Paying taxes is never fun but it’s a part of life. For any nation to operate successfully, collecting taxes is a certain way of making the process of running the country a bit easier. Governments are elected into office by members of a country and they are entrusted with creating policies and putting them in place. These policies should ensure the wellbeing of the country’s citizens. It’s for this reason that paying taxes is a certainty for any working individuals. The tax money that is collected is used for building roads, schools, hospitals or for paying for other governmental services.
In South Africa, the South African Revenue Services (SARS) collects taxes.
The question of how much you need to earn to pay tax is a vital one, because there are various tax thresholds that apply.
More about how much you need to earn to pay tax:
As an employee, your employer is liable for paying tax for you in the form of PAYE.
According to the latest South African tax laws, if you earn in excess of R78 150 annually and you are younger than 65 years of age, you must pay this type of tax.
If above the age of 65 years, earning in excess of R121 000, you’re liable for this taxation, while the threshold of R135 300 qualifies you for income taxation if you are older than75 years.
If you’re earning R10 000 a month, you’re likely to pay R628 in tax every month, which is at a rate of 18%. A R20 000 monthly income means a 26% tax rate, so R2722 will go to SARS. A 31% tax rate applies when you earn in the region of R30 000 per month.
It’s important to contact SARS if at any point you are unsure of your tax status.