R742.6bn tax revenue collected was R3.9bn higher than the revised estimate set in the February 2012 Budget.
eFiling accounted for 64.6% of the value of all payments in 2011/12, (vs just 30.8% in 2007/08).
Of the 4 726 730 individual taxpayers liable to submit returns, 4 522 692 (95.7%) have been assessed as at the end of July 2012.
10% of individuals earn 37% of taxable income being liable for 57% personal income tax collected in South Africa!. 40.2% of individual taxpayers are registered in Gauteng.
Over 71% of individual taxpayers were registered in Gauteng, Western Cape and KwaZulu-Natal and are responsible for close to 80% of the total tax assessed.
The average tax rate for individuals is 21%.
27% are employed in the financing, insurance, real estate & business services sector.
There are 2 263 individual taxpayers who earn more than R5m a year (in taxable income)
221 large companies with taxable income in excess of R200 million were liable for 50% of the company tax assessed.
Only a third of assessed companies declared taxable Income, rest either zero or losses
Economists have finally woken up to the fact that taxpayers get little to nothing for what they pay in taxes and duties, A recent Grant Thorton study shows the following alarming results:
- Offically there are 10.97m taxpayers with ONLY 5.7m individuals carrying 97% of the tax burden of the 50m poplulation!
- 2.75m people carry 64% of personal taxes and more than 60% of the TOTAL tax burden.
- Our highest tax bracket of 29% - 40% is significantly higher than the global average of approx 29% and to make makes far worse, they get something at least for their taxes.
- Individuals contributed R674.2 bn to State last year, giving politicians carte blanche to piss it against the wall faster than SARS can collect it, even with their mafia type tactics.
- For every R1 spent on corporate income taxes an ADDITIONAL 38c goes to other business taxes!
- Taxes include income tax, provisional tax, paye, sdl, UIF, OH&S, annual return levies, air passenger tax, donations tax, estate duty, CGT, transfer duty, securities transfer tax, VAT, vehcile ad valorem tax, carbon emission duties, airport taxes, incandescent light bulb tax (yes there is one!), environmental electricity levy, excise duties, plastic bag levy, TV licences, drivers licences, vehcile registration, general fuel levy, customs & excise, road accident fund, tolls, municipal rates, dividends tax - with new gambling and emission taxes to follow.
South Africa is one of the largest welfare states in the world! It provides social security to 15 million people or 30% of the countrys 50 million population.
- Tax from individuals for 2010/11 was budgeted at R224bn or 35% out of the total R648bn
- 45% of this comes from 150 000 taxpayers paying supertax (>R556000 pa)
- 55% comes from 2.1m taxpayers
- 64% comes from 2.7m taxpayers
- R164bn comes from vat, paid for by the consumer!
- R45bn from customs and excises
- R9bn from transfer duty
Expressed differently of the total R648bn collected , corporates pay a mere R137bn with a further R17bn in STC.
Count yourself lucky if your compliance costs are less than these suggested by SARS: Alongside corporate income tax and VAT, personal income tax is one of the three main tax instruments and provides the basis for the progressive structure of South Africa’s tax system. SARS estimated that:
- 12.5% of registered individual taxpayers with an annual taxable income between R250 001 and R500 000 account for 29 per cent of personal income tax revenues, and
- 5.5% of registered individual taxpayers with an annual taxable income above R500 000 will account for 38 per cent of personal income tax revenues during 2009/10.
Sample tax statistics covering our indivdiual client tax base:
Individual Tax Rates:
- Maximum Tax Rate 41%
- Average time to receive Return critical information from clients = LATE
- Average time spent per submission = 90 minutes
- Average telecons per submission = 2
- Average number emails to agree amounts = 4
- Average mouse clicks to e-file = 50+
- Average on time filing = 93%
- Average number emails received & responded to per day = 70
- Average number of faxes received per day = 7
- Average number of calls per day = 9
- Average response time to complex telephone queries = 12-36 hours
- Average number of unexpected walk-ins per day = 2