Tax Revenues Up by Billions in S. Africa
October 23, 2012 Taxation in South Africa
PRETORIA – Tax revenues in South Africa are on the rise, having exceeded the government’s expectations for the year.
On October 22nd the South African Revenue Service released a new analytic report on tax collections in the country for the 2011 fiscal year, showing that tax revenues for the period reached a total of ZAR 742.6 billion, exceeding the government’s own forecasts by ZAR 4 billion, and growing by 10 percent compared to the previous year.
According to the new report, the most significant portion of the government’s tax collections was personal income taxes, accounting for over ZAR 250 billion of all revenues gathered.
During the 2011 fiscal year approximately 13.7 million individuals were registered with SARS, but only 4.7 million of the taxpayers were required to make any payments, as their salaries had exceeded the tax free thresholds.
The SARS also collected ZAR 152 billion of corporate income taxes from the 792 thousand businesses in the country which had declared any incomes, out of the 2 million companies currently registered in South Africa.
Over the course of the year SARS received ZAR 218 billion in VAT payments and issued ZAR 130 billion of VAT refunds to the 438 thousand active businesses registered for VAT.
Approximately ZAR 34 billion of customs duties were collected from the country’s 247 thousand registered importers.
Commenting on the results highlighted in the report Randall Carolissen, group executive of tax analysis at SARS, said that one of the reasons that tax collections in South Africa had risen was the Service’s concentrated efforts to improve compliance by easing the process of submitting tax returns.
Photo by 401(K) 2012