Individual Income Tax has been Simplified This Season

Tax season is once again upon us and taxpayers are able to file their tax returns as of the 1st of July 2022. As is the case each year, the South African Revenue Service (SARS) has implemented a number of changes that will affect taxpayers. Calculating and paying your individual income tax can be a complicated undertaking, and many feel overwhelmed by the regulations surrounding taxes. It is always best to seek the advice of a qualified accountant if you are unsure about any tax-related issues, as this is the best way to ensure you remain compliant with any regulations. Tax season will never be a cause for concern as long as you are well prepared.

SARS Tax Auto-Assessments

In an effort to simplify the process for South Africans, SARS has implemented an auto-assessment feature for non-provisional taxpayers. A personal income tax assessment is automatically generated from the information that SARS receives from third parties such as employers, banks, trusts and medical schemes. After SARS is satisfied that its data is sufficient and that the calculations are correct, it issues the tax assessment to the individual via eFiling or the SARS MobiApp. Taxpayers will also be notified via SMS or email to inform them that the assessment has been published.

The taxpayer should analyse the auto-assessment of their personal income tax in order to confirm that all the information is correct. Taxpayers do not need to accept the assessment if they agree with all the information. However, if they disagree with the data they will be required to submit their tax returns along with the missing details. So be sure to log into your eFiling account or the SARS MobiApp as soon as you receive a notification to view your individual income tax assessment online.

Tax Thresholds for Individuals

An individual is only liable for personal income tax if they receive a taxable income that exceeds the tax threshold amount. For the 2023 year of assessment, which runs from the 1st of March 2022 to the 28th of February 2023, the following tax threshold applies:

R91 250 if you are under the age of 65

R141 250 if you are 65 and over, but under 75 years old

R157 900 for taxpayers aged 75 years and older

Tax Rates for Individuals

The tax rates for individuals in the 2023 year of assessment are as follows:

​Taxable income	​ Rates of Tax
R1 – R226 000	18% of total taxable income
R226 001 – R353 100	R40 680 + 26% of taxable income over R226 000
R353 101 – R488 700	R73 726 + 31% of taxable income over R353 100
R488 701 – R641 400	R115 762 + 36% of taxable income over R488 700
R641 401 – R817 600	R170 734 + 39% of taxable income over R641 400
R817 601 – R1 731 600	R239 452 + 41% of taxable income over R817 600
R1 731 601 and over	R614 192 + 45% of taxable income over R1 731 600

Avoid the stress this tax season by trusting professionals with your personal income taxes! At Booysen Accountants, we are dedicated to keeping all of our clients compliant with all of our country’s tax regulations. Contact us today to book an appointment with one of our qualified team members. Feel free to browse our website for more information on the services we provide.