GROW YOUR BUSINESS IN SOUTH AFRICA

Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost

​Praxima Services Includes

  • Full Payroll Outsourcing
     

  • Hybrid Payroll Outsource
     

  • International Payment Management
     

  • Local Filing
     

  • Social Security Filing
     

  • Interact with Local Authorities
     

  • Human Resources Management System
     

  • Integration with all Accounting and Third Party

    Software

Benefits of outsourcing to Praxima

Local Tax Compliance

Secure Data Transferring

Responsive Administrators

Increase Productivity

Industry Experts

Running Your Payroll

Focus on Your

Core Business

South African Payroll processed to International Standards

Payroll in South Africa

South Africa makes use of the PAYE system at which income taxes are withheld at source.  Residents are taxed on their worldwide income while non-residents are only taxed on their South-African source income.  

TAX RATES  |  2019 / 2020

 

Taxable income in South African Rand (ZAR)

  • 0 – 195 850:                       18% of taxable income 

  • 195 851 – 305 850:          35 253 + 26% of taxable                                                    income above 195 850

  • 305 851 – 423 300:          63 853 + 31% of taxable                                                     income above 305 850

  • 423 301 – 555 600:          100 263 + 36% of taxable                                                  income above 423 300

  • 555 601 – 708 310:          147 891 + 39% of taxable                                                   income above 555 600

  • 708 311 – 1 500 000:      207 448+ 41% of taxable                                                   income above 708 310

  • 1 500 001 and above:      532 041 + 45% of taxable                                                   income above 1 500 000


 

TAX REBATES  |  2019 / 2020

 

Primary rebate – All individuals               14 220 

Additional age rebates:
Secondary rebate (65 years and older)     7 794
Third rebate (75 years and older)               2 601

STATUTORY FILING  |  2019 / 2020

Income tax year in South Africa runs from 1 March - end of February for individuals.  Married couples are generally taxed separately, however can be taxed jointly on certain community property.  Each year the deadline for filing of tax returns for annual income is confirmed by an official notice.  Tax returns are generally submitted to the South African Revenue Authority electronically and payments are also done electronically.  Penalties are imposed on any non-compliance with respect to tax obligations such as understatement of tax owed and late or non-submissions of returns.

SOCIAL SECURITY  |  2019 / 2020

Both the employer and employee contributes 1% monthly towards South Africa's unemployment insurance.  Contributions are based on a maximum monthly gross remuneration, currently standing at  ZAR 14 872.  The employer is required to deduct the 1% contribution made by the employee from his / her salary every month. 

Tax Residents

An individual will be considered a tax resident if he/she ordinarily resides in the country, is physically present in the country for over 91 days during the current year and the preceding five tax years, and he/she is physically present in the country for more than 915 days in total over the next five years.  

Taxable Income

 

Taxable income comprises gross income plus taxable capital gains, less exempt income and allowable deductions.  Gross income includes any and all remuneration in cash or kind.  Taxpayers may be entitled to foreign tax credit in the event where foreign taxes were paid for income earned from a foreign source and is also taxable in South Africa. 

 

Exempt Income

Subject to certain conditions being met, income received from disability pensions,unemployment insurance fund income, compensation for occupational injuries and diseases, government grants, alimony, income of certain investment funds and more, will be exempted from income tax. 

Your HRMS is Standard 

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Employee Self-service

Payslip and tax certificate retrieval. Updating of personal particulars. Leave request and balance enquiries

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Records

Employee documents folder. Training records. Heath & Safety records. Disiplinary records. Qualifications, resume and hiring records.

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Work Flow

Workflow with different approval levels. Full work flow functionality for leave requests, expense and time-sheets

PAYMENTS, REPORTING & FILING

  • Direct payment into employee bank accounts. Emailed password protected pay slips.

  • Payment of taxes, benefit providers and other creditors.

  • Filing of returns to the authorities.

  • Generation and filing of statutory reports.

  • General ledger and 100's of customisable reports.

Get in Touch

Request a Quote

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Tel: 010 035 1050 (+27)
Int: 678 701 3384 (+1)
E-mail:  jhb@praxima.com

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