10 December 2024 – National Treasury and the South African Revenue Service (SARS) have jointly published the 17th annual edition of the Tax Statistics. The 2024 edition reviews tax-revenue collection and tax-return information for the 2020 to 2024 tax years, as well as for the 2019/20 to 2023/24 fiscal years.
SARS is the nation’s tax-collecting authority whose mandate is also to promote a culture of voluntary taxpayer compliance and facilitate legitimate trade across our borders. Over the past 30 years, tax collections have increased from R113.8 billion in 1994/95 to R1 740.9 billion in 2023/24, at a compounded annual growth rate of 9.9% and an average tax-to-GDP ratio of 22.2%. Since the inception of SARS in 1997/98, the tax administration has collected more than R21.1 trillion for the country’s social and economic development. In the 2023/24 fiscal year, SARS collected R2.2 trillion in gross tax revenue (R87.0 billion or 4.2% more than in the prior year); refunded taxes worth R413.9 billion (R32.8 billion or 8.6% more than in the prior year); and netted tax revenue amounting to R1.7 trillion (R54.2 billion or 3.2% more than in the preceding year).
The 2023/24 fiscal year saw a sharp decline in Company Income Tax (CIT) revenue, particularly in the mining sector. This decline was mainly a result of low commodity prices, which offset the revenue gains from the elevated commodity prices over the previous two years. In addition, weak global growth, persistent power outages, and logistical disruptions further weighed on the sector. Value-Added Tax (VAT) revenue growth remained subdued as consumers continued to face financial constraints due to high interest rates, which erodes disposable household income and expenditure. Personal Income Tax (PIT) revenue, however, remained buoyant, supported by a recovery in employment and earnings.
SARS is determined to make it hard and costly for taxpayers who wilfully fail to meet their obligations. Compliance revenue secured from focused activities and efforts by SARS yielded R260.5 billion for the 2023/24 fiscal year, which was R53.0 billion or 25.5% more than in the preceding year. On 14 August 2024, the total value of trade facilitated by SARS for the 2023/24 fiscal year was R3.93 trillion, a R21.9 billion or 0.6% increase since the previous year.
Key figures in the 2024 Tax Statistics bulletin:
- Chapter 1 of the bulletin shows that the Total Tax Revenue collected by SARS increased from R1 355.8 billion in 2019/20 to R1 740.9 billion in 2023/24, growing at a compound annual growth rate (CAGR) of 6.4% over this period. This was higher than the rate of 6.1% attained for the period from 2015/16 to 2019/20.
- In Chapter 2 of the publication, the data reveal that by 31 March 2023, the PIT register had grown annually by 4.5% to 25.9 million individuals (and by a further 4.3% to 27.1 million at the end of March 2024). The number of individuals expected to submit Income Tax returns was 7.6 million for the 2023 tax year. PIT, geographic, demographic, and other analyses of the assessments of the taxpayers who had been assessed by 9 September 2024 for the 2023 tax year showed that:
- 2 361 099 (35.5%) of assessed taxpayers were registered in Gauteng.
- 855 274 (36.2%) of assessed taxpayers lived in the Johannesburg Metro and were taxed on an average taxable income of R484 672.
- 1 775 779 (26.7%) of assessed taxpayers were from 35 to 44 years old.
- 3 495 942 (52.6%) of assessed taxpayers were male; 3 148 808 (47.4%) were female.
- Assessed taxpayers reported an aggregated taxable income of R2.3 trillion and tax liability of R499.9 billion. The average tax rate was 21.3% versus 21.5% in the previous tax year.
- Statistics for CIT in Chapter 3 highlighted that, out of the 1 166 692 companies assessed by 31 August 2024 for the 2022 tax year, 20.7% declared a positive taxable income, 54.6% had taxable income equal to zero, and the remaining 24.7% reported an assessed loss. Of the companies assessed, 549 were large companies (0.2% of the companies with positive taxable income) that each had taxable income of more than R200 million and were liable for 66.5% of the CIT assessed. The Financial Intermediation, Insurance, Real-estate, and Business-services sector accounted for 266 262 (22.8%) of the assessed companies and was liable for 32.8% of the CIT assessed, contributing the most among all the sectors.
- Chapter 4 indicates that in 2023/24, of the 488 118 active VAT vendors, 80.9% were companies and close corporations. These vendors contributed 93.2% to Domestic VAT payments and received 92.2% of the VAT refunds paid. Although individuals (sole proprietors) composed 11.7% of active VAT vendors, they contributed 1.7% to Domestic VAT payments and received 0.7% of the VAT refunds paid.
- As detailed in Chapter 5, Import VAT and Customs Duties accounted for 15.2% and 4.1% of the year’s Total Tax Revenue, respectively. In aggregate, these revenue sources accounted for 19.3% of Total Tax Revenue, which was higher than the 17.7% average attained over the preceding five fiscal years. For the 2023/24 fiscal year:
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- Import VAT was mainly collected from the importation of Machinery and Electronics (28.9% versus 26.4% in 2022/23); Chemical Products (12.2% versus 13.8% in 2022/23); and Vehicles, Aircraft, and Vessels (10.6% versus. 11.2% in 2022/23). Import VAT from the top-three contributing economic sectors made up 87.1% (87.7% in 2022/23) of the total, namely the Wholesale and Retail Trade, Catering, and Accommodation sector (Tertiary) at 39.6% versus 38.2% in 2022/23); followed by the Manufacturing sector (Secondary) at 29.0% versus 30.8% in 2022/23); and Financial Intermediation, Insurance, Real-estate, and Business-services (Tertiary) (18.5% versus 18.6% in 2022/23).
- The largest contributors to Customs Duties were Vehicles, Aircraft, and Vessels (26.1% versus 29.0% in 2022/23); Textiles and Clothing (15.9%, same as 2022/23); Machinery and Electronics (13.1% versus 12.3% in 2022/23), as well as Food, Beverages, and Tobacco (13.0% versus 13.4% in 2022/23).
- Finally, Chapter 6 deals with other taxes and collections, such as Capital Gains Tax (CGT), Transfer Duty, Mineral and Petroleum Resources Royalty (MPRR), Southern African Customs Union (SACU) payments, and Diesel refunds.
- MPRR payments by extractors contracted by R9.4 billion (36.9%) from R25.3 billion in 2022/23 to R16.0 billion in 2023/24 because of a significant decline in commodity prices, particularly platinum group metals (PGMs) and coal. This contraction was less severe thanks to improved gold and iron-ore prices, which effectively offset the decline in MPRR payments.
- Regarding SACU arrangements, South Africa contributed 97.5% to the Customs Revenue Pool total in 2023/24, compared to 97.4% in 2022/23. This may be attributed to the SACU Agreement, whereby customs and excise duties from imports into the region are collected at the first point of entry. In most cases, South Africa is the first point of entry for the landlocked member states. Shares received by South Africa in 2023/24 amounted to R79.7 billion (R34.4 billion in the prior year), equal to 50.0% of the R159.5 billion total shared revenue pool (44.1% of R78.1 billion in the prior year). The portion for Botswana, Eswatini (formerly Swaziland), Lesotho, and Namibia (collectively referred to as BELN) amounted to R79.8 billion (50.0%).
The 2024 Tax Statistics bulletin and supporting documents are available on the SARS and National Treasury websites at www.sars.gov.za and www.treasury.gov.za.
SARS and National Treasury welcome comments and suggestions from the public. Please send them by e-mail to [email protected].
See the Tax Statistics webpage for the detail.
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