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
Social Security Filing
Interact with Local Authorities
Human Resources Management System
Integration with all Accounting and Third Party
Benefits of outsourcing to Praxima
Local Tax Compliance
Secure Data Transferring
Running Your Payroll
Focus on Your
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 | 2022
Taxable income in South African Rand (ZAR)
ZAR TAX RATE
0 – 226,000 18%
226,001 – 353,100 26%
353,100 – 488 700 31%
488 701 – 641,400 36%
641,401 – 817,600 39%
817,600 – 1,731,600 41%
1,731,601 and above 45%
TAX REBATES | 2022
Tax Rebates ZAR
Primary rebate - All individuals 16,425
Secondary rebate - (65 years +) 9,000
Third rebate - (75 years +) 2,997
STATUTORY FILING | 2022
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.
UNEMPLOYMENT INSURANCE FUND | 2022
Both the employer and employee contributes 1% monthly towards South Africa's Unemployment Insurance Fund (UIF). 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.
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 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.
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
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.