Learn: Tax
Tax for Individuals
If you earn a salary in South Africa, most of your tax is handled automatically. Here is how it all works — and what you can do to keep more of your money.
How PAYE works
Pay-As-You-Earn is the system your employer uses to deduct income tax from your salary every month. Your employer calculates the correct amount based on SARS's annual tax tables, your rebates, and any deductions you have registered (like retirement annuity contributions or medical aid).
The money goes straight to SARS — you never handle it. At the end of the tax year (28 February), your employer issues you an IRP5 certificate summarising everything that was earned and deducted.
What your IRP5 tells you
Your IRP5 is a single-page summary of your tax year. The key numbers are:
- Gross income — your total salary before any deductions
- PAYE deducted — how much income tax was withheld
- UIF contributions — your 1% unemployment insurance contribution
- Pension/provident fund contributions — amounts going to retirement
- Medical aid contributions — employer and employee portions
When you file your ITR12, this data is already pre-populated by SARS. Your job is to check it is correct and add anything SARS does not know about (like additional medical expenses or home office claims).
How to file your ITR12
Filing is straightforward for most salaried employees:
- Log into SARS eFiling (efiling.sars.gov.za) or use the SARS MobiApp
- Your ITR12 will be pre-populated with data from your employer and financial institutions
- Check each section — income, deductions, medical, retirement contributions
- Add any additional deductions you want to claim
- Submit the return
- SARS issues your ITA34 (assessment) — usually within 24-72 hours
The filing season typically runs from July to November. If you only have a salary and no additional income, you may qualify for auto-assessment — SARS files for you and you just confirm the result.
What you can claim
Common deductions for salaried individuals:
- Retirement contributions — up to 27.5% of taxable income (max R350,000/year)
- Medical scheme credits — automatic rebate for being on a medical aid
- Additional medical expenses — out-of-pocket costs above a threshold
- Travel allowance — if you use your own car for work (not commuting)
- Home office — if you have a dedicated room used exclusively for work (strict requirements)
- Donations — to approved Section 18A organisations, up to 10% of taxable income
Worked example
If you earn R35,000/month (R420,000/year)
| Gross annual income | R420,000 |
| Retirement fund contribution (7.5%) | - R31,500 |
| Taxable income | R388,500 |
| Tax on R388,500 (2024/25 tables) | R79,695 |
| Less: Primary rebate | - R17,235 |
| Less: Medical scheme credit (main + 1 dep, 12 months) | - R8,736 |
| Total tax for the year | R53,724 |
| Monthly PAYE deduction | ~R4,477 |
Simplified example using 2024/25 rates. Actual amounts depend on your specific deductions and circumstances.
IRP5
“Employee tax certificate issued by the employer reflecting remuneration and deductions.”
“Your year-end payslip summary — it shows SARS exactly what you earned and what tax was already paid.”
This is educational content. For official advice, speak to a registered tax practitioner. You can also visit sars.gov.za for the latest information.
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