South African tax education
Main Types of Tax in South Africa
South African taxpayers often hear many tax names at once. This guide explains the main types in plain English and points you to the right next guide.
Last updated: 19 May 2026
- Match every tax decision to the correct tax year and source documents.
- Check SARS pre-populated data against your own records before filing.
- Get advice where cross-border income, disputes, business income, or material claims are involved.
Quick comparison
| Tax type | What it applies to | Who usually deals with it |
|---|---|---|
| Income tax | Taxable income | Individuals, companies, trusts |
| PAYE | Employee remuneration | Employers and employees |
| Provisional tax | Estimated taxable income during the year | Freelancers, business owners, some investors |
| VAT | Taxable supplies of goods and services | Registered VAT vendors |
| Capital gains tax | Taxable capital gains | Individuals, companies, trusts |
| Donations tax | Certain donations | Donors |
| UIF and SDL | Payroll obligations | Employers and employees, where applicable |
Income tax
Income tax is charged on taxable income. For individuals this can include salary, business income, freelance income, rental income, interest, and certain foreign income.
PAYE and provisional tax
PAYE is withheld by employers from employee remuneration. Provisional tax is a payment mechanism for taxpayers who earn income that is not fully taxed at source, such as freelance, business, or rental income.
VAT
VAT is charged by registered vendors on taxable supplies. South Africa's standard VAT rate is 15%, while some supplies may be zero-rated or exempt. Registration depends on taxable supplies and the current thresholds.
Other taxes to know
Capital gains tax can apply when assets are disposed of. Donations tax can apply to certain donations. Payroll taxes and contributions such as UIF and SDL may apply when a business has employees.
FAQ
Is PAYE a separate tax from income tax?
PAYE is employee tax withheld during the year and credited against income tax.
Is VAT charged on all sales?
No. VAT depends on whether the person is a vendor and whether the supply is taxable, zero-rated, or exempt.
Do freelancers pay PAYE?
Freelancers often do not have PAYE withheld by clients and may need to manage provisional tax instead.
Next steps
- Collect the certificates, invoices, statements, and calculations behind the issue.
- Compare the page guidance to the latest SARS source linked below.
- Update your return, estimate, or filing checklist only after the figures agree to source documents.
Official checks
Use these SARS pages to confirm the latest position before filing, registering, or changing a tax position.
Source and disclaimer
This site provides general educational information for South African taxpayers. It is not tax, legal, accounting, or financial advice. Tax rules and SARS processes can change, so verify current requirements with SARS or a qualified professional before acting.