South Africa's financial year ends on the 31st March.
A financial year is the accounting period that consists of 52 uninterrupted weeks or 12 uninterrupted months. At the end of this period the account books will be closed, financial reports will be prepared for any filing and profit or loss will be computed.
The tax system in South Africa is residence based. This means that the worldwide income of residents - subject to some exclusions - will be taxed, irrespective of wherever the income had been earned. The income of non-residents is, however, taxed from a South African source. The foreign taxes will be credited against South African tax that is payable on the foreign income.
Most of the income of the state comes from company and personal income tax. About one third of the total revenue from the taxes of the national government comes from the indirect taxes. This is primarily VAT or Value Added Tax.
VAT is charged on all services and goods subject to some adjustments, deductions, exceptions and exemptions. This is the South African government's second largest source of revenue. Value Added Tax is also charged on importation of services and goods into South Africa. VAT is levied at 14%. Certain supplies are exempt such as fresh fruit and vegetables and bread.
A government cannot do its job without the revenues from taxes. The South African government needs South African tax Rands for funding economic and social programs and to also provide public services and goods such as hospitals, universities, schools and clinics and also roads, security and defense. Every year the Finance Minister presents his Budget, which outlines the total government expenditure for the next financial year, including how this expenditure will be financed.
Other forms of VAT that are levied include excise duty, transfer duty, estate duty, stamp duty, air passenger taxes, donations tax, retirement funds taxes and gaming taxes etc.
A financial year is the accounting period that consists of 52 uninterrupted weeks or 12 uninterrupted months. At the end of this period the account books will be closed, financial reports will be prepared for any filing and profit or loss will be computed.
The tax system in South Africa is residence based. This means that the worldwide income of residents - subject to some exclusions - will be taxed, irrespective of wherever the income had been earned. The income of non-residents is, however, taxed from a South African source. The foreign taxes will be credited against South African tax that is payable on the foreign income.
Most of the income of the state comes from company and personal income tax. About one third of the total revenue from the taxes of the national government comes from the indirect taxes. This is primarily VAT or Value Added Tax.
VAT is charged on all services and goods subject to some adjustments, deductions, exceptions and exemptions. This is the South African government's second largest source of revenue. Value Added Tax is also charged on importation of services and goods into South Africa. VAT is levied at 14%. Certain supplies are exempt such as fresh fruit and vegetables and bread.
A government cannot do its job without the revenues from taxes. The South African government needs South African tax Rands for funding economic and social programs and to also provide public services and goods such as hospitals, universities, schools and clinics and also roads, security and defense. Every year the Finance Minister presents his Budget, which outlines the total government expenditure for the next financial year, including how this expenditure will be financed.
Other forms of VAT that are levied include excise duty, transfer duty, estate duty, stamp duty, air passenger taxes, donations tax, retirement funds taxes and gaming taxes etc.
