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Collecting tax

I was interested to read the tax statistics for 2018 put out by the National Treasury and the South African Revenue Service.  Tax revenue is made up largely of personal income tax, being 38,1% of all tax collected in a year, then Value Added Tax collects 24,5% of the tax and corporate income tax produces 18,1%. That is probably because a lot of companies have moved their head office off-shore to countries like Mauritius where they claim that their intellectual property lies and as a result they pay less tax.  Other interesting statistics include that 40,1% of all taxpayers were registered in Gauteng and the majority of those live in Johannesburg.  Of those taxpayers 54,7% are male and 45,3% were female. 

Some studies suggest that South Africa loses about R7 billion a year due to multi-national corporations shifting their profits to other countries and that 98% of that loss comes from the biggest 10% of multi-national corporations.  Apparently, half of all profits shifted out of South Africa are moved to Switzerland, which has a corporate income tax rate of 8,5% compared to South Africa’s 28%.   

Posted by Michael de Broglio on Thursday 16-May-19 Share on Facebook   Tweet It

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Comments

candice  said:
on Monday 24-Jun-19 04:54 PM
We will never win in this Country, like David said when they have a shortfall we have to suffer and pay for it. We pay so much for Tax and look at what state this country is in. Nothing gets done about it.

cornelie  said:
on Tuesday 11-Jun-19 03:24 PM
Not surprising at all. I would also not invest any profits in South Africa.

Wanika  said:
on Friday 07-Jun-19 04:50 PM
These statistics are not surprising given that South Africa has one of the most complicated tax systems in the world. If I had my own business I would also move it overseas.

Tersia  said:
on Wednesday 05-Jun-19 09:21 AM
Quite interesting to know. They should perhaps have a look as to why they are losing all of that money and why people are shifting their businesses. But the sad thing, they don't. They just carry on making things difficult for us who are left here. If I was in that position I would have done the same and moved my business else where.

Sinead  said:
on Monday 03-Jun-19 04:52 PM
These kinds of statistics will always interested me. It's also one of the subjects I took in University.
Sometimes I wish that we could go back to a bartering system and money didn't exist.
On the other hand, it's so fascinating to know where all the money comes from and where it goes.

Henrietta  said:
on Monday 03-Jun-19 09:18 AM
This is just another sign of people getting fed up with our government by moving their businesses overseas. Almost everyone pays tax and look the state our country is in, the corruption, politics, state of our roads etc. One hand washes the other hand and sorry to say but SA doesn't look after their people.

Shristi  said:
on Sunday 02-Jun-19 07:14 PM
Considering the current state of affairs of South Africa, I don't blame businesses for relocating overseas.

Ashleigh  said:
on Friday 31-May-19 09:45 AM
Doesn't surprise me. We pay high tax, see no improvement anywhere and best of all we keep quiet and just continue paying.

Zindy  said:
on Wednesday 29-May-19 08:49 AM
Wow a whoping 28% That is ridiculous. To think their economy is still stronger than ours with a tax rate of only 8.5%. That is definitely the problem here over taxed, corruption, mismanagement and everyday it only gets worse.

Victoria  said:
on Wednesday 29-May-19 08:45 AM
These tax statistics are scary to see, scary to see we lose R7 billion a year to corporations shifting profits to other countries that is not good.

Thabitha  said:
on Wednesday 29-May-19 08:25 AM
I am hoping that one day all these rich countries will help SA to grow and be a better country

Helen  said:
on Wednesday 29-May-19 07:53 AM
Very interesting stats! Lets hit with high tax the ones who can still pay and leave ones who is trying to run away from paying it! How long this system will lost. More companies and high qualified people will move overseas and who will pay this high tax?

Liz  said:
on Tuesday 28-May-19 04:44 PM
I am in agreement with most of the comments, the government's only way of acquiring the shortfall is to overtax the tax paying individuals which is leading to the loss of so many companies. The statistics are interesting though.

Mathilda Du Preez  said:
on Monday 27-May-19 02:45 PM
These are interesting statistics and I did not know that 40,1% of all taxpayers were registered in Gauteng and that the majority lives in Johannesburg.

Fikile  said:
on Friday 24-May-19 09:52 AM
I think South Africa is still is going to lose out and may lose more than other years because of the corrupt government and it's workers as long as we are still being lead by the same people we are far from gaining anything.

Michelle D  said:
on Friday 24-May-19 09:09 AM
South Africa has been an extremely volatile and risky place to conduct business lately with load shedding, the recent elections, corruption, the proposals to nationalize the reserve bank. We have had all of the hints of becoming the next Zimbabwe. It is not surprising businesses are relocating.

Melissa van Tellingen   said:
on Thursday 23-May-19 10:08 AM
Interesting stats. I agree with David on this one. It is quite concerning. We always feel the implications.

Angelique Jurgens  said:
on Tuesday 21-May-19 09:33 AM
Quite interesting statistics to know! People will find all sorts of way not to pay tax or take it else where.And really do we blame them? We can see our taxes is fancy cars and extravagant, lavish affairs or "lunches".

brumilde  said:
on Tuesday 21-May-19 07:40 AM
Problem is that if they try and quick fix this, wont they increase the tax. Create more jobs. More income more tax. ... a hearse blow is coming to our country i fear if this dont start to equal out

Clare  said:
on Monday 20-May-19 04:46 PM
This is why I wish at times I can just be that young had no care in world Child. Now we work to feed the man, not feed our families. I just keep on holding on to Hope that one day things can come right.

Kathryn  said:
on Monday 20-May-19 11:17 AM
Profit-shifting and tax abuse by multinational corporations deprives South Africa of valuable and essential financial resources.

Megan  said:
on Monday 20-May-19 09:27 AM
Greed, individuals wants to live the life of luxury thus taking money from government, businesses and us. Its a never ending cycle, after they start getting loans from other countries, they go again, taking it the same way.

Joyce  said:
on Friday 17-May-19 04:57 PM
It sounds like countries like Mauritius and Switzerland are able to attract multinational companies.

Dasanya  said:
on Friday 17-May-19 04:54 PM
These tax statistics are interesting to note. R7 billion is a huge loss and definitely money that could assist in various ways however, an income tax rate of 8,5% compared to our rate of 28% is the better option only that as a result, the rest of us have to bear the brunt of such losses.

sarah  said:
on Thursday 16-May-19 10:59 AM
I must agree with David and then the government runs out of money. I don't mind paying tax ,if I can see where the money is going. It make business sense to pay less tax but they don;'t think of our economy then.

Bianca N  said:
on Thursday 16-May-19 09:35 AM
A really big difference between 8.5% and 28%. And even with the lower interest rate, their economy is so much stronger than ours. It is amazing what a capable government can do. While we struggle to make it through the month, citizens in countries like Switzerland have a much better quality of life. We essentially pay what our government so recklessly spends. They budget for things, but they know that should they exceed this budget they can just make it our responsibility to pay the money they enjoy spending.

Alexis  said:
on Thursday 16-May-19 08:27 AM
This is the way the government is able to budget for their expenditure and SA has a very high tax bracket as it is. Know SA though, there will most likely be a loan in there somewhere - Would be nice for the country to get their economic status to a point where the middle man is not the ones paying the most

Michelle Smillie  said:
on Thursday 16-May-19 08:20 AM
I agree with David. It seems like the Government can only think of one way out of money problems and debts, and that is to take more money of the citizens to make up for it. Such a sad situation for all of us, but who knows when things will improve..

david  said:
on Thursday 16-May-19 07:27 AM
and, as the government runs out of money, they tax the citizens and businesses more to cover the shortfall. so more businesses and high net worth individuals move out of south africa. when the government runs out of money, they tax the citi..... wash, rince, repeat... until all the money is gone, and then what? you, at some stage, have to come to the understanding that nobody can be so stupid as to keep repeating the same mistakes. this is being done on purpose.

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Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
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