Tax: Interesting fact

[OnYellowBrickRd]

I did some research this morning that angered me a bit more. There are 5.9 million registered individual tax payers in RSA. The country has a population of 49 million. This means that 11% of the people in RSA have to carry the costs of running a country (with corrupt officials spending millions of Rands on political party birthday celebrations and overseas holidays for themselves and their friends and families). In Australia, there are over 12 million registered tax payers. The population is 22 million strong meaning that 54% of the population contributes to the country's expenses. I'm a bit tired of working my butt of and getting nothing in return!

[Jordy]

There is another aspect that may interest you. If you have more spare time do a little research into this - I think that the mines in Australia contribute far greater to the ATO than the mines in South Africa give to SARS.

The mine workers here earn exceptionally good salaries and it is common to hear of salaries of over $120 000-160 000 for ordinary workers. The tax paid by miners must be significant. But then there is the Royalty Taxes the mines pay which is huge. Then there is Resource Tax on all mine profit.

I dont know how the figures compare but I have a distinct impression that the ordinary people of Australia have benefited hugely from the mineral resources of their own country compared to the the benefit South Africans saw from their mines. Is this sense maybe Juju's motivation for mining reform is valid.

[AllisonW]

This was one of the key reasons we left. The economic situation in SA is simply unsustainable, especially as the bulk of our youth are entering the market unemployable and hence untaxable.

[Guest May]

Yes I was losing my humour about the same thing this morning. They tax you to death, money you will never again, you are lucky if you can find a job esp after 40 and Chinese being BEE, HOGWASH. Private organisations have to do traffic control- when was the last time you saw traffic officer directing traffic in Jozi. And the potholes- my boss paid R20k to fix her car and then you get to the flashing traffic lights in Bryanston and wonder who is sponsoring them being fixed. VAT, Fuel Levies, higher inflation...the masses are starving, its a ticking time bomb while Zuma and Juju play in the sandpit. Why the heck do we have to pay for wife #2 to 7 or whatever number it is now. Sorry I am very frustrated bec my spouse does not want to cross and my visa is ticking away into year 4-5. I am moedeloos. When the Helen Zille's of this world move on where will we be?

[21yearsoutofrsa]

While I agree that there is a huge disparity and that high contributors don't get value for money and that graft in particular is a huge issue ( which is the least value for money) but Income tax is not the only tax raised.

Companies in both South Africa and Australia will argue they get very little for the company taxes they pay.

Individuals in both countries pay a cOnsumption tax, VAT, and GST, and almost every individual in both countries pay this tax.

[Riekie]

There are 5.9 million registered individual tax payers in RSA. The country has a population of 49 million. This means that 11% of the people in RSA have to carry the costs of running a country

In Australia, there are over 12 million registered tax payers. The population is 22 million strong meaning that 54% of the population contributes to the country's expenses.

Wow, I knew it was probably a bit out of whack, but never realised it was THAT bad!! Quite Shocking! Sjoe!

[benp]

On a similar note, you'll most likely find that your average tax rate in Oz in 3-4% less than in RSA.

Also, do not forget to include 'quasi-taxes' in your RSA calculation, such as medical aid, higher rates for income protection and life insurance, school fees (even for public schools), security and such. Once I add all this together, my average marginal tax in RSA is around 49%.

In Oz I'm looking at 29-31%, and that is with life insurance, medical insurance and school fees. And I'll probably get much better 'value for money' for the taxes I do pay, eventually in Oz.

[Brad76]

I doubt Malema's true intentions have anything to do with helping the masses!!!

[bbop]

That's why we are so glad to be in the Middle-East, every cent earned is put straight into your pocket - until you send your money home, then the banks feast on it like vultures with all their bank costs.

[Short&Tall]

I seem to remember reading.g that the majority of the registered tax payers are below the tax threshold and don't actually pay tax.

[benp]

I seem to remember reading.g that the majority of the registered tax payers are below the tax threshold and don't actually pay tax.

Only 19% out of 5.9 mil registered PAYE tax payers fall bellow minimum threshold with no tax to pay.

What you probably read was that top 8% of all taxpayers (R400k and above) pay 54% of all income taxes,

120-400k bracket pays 41% of taxes(48% of all tax payers fall into this category),

60-120k pays 3.9% of taxes (24.5% of of all tax payers fall into this category)

and 60k and below is 13% + another 6% with no income reported with no tax to pay.

Edited April 9, 2012 by benp

[Denzil]

On that note. SCARY!!!!!!!

Just want to find out.....to cut the purse strings to SARS, how do I go about cancelling my Tax with SARS.

I read that only if you immigrate you can get a TCC certificate and then do the cancellation on the tax.

Does any one know if this also apply for the 457 long stay Visa aswell?

Can some ne help with it?

Will also be trying to phone 2 morrow and try to speak to some one there that will understand or have someone a Name I can ask who might be able to assist me?

Thank you

[RichardH]

On a similar note, you'll most likely find that your average tax rate in Oz in 3-4% less than in RSA.

Also, do not forget to include 'quasi-taxes' in your RSA calculation, such as medical aid, higher rates for income protection and life insurance, school fees (even for public schools), security and such. Once I add all this together, my average marginal tax in RSA is around 49%.

In Oz I'm looking at 29-31%, and that is with life insurance, medical insurance and school fees. And I'll probably get much better 'value for money' for the taxes I do pay, eventually in Oz.

I definitely have far more money in my pocket in Oz despite the cost of living. The 'quasi-taxes' you refer to are draining the life out of the middle class in SA. R5000 odd per month for a medical aid in SA, never mind school fees etc etc. The other thing is that the dollar in Aus is worth something so if you save $100 it will mean something even in 6 months. R1000 in SA, how much is that in 6 months time?

[heine77]

I did some research this morning that angered me a bit more.

This reminds me of a saying that I like to use: Warning, research causes cancer in rats!

I have researched enough reasons necessary to convince me to take the steps towards emigration, I now only research those steps!

But I must agree - from a financial point of view we are on a hiding to nowhere. No need to even mention the new CGT rates or taxes on dividends... For the first half of every year we work for the tax man, then we work for another 3 months for what the tax man should have given us.

[heine77]

And to get even more philosophical: You don't need to explain yourself; your friends dont need it and your enemies won't believe it....

[MadMother]

Hi Denzil

Did you ever find out how to get rid of SARS? I sent them a letter in 2010 requesting them to deregister me, but they said that I needed to send them form 336b (guess the bright spark thought I wanted tax clearance). They keep sending me returns every year on e-filing and it's such a pain!

[HadEnoughofJuju]

I suggest you contact a tax consultant in SA and just pay them to do it. SARS may be the only government department that is on the ball but sometimes its just not worth the pain and suffering to try and explain your situation to them.

[bbop]

We finally took the bold step this week and started the process of deregistering from SARS and withdrawing our pension