Individual Income Tax Return

Total salary, wages, bonuses, and overtime before deductions. Found on your IRP5/IT3(a) certificate issued by your employer at year-end.

Commission and variable performance bonuses from employment. Declared separately from regular salary; allows deduction of related expenses such as travel and client entertainment.

Travel allowance paid by your employer. 80% is included in taxable income upfront; the taxable portion may be reduced if you maintain a logbook and claim actual business kilometres.

Current pension fund contributions deducted from your salary by your employer. Deductible under section 11F. Combined pension (4001), provident (4003), and retirement annuity (4006) contributions are deductible up to 27.5% of the greater of remuneration or taxable income, capped at R350,000 per year.

Contributions to a provident fund deducted from your salary. Deductible under section 11F alongside pension (4001) and retirement annuity (4006) contributions, subject to the combined 27.5% / R350,000 annual limit.

Contributions to a private retirement annuity (RA) fund. Deductible under section 11F. All retirement contributions (4001 + 4003 + 4006) are deductible up to 27.5% of income, capped at R350,000. Excess contributions carry forward to future years.

Monthly contributions to a registered medical scheme paid by you or your employer. Qualifies for the Medical Scheme Fees Tax Credit (section 6A) rather than a straight deduction.

Monthly tax credit under section 6A for registered medical aid members. R364/month for the principal member, R364 for the first dependant, and R246 for each additional dependant (2024/25 figures). Reduces your tax liability directly, not your taxable income.

Section 6B tax credit for qualifying out-of-pocket medical expenses exceeding a threshold, and for excess medical aid contributions. A higher credit rate applies to taxpayers aged 65 and older, or those with a disability or disabled dependant.

Total PAYE deducted by your employer(s) during the tax year. Pre-populated by SARS from IRP5 data submitted by employers. Reduces the amount you owe — or increases your refund — when your final tax liability is calculated.

Interest earned from South African banks and financial institutions. Exempt up to R23,800 per year (under 65) or R34,500 per year (65 and older). Interest above these thresholds is fully taxable at your marginal rate.

Interest earned from foreign banks or foreign financial instruments. Fully taxable at your marginal rate; no exemption applies to foreign-sourced interest. Foreign tax paid on this income may qualify for a section 6quat credit.

Taxable local dividends, primarily distributions from Real Estate Investment Trusts (REITs). Standard dividends from SA companies are exempt from income tax because Dividends Tax (20%) is withheld at source — those are not declared here.

Dividends received from foreign companies. Partially exempt: only 25/45 of the gross foreign dividend is included in your taxable income. Foreign tax paid on foreign dividends may qualify for a section 6quat or section 6quin credit.

Net rental profit from letting fixed property. Allowable expenses — bond interest, municipal rates, repairs and maintenance, agent fees, and insurance — are deducted from gross rental receipts. A net rental loss is declared under source code 4211.

Net capital gain after applying the annual exclusion of R50,000 (from the 2026/27 tax year; R40,000 in prior years). Only 40% of the net gain is included in taxable income (inclusion rate). Key exclusions: primary residence (up to R2,000,000), personal-use assets, and certain retirement fund proceeds.

Income from freelancing, consulting, independent contracting, or a sole proprietorship. Declared in the "Local Business, Trade and Professional Income" section of the ITR12 — not a single source code. Allowable business expenses are deducted to arrive at net taxable profit; a net trading loss can be set off against other income.

Donations made to approved public benefit organisations (PBOs). A valid section 18A receipt issued by the PBO is required. Deductible up to 10% of taxable income before this deduction; excess donations carry forward to the next year.