Let us help you

prepare for the

2023
tax season

A division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
Useful information to get you going
for the 2023 tax season

The tax filing season for 2023 opens 1 July 2023.

During this period, the South African Revenue Service (SARS)

requires you to submit your income tax return. In order to assist
you in completing your tax return, we have compiled answers
to a list of frequently asked questions.

Who is required to submit

an income tax return to SARS?
• All individuals whose income • All individuals whose income • Any natural person who
from one employer is greater is less than R500 000 for the conducted a trade*
than R500 000 for the tax year tax year if: in South Africa
– their source of income
• Any natural resident who had • Any natural resident that
is from more than one
capital gains or capital losses held any funds in foreign
employer
exceeding R40 000 currency or assets outside
– they receive a car allowance of South Africa that have
• All individuals whose interest – they have other sources a combined total value of
earned in SA exceeds the of income more than R250 000 at any
annual exemption limits – they have deductions they stage during a tax year
want to claim (e.g. medical
• Any natural resident that
expenses, retirement
held any rights in a controlled
annuity contributions)
foreign company

PLEASE BE ADVISED

*The term “trade” when used for finding out whether to submit a return means every profession, trade,
business, calling, occupation or venture, including the letting of any property but excluding any employment.

Note: This list is not exhaustive and SARS should be contacted should you need clarity.

The content is provided by First National Bank (a division of FirstRand Bank Limited) (“FNB”). FNB is a member
of the FirstRand Group and an authorised financial services provider and is intended solely as a guide. The
content should not be considered tax, legal or investment advice. Professional tax advisors should be sought
before making use of this content. FNB accepts no responsibility, for any errors, omissions or misstatements.

A division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
 Who needs to register for income tax?
Everyone receiving taxable income above the tax thresholds
is required to register for income tax.

Income tax thresholds and rebates for individuals

Age 64 and below Age 65 to 74 Age 75 and over

Minimum annual income R91 250 R141 250 R157 900

Primary rebate Secondary rebate Tertiary rebate

Rebates for individuals R16 425 R9 000 R2 997

Note: The threshold is applicable for the tax year.

What is an income What is the meaning How do I register for

tax return? of year of assessment? income tax?

This is a declaration of all your A year of assessment for When you register for SARS
income, capital gains and taxpayers covers a period of eFiling for the first time and
losses, and expenses that you 12 months. For individuals and you do not have a tax reference
are required to report and trusts, the start date of the year number, SARS will automatically
declare in terms of the Income of assessment is 1 March and register you and issue a tax
Tax Act No. 58 of 1962 and ends on the 28/29 February of reference number. Note that you
the Tax Administration Act No. the following year. For companies must have a valid South African
28 of 2011. and close corporations, the year ID. Alternatively, you can make
of assessment is the applicable an eBooking appointment with
financial year. SARS. Note that you must have an
appointment first before going to
a SARS branch. The ONLY way to
make an appointment if you are
NOT registered yet, is to call the
SARS Contact Centre on 0800 00
7277 and select option 0 (zero).
A SARS official will book the
appointment on your behalf.

A division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
How do I submit an income tax return?
There are 3 ways you can submit your return

Online via SARS efiling

1 at www.sarsefiling.co.za

Via the SARS eFiling App

2 on your mobile device

Manually by going into a SARS

3 branch and requesting assistance
from a SARS consultant
What are the
The easiest and most efficient way is to submit your return directly consequences
via SARS eFiling or the SARS eFiling App. of not submitting
my income tax
For more information on eFiling, please visit www.www.sarsefiling.co.za
return by the
SARS deadline?

SARS will levy a non-

What supporting compliance penalty for
each month that your
documents do I need? return is outstanding.

• Your banking details • Details of business travel Penalties can range

(if you received a travel from R250 to R16 000
• Your IRP5/IT3(a)
allowance or want to per month.
certificate(s) PLUS any
claim against a fringe
investment income
benefit for an employer- SARS may appoint
certificate(s) [IT3(b)/
provided vehicle) your bank or employer
IT3(c)/IT3(s)]
as an agent to deduct
• Any documentation
• Details of medical the outstanding
relating to any other
expenses paid by you penalties from your
income received or
and not covered by your salary or bank account.
accrued
medical scheme
• Any applicable financial
• Completed confirmation of
statements, e.g. business
diagnosis of disability form
income
• Information relating
• Any other relevant material
to retirement annuity
relating to income you
contributions
received or deductions
you want to claim

A division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
Income tax rates for the 2022/2023 tax year

Taxable income Rate of tax

For individuals and special trusts

R0 – R226 000 18% of taxable income

R226 001 – R353 100 R40 680 + 26% of taxable income above R226 000

R353 101 – R488 700 R73 726 + 31% of taxable income above R353 100

R488 701– R641 400 R115 762 + 36% of taxable income above R488 700

R641 401 – R817 600 R170 734 + 39% of taxable income above R641 400

R817 601 – R1 731 600 R239 452 + 41% of taxable income above R817 600

R1 731 601 and above R614 192 + 45% of taxable income above R1 731 600

For trusts other than special trusts

- 45%

For small business corporations

R0 – R91 250 0% of taxable income

R91 251 – R365 000 7% of taxable income above R91 250

R365 001 – R550 000 R19 163 + 21% of taxable income above R365 000

R550 001 and above R58 013 + 28% of the amount above R550 000

For companies

- Years of assessment ending on or after 31 March 2023 - 27%

- Years of assessment ending up until 31 March 2022 - 28%

Transfer duty rates for the 2022/2023 tax year

Value of property Transfer duty rate

R0 – R1 000 000 0%

R1 000 001 – R1 375 000 3% on value above R1 000 000

R1 375 001 – R1 925 000 R11 250 + 6% on value above R1 375 000

R1 925 001 – R2 475 000 R44 250 + 8% on the value above R1 925 000

R2 475 001 – R11 000 000 R88 250 + 11% on the value above R2 475 000

R11 000 001 and above R1 026 000 + 13% on the value above R11 000 000

A division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
Taxation of capital gains

Capital gains, on the disposal of assets that were held with a capital intention,
are included in taxable income. Events that usually trigger a disposal include
a donation, exchange, loss, death or emigration.

Some specific exclusions are:

• R2 million gain/loss on the disposal of • Small business exclusion of capital gains

a primary residence for individuals (at least 55 years of age)
of R1.8 million when a small business with
• Most personal use assets
a market value not exceeding R10 million
• Lump sum from retirement benefits is disposed of

• Payments in respect of original long-term • The exclusion granted to individuals

insurance policies is R300 000 for the year of death, instead
of the annual exclusion
• Annual exclusion of R40 000 capital
gain or capital loss is granted to individuals
and special trusts

Tax rates applicable on capital gains

Inclusion rate Statutory rates Effective rate of tax

Individual and special trust 40% 0% - 45% 0% - 18%

Companies 80% 28% 22.4%

Other trusts 80% 45% 36%

A division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
How does section 24J of the Income
Tax Act No. 58 of 1962 impact me?

Section 24J requires us to report the credit interest you accrued on your account during the tax period. It has
the effect of spreading the interest over the period of the investment (i.e. if you invested for five years, the
accrued interest is reported over the multiple tax years you are invested as opposed to only being reported in
the year of maturity when you receive the interest). The amount of interest calculated in terms of section 24J is
deemed to have accrued during the tax year, regardless of the actual amount of interest received.

What are
the interest Age 64 and below Age 65 and above
exemptions R23 800 R34 500
available to
individuals?

Will section 24J of the Income Tax Act No. 58 of 1962 impact me?

• If you receive interest income and you are not • If you receive interest income and you are
a company, then section 24J will apply if you have a company, then section 24J will apply for
a fixed-term investment which is greater than all your notice and fixed-term investments
12 months, where interest is paid at maturity regardless of the term

A division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
What do I need to know
about tax-free investments?
If the annual or lifetime contribution
The annual contribution is limited
is exceeded, a penalty of 40% will be
to R36 000 per person (per tax year)
charged on the excess amount at the
time of assessment

All returns are tax free, which includes Any person can transfer their tax-free
interest, dividends and gains investment from one product provider
to another1

The lifetime contribution is limited

to R500 000 per person

Types of documents available

• Your IT3(b) certificate reports all interest, • Your dividend statement reports the gross and
foreign dividends, real estate investment trusts net amount you received in dividends for the tax
dividends and/or profit share paid or accrued to year as well as the applicable dividend tax amount
yourself, where applicable, over the course of the that was withheld and paid over to SARS
tax year
• Your account schedule/statement discloses
• Your IT3(c) certificate reports gains and losses all transactions that have taken place on your
for local and offshore investments account during the tax year

• Your IT3(s) certificate reports all contributions,

withdrawals, interest, dividends, transfers
in/out and/or gains and losses on your tax-free
investment(s) for the tax year

1
Effective 1 March 2018.
Annual and lifetime limits apply to all tax-free investments you own across all service providers.

How do I obtain a copy of my tax certificate?

1 Log in to fnb.co.za
2 Click on the ‘My Bank Accounts’ Tab

From here you can download

3 4
Click on ‘Tax Certificates’
or email a copy of your
under the Statements heading
IT3 certificate to yourself

A division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
For more information
For assistance with your tax submission,
please contact SARS directly

Call 0800 007 277 Visit www.sars.gov.za

If you require assistance with your FNB tax certificate,

please contact us via

Secure Chat® on the FNB App

info@fnb.co.za

PLEASE NOTE

The contents in this document are provided as a guide only and should not be considered as tax, legal or
investment advice. Professional tax advisors should be sought before making use of this content. FNB accepts
no responsibility for any errors, omissions or misstatements.

A division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).