What are payroll taxes in South Africa?

Individuals and companies that are not “tax residents” in South Africa are taxed on a source basis, subject to any relief provided by an applicable double taxation agreement. In relation to services, the “source” is typically where the services are rendered, (and so an employee not tax resident in South Africa who provides services in South Africa will be subject to tax on a source basis).

Under the Skills Development Levies Act, 9 of 1999, companies with a payroll of more than ZAR500,000 per annum must contribute 1% of their payroll per month to the South African Revenue Services as a contribution towards the sector education and training authority in their jurisdiction.