Value Added Tax (VAT) is levied at a standard rate of 14% on
all goods and services subject to certain exemptions, exceptions, deductions
and adjustments provided for in the VAT Act 89 of 1991, as amended.
Small-business corporations (those with an annual turnover
of less than R14-million) benefit from a graduated tax rate of 0% on the first
R43 000 taxable income, 10% from R43 001 to R300 000 taxable income and R25 700
+ 29% in excess of R300 001 taxable income, and can write off certain
investment expenditure in the year in which it is incurred.
The Skills Development Levy is a compulsory levy scheme for
the funding of education and training.
In terms of the Income Tax Act 58 of 1962, employers are required to:
Deduct the correct amount of tax from employees;
Pay those amounts to SARS; and
Declare such amounts paid to SARS on a Monthly Employer Declaration
Contributions to the UI fund are the compulsory contributions payable
in terms of the UIC Act to fund
the benefits available to workers in terms of the UI Act. With effect
from 1 April 2002, contributions
collected by SARS are transferred to the UI Fund which is administered
by the UI Commissioner.