The deductions that you can utilise are Retirement Annuities, Donations to a Public Benefit Organisation (PBO) and Medical Expenses. Your taxable income is your profit from your business less any taxable deductions that you have which are awarded to you as a Sole Trader. These different tax rates are covered below in more detail:Īs you can see, the higher your taxable income, the more tax you would pay. These tax rates must be used on your final taxable income after deductions.
Tax Brackets 2020- 2021 How do I use the tax brackets for my small business correctly?ĭepending on whether you are operating as a Sole Proprietor, a Company / Close Corporation or a qualifying Small Business Corporation or a Trust you would need to look at different tax brackets: Understanding the tax tables are important when you need to make certain financial decisions such as selling a property, donating, or investing. Understanding Tax Tables are crucially important for individuals and businesses alike as they need to be aware of the amount of taxes payable and when they are required to file tax returns. Why do I need to know about the tax tables? Tax tables are used by individuals, companies, small business corporations and trusts for both standard income and capital gains in South Africa. The tax rate in the relevant tables may be shown as an amount, a percentage rate, or a combination of both. A tax table is a chart that displays the amount of tax due based on income received.