South Africa
Corporate Tax Guide
Time of Update: 4/06/2026
South Africa's tax system encompasses a range of taxes, with corporate income tax (CIT) levied at a rate of 27% for companies, while personal income tax (PIT) can reach up to 45% for individuals. The country also has a value-added tax (VAT) system, with a standard rate of 15% applied to most goods and services. Additionally, withholding tax (WHT) is imposed on dividends at 20%, with varying rates for interest and royalties based on residency status. Capital gains tax (CGT) is charged at 21.6% for corporations and 18% for individuals on net gains from asset disposals. South Africa's tax regulations are designed to ensure a comprehensive system that covers both businesses and individuals, with specific rules for tax returns and payments.
South Africa Tax Brief
Time of Update 4/06/2026
South Africa Corporate Income Tax (CIT)
General CIT Rate:
27%
CIT Return Due Date:
Within 12 months from the end of the tax year
CIT Payment Due Date:
Within 6 months after the company's tax year-end
CIT Estimated Payment Due Date:
Twice a year: first payment within 6 months of year-start, second before year-end
South Africa Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
20/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
20/15/15
South Africa Value-Added Tax (VAT)
General VAT Rate:
15
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South Africa Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
Corporations 21.6% effective; individuals 18% effective
South Africa Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
24.37%
Composite Effective Marginal Tax Rate:
12.99%
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TKEG Expat ™ South Africa Corporate Tax Guide
1.
Corporate Income Tax (CIT) in South Africa
In South Africa, the corporate income tax (CIT) is levied at a rate of 27%. Companies are required to submit their CIT returns within one year from the end of their tax year. The final payment is due within six months after the company's tax year-end, and estimated CIT payments are made twice a year: the first payment is due during the first six months of the company’s tax year, and the second payment must be made before the end of the year.
2.
Personal Income Tax (PIT) in South Africa
Personal income tax (PIT) rates in South Africa go up to 45%. The specific return due date for PIT is determined each year by a government notice, varying according to the taxpayer’s circumstances. Provisional taxpayers are required to make their final payment within six months after the end of the tax year. Additionally, estimated payments are made in two installments, at the end of August and February, respectively.
3.
Withholding Tax (WHT) in South Africa
Withholding tax (WHT) in South Africa is applied at various rates depending on residency status. For residents, dividends are taxed at 20%, while interest and royalties are subject to 0% tax. Non-residents face WHT rates of 20% on dividends, 15% on interest, and 15% on royalties.
4.
Capital Gains Tax (CGT) in South Africa
Capital gains tax (CGT) in South Africa is levied at different rates for corporations and individuals. For corporations, the headline CGT rate is 21.6%, while individuals are taxed at 18% on capital gains. This tax is charged on the net gains made from the disposal of assets.
5.
Value-Added Tax (VAT) in South Africa
South Africa imposes VAT on the sale of goods and services, with the standard rate being 15%. VAT applies to most business transactions carried out domestically, including those involving imported goods. Businesses must register for VAT if their annual turnover exceeds ZAR 1 million. Non-resident suppliers of electronic services must also register once their taxable supplies exceed this threshold. A zero rate applies to certain exports and select supplies, while the standard rate applies to most other goods and services.
