses, there are a few ways that
your tax payable can be reduced and therefore money may be paid back to you from
SARS. We can assist you on claiming all expenses that are legally allowed

Rebates

Persons under 65 – R 16,425
Increased by R 711

Persons over 65 – 75 – R 25,425
Increased by R 1 098

Persons over 75 – R 28,422
Increased by R 1 224

Tax Thresholds

Persons under 65 – R 91,250
Increased by R 3 950

Persons over 65 – 75 – R 141,250
Increased by R 6 100

Persons over 75 – R 157,900
Increased by R 6 800

Local Interest Exemption

Persons under 65 – R 23,800
Same

Persons over 65 – R 34,500
Same

Subsistence – when out of town in SA

Meals – R 493 per day tax free
Incidental – R 152 per day tax free

Medical Aid Tax Credits per beneficiary

First two beneficiaries – R 347 per beneficiary per month
Third and more – R 234 per beneficiary per month

Business Travel reimbursement – Tax free

 

Prescribed rate per kilometer

The proscribed rate per kilometer used for reimbursed travel allowance for 2022/2023 has increased from R 3.82 to R4.18

Travel Allowance

Travel allowance still taxable at 80%

Logbook compulsory (proof of value of vehicle)- download Gautax logbook

Auto-Assessment Process for 2022/2023

Auto-Assessments will be issued from 1 July 2023 to 7 July 2023 at 20:00.
If taxpayers and/or practitioners are not in agreement with the estimated assessment, they will have until 23 October 2023 to file an amended return. Auto Assessments issued after this date will have a period of 40 working days in which an amended return must be filed.

More information can be found here

Taxpayers are reminded to ensure that they meet the required deadlines as the correction of returns post the deadlines are extremely difficult and time consuming.

Gautax Pro Tip:

Auto registration for Personal Income
When you register for SARS eFiling for the first time and you do not yet have a personal income tax number, SARS will automatically register you and issue a tax reference number.

Gautax will take care of it all

Sit back relax and let us handle your personal income tax return submissions for you. We will follow best practices to get you, our client the best possible result. That is keeping you up to date with SARS laws and possibly more returned to your pocket than you thought possible. 

2 Simple Steps

Step 1

Call us on +27 (0)11 454 2099 or complete our online application form.

Step 2

Get the following relevant documents ready to send to us. Then sit back and relax

  • Copies of all IRP5’s/IT3(a) – excluding ones prepared via Gautax monthly payroll services.
  • IT3(b)/IT3(c) for interest and Capital Gains Tax Income. ( all Bank accounts and Investments)
  • Retirement Annuity Certificates.
  • Medical Aid Tax Certificates.
  • Details of medical expenses paid by you and not covered by your medical scheme
  • Foreign Dividends and Interest.
  • Completed confirmation of diagnosis of disability
  • Did you sell, buy or rent out any property? Then we need all the relevant info.
  • Logbook with the vehicle details (a logbook is a mandatory requirement if you receive a travel allowance)
  • Commission/Contractor summary of all expenses incurred in the production of Income
  • Sole Trader Income and expenses if trading as a business.
  • Home-Office Claims
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