Tax Collections Up 9.6% in S.Africa

October 22, 2013 Taxation In AfricaTaxation in South Africa

South Africa Targets Richest TaxpayersCAPE TOWN – The use of new technology and continued efforts to improve efficiency has helped South Africa raise tax revenues and to decrease the cost of collecting taxes.

On October 21st the South African Revenue Service (SARS) released the latest annual Tax Statistics report, showing that over the course of the 2012 fiscal year tax authorities in the country collected a total of ZAR 813.8 billion in taxes, approximately 9.6 percent more than in the previous fiscal year.

From the total taxes collected, nearly 34 percent came from personal income taxes, 26.4 percent came from value added tax, 19.8 percent came from corporate income tax, and the was comprised of government levies and excise duties.

According to SARS, the administrative cost of revenue collection has fallen from 1.11 percent in 2011 to 1.07 percent in the 2012 fiscal year.
The report also indicated that the SARS’s push towards electronic filing and online technology has proven to be financial and economically effective, with only 1.8 percent of all taxpayers still choosing to personally visit a tax office to complete their filing.

According to the report three approximately 15 million registered individual taxpayers, but income taxes were only paid by about 6 million, as the remaining part of the population are unemployed, or their incomes are below the tax-free threshold, and also South Africa now has more than 2.2 million registered companies, with 742 thousand of them being liable to submit tax returns.

Photo by Lorenia