South Africa, which became a republic in 1961 and transitioned to a constitutional democracy in 1994, is a middle-income, emerging market with an abundant supply of natural resources, such as gold, platinum, and diamonds. It has well-developed financial, legal, communications, energy, and transport sectors. As of March 2019, South Africa's stock exchange was the 16th largest in the world and the largest in Africa by market capitalisation. Its currency is the rand (ZAR). South Africa has 11 official languages, including English, and three capitals: Pretoria (administrative), Bloemfontein (judicial), and Cape Town (legislative).
South Africa has a modern infrastructure supporting an efficient distribution of goods to major urban centres throughout the region.
Following a substantial slowdown in economic growth resulting from the global financial crisis of 2007/08 (South Africa experienced negative growth of nearly 2% in 2009), the South African economy experienced a muted recovery, with gross domestic product (GDP) growth peaking at 2.2% in 2013. Subsequent to 2013, growth again slowed (with GDP growth of only 1.5%, 1.3%, and 0.3% in 2014, 2015, and 2016, respectively). Although there was a modest improvement in domestic growth to 1.3% in 2017, growth for 2018 and 2019 was again subdued at 0.8% and 0.2%, respectively. In March 2020, the South African Reserve Bank (or the 'SARB', South Africa’s central bank) forecast growth for 2020 of 0.2%. This forecast has, however, as of November 2020, been revised downwards largely due to the effects of the COVID-19 pandemic, to a contraction of -8%. The SARB has, however, forecast a rebound in growth of 3.5% and 2.4% in 2021 and 2022, respectively.
The Monetary Policy Committee of the SARB has a targeted inflation band of 3% to 6%. In November 2020, the year-on-year inflation rate (as measured by the consumer price index [CPI] for all urban areas) measured 3.2%. As of November 2020, the SARB expected inflation to remain within the inflation target range of 3% to 6%, averaging 3.2% in 2020, 3.9% in 2021, and 4.4% 2022.
PwC South Africa provides in-depth industry experience in a wide spectrum of market sectors, including the following:
- Banking and capital markets.
- Energy, utilities, and mining.
- Engineering and construction.
- Entertainment and media.
- Financial services.
- Forest, paper, and packaging.
- Government and public services.
- Hospitality and leisure.
- Industrial manufacturing.
- Retail and consumer.
- Transportation and logistics.
PwC South Africa's experienced team of advisers can assist with managing tax risk and controlling and minimising the tax burden by providing innovative and practical tax and business solutions in the areas of corporate, international, and indirect taxes; mergers and acquisitions; compliance; transfer pricing; and human resource services.
In addition, PwC South Africa has an Africa Tax Desk, which, amongst other services, provides the following assistance:
- The provision of quick responses to preliminary and generic questions that companies would like answered when considering investment in Africa.
- The facilitation of investments and business operations by providing access to the right contacts for tax (and legal) advisory services to investors in Africa.
- Coordination between companies investing into Africa and respective PwC offices in other countries.
|Corporate income tax (CIT) rates|
|Headline CIT rate (%)||
|Corporate income tax (CIT) due dates|
|CIT return due date||
Within one year from the end of the company’s tax year.
|CIT final payment due date||
Within six months after the end of the company's tax year.
|CIT estimated payment due dates||
Advance payment is to be made twice a year, first during the first six months of the company's tax year and second before the end of the year.
|Personal income tax (PIT) rates|
|Headline PIT rate (%)||
|Personal income tax (PIT) due dates|
|PIT return due date||
The date for the filing of returns is fixed each year by government notice.
|PIT final payment due date||
|PIT estimated payment due dates||
End of August and end of February.
|Value-added tax (VAT) rates|
|Standard VAT rate (%)||
|Withholding tax (WHT) rates|
|WHT rates (%) (Dividends/Interest/Royalties)||
Resident: 20 / 0 / 0;
Non-resident: 20 / 15 / 15
|Capital gains tax (CGT) rates|
|Headline corporate capital gains tax rate (%)||
|Headline individual capital gains tax rate (%)||
|Net wealth/worth tax rates|
|Headline net wealth/worth tax rate (%)||
|Inheritance and gift tax rates|
|Headline inheritance tax rate (%)||
|Headline gift tax rate (%)||