Category: Insights | National Treasury Revenue Growth SARS South Africa TAX Trends VAT CIT
17TH TAX STATISTICS
The South African Revenue Service (SARS) and National Treasury have released the 17th edition of the Tax Statistics, covering the 2020–2024 tax years. These statistics provide valuable insights into revenue growth, challenges, and sector-specific performance. This article explores key findings and trends relevant to individuals, businesses, and organizations navigating South Africa’s tax system.
REVENUE GROWTH OVER TIME
- Tax collections in South Africa increased from R113.8 billion in 1994/95 to R1.74 trillion in 2023/24, representing a compounded annual growth rate (CAGR) of 9.9%.
- The average tax-to-GDP ratio was 22.2%, reflecting consistent tax collection performance relative to the economy.
- SARS collected R2.2 trillion in gross tax revenue for 2023/24, 4.2% higher than the previous year. Net tax revenue, after refunds, was R1.7 trillion—a 3.2% increase from 2022/23.
PERSONAL INCOME TAX (PIT) TRENDS
- As of March 2024, South Africa had 27.1 million registered taxpayers, a 4.3% increase from the prior year.
- Approximately 7.6 million individuals submitted returns for the 2023 tax year, with Gauteng representing 35.5% of assessed taxpayers.
- The average tax rate for assessed taxpayers dropped slightly to 21.3% from 21.5%.
CORPORATE INCOME TAX (CIT) AND VAT
KEY CIT INSIGHTS
- In 2022, only 20.7% of assessed companies reported positive taxable income. Large corporations, particularly in Financial, Insurance, and Business-services, contributed the majority of CIT.
- Revenue from mining companies declined due to weak commodity prices.
VAT CONTRIBUTIONS
- VAT remained a robust revenue source, with 80.9% of active vendors being companies or close corporations. They accounted for 93.2% of domestic VAT payments.
IMPORT VAT AND CUSTOMS DUTIES
- Import VAT contributed 15.2% of total revenue, driven by imports of machinery, electronics, and vehicles.
- Customs duties also provided significant revenue, particularly from vehicles, textiles, and electronics.
OBSERVATIONS ON OTHER TAXES
- Mineral and Petroleum Resources Royalty (MPRR) payments dropped 36.9%, attributed to declining commodity prices. Improved prices for gold and iron ore mitigated larger losses.
- South Africa contributed 97.5% to the Southern African Customs Union (SACU) revenue pool, receiving R79.7 billion in 2023/24—a substantial increase from 2022/23.
IMPLICATIONS AND RECOMMENDATIONS
Understanding these trends is important for aligning tax strategies with emerging realities. Staying informed about revenue collection and sectoral trends can improve tax compliance and financial planning.
DISCLAIMER
Nothing in this article and/or post should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure accuracy, Tax A Sured (Pty) Ltd does not accept any responsibility for consequences of decisions taken based on this article and/or post. It remains your own responsibility to consult the relevant primary resources when taking a decision.
