TAXABLE INCOME
6 February 2017 By PDSNETYour taxable income is your total income for the tax year less whatever expenses you have incurred in generating that income. Once you have calculated your taxable income you can subtract any rebates which you may be entitled to. Your taxable income is then taxed according to the tax tables. The tax tables for individuals can be viewed at: https://www.sars.gov.za/Tax-Rates/Income-Tax/Pages/Rates%20of%20Tax%20for%20Individuals.aspx. If you are considering the tax paid by a company listed on the JSE, then you should bear in mind that rate of company tax in South Africa is 28%. If the company you are looking at is not paying that percentage of its pre-tax profit then it is probably because they are taking advantage of the initial or investment allowances in the Income Tax Act. These allowances enable a company to expense an asset more quickly than usual. This can result in it temporarily paying a much lower rate of tax - but you should be aware that this situation is temporary and in future years it will have to revert to paying 28%.
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