Other about Tax

2. Deduct exempt income

“Gross income” minus the exemptions set out in Section 10 is equal to “income”. A taxpayer's "income" is therefore calculated by deducting from the taxpayer’s gross income all amounts that are exempt from tax.

3. Deduct allowable deductions

The next step is to subtract certain allowable deductions from "income", then add taxable gains and then subtract the other deductions, which leaves "taxable income".

Deductions include:

• general deductions that qualify in terms of the general deductions formula contained in Sections 11(a ) and 23(f) and (g);
• specific deductions contained in Sections 11(c) to (x);
• allowances and other special deductions and rulings contained in Sections 11bis to 24L.

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4. Multiply 'taxable income' by tax rate

Once taxable income has been determined, the applicable tax rate is applied to determine tax liability. Individuals are considered "persons other than companies" and are taxed on a sliding scale.

5. Subtract rebates

The taxable income multiplied by the tax rate will leave a certain amount, from which must be subtracted:

• rebates for natural persons set out in Section 6; and
• any applicable rebates for foreign taxes allowed by double-taxation agreements.