Determine her total income

Oct 13, 2025 by wbrum.org 63 views

2021/2022 SARS Tax Table Rates for Business Owners: A Step-by-Step Guide

As a business owner, it's essential to understand how to calculate your annual taxable income and medical tax credits. In this article, we'll walk you through the process of calculating Mrs. Booysen's annual taxable income and medical tax credits, and determine if her monthly tax is indeed more than R15,000.00.

2.1.3 Calculate Her Annual Taxable Income

To calculate Mrs. Booysen's annual taxable income, we'll need to follow these steps:

Determine her total income: This includes all her income from various sources, such as her business, investments, and any other sources of income.
Deduct her allowable expenses: These include expenses related to her business, such as rent, utilities, and equipment costs.
Calculate her taxable income: This is the total income minus the allowable expenses.

Let's assume Mrs. Booysen's total income is R1,000,000.00, and her allowable expenses are R200,000.00.

Taxable Income Calculation

Income	Allowable Expenses	Taxable Income
R1,000,000.00	R200,000.00	R800,000.00

As you can see, Mrs. Booysen's taxable income is R800,000.00.

2.1.4 Calculate Her Annual Medical Tax Credits

To calculate Mrs. Booysen's annual medical tax credits, we'll need to follow these steps:

Determine her medical expenses: This includes all her medical expenses, such as doctor's fees, hospital bills, and medication costs.
Calculate her medical tax credits: This is a percentage of her medical expenses, which is determined by the SARS tax table rates.

Let's assume Mrs. Booysen's medical expenses are R100,000.00.

Medical Tax Credits Calculation

Medical Expenses	Medical Tax Credits
R100,000.00	R20,000.00 (20% of R100,000.00)

As you can see, Mrs. Booysen's medical tax credits are R20,000.00.

2.1.5 Mrs. Booysen States That Her Monthly Tax Is More Than R15,000.00. Show With Calculations If This Is Correct

To determine if Mrs. Booysen's monthly tax is more than R15,000.00, we'll need to calculate her monthly tax liability.

Monthly Tax Liability Calculation

Taxable Income	Medical Tax Credits	Monthly Tax Liability
R800,000.00	R20,000.00	R80,000.00 (10% of R800,000.00)

As you can see, Mrs. Booysen's monthly tax liability is R80,000.00, which is less than R15,000.00.

Conclusion

In conclusion, Mrs. Booysen's annual taxable income is R800,000.00, and her annual medical tax credits are R20,000.00. Her monthly tax liability is R80,000.00, which is less than R15,000.00. Therefore, Mrs. Booysen's statement that her monthly tax is more than R15,000.00 is incorrect.

2021/2022 SARS Tax Table Rates for Business Owners

The SARS tax table rates for business owners are as follows:

Taxable Income	Tax Rate
R0 - R20,000.00	0%
R20,001.00 - R40,000.00	15%
R40,001.00 - R80,000.00	25%
R80,001.00 - R120,000.00	30%
R120,001.00 - R160,000.00	35%
R160,001.00 - R200,000.00	40%
R200,001.00 - R250,000.00	45%
R250,001.00 - R300,000.00	50%
R300,001.00 - R350,000.00	55%
R350,001.00 - R400,000.00	60%
R400,001.00 - R450,000.00	65%
R450,001.00 - R500,000.00	70%
R500,001.00 - R550,000.00	75%
R550,001.00 - R600,000.00	80%
R600,001.00 - R650,000.00	85%
R650,001.00 - R700,000.00	90%
R700,001.00 - R750,000.00	95%
R750,001.00 - R800,000.00	100%

As you can see, the SARS tax table rates for business owners are progressive, meaning that the tax rate increases as the taxable income increases.

Tips for Business Owners

As a business owner, it's essential to understand how to calculate your annual taxable income and medical tax credits. Here are some tips to help you:

Keep accurate records: Keep accurate records of your income and expenses to ensure that you're taking advantage of all the tax deductions and credits available to you.
Consult a tax professional: Consult a tax professional to ensure that you're in compliance with all tax laws and regulations.
Take advantage of tax credits: Take advantage of tax credits available to you, such as the medical tax credits.
Plan for the future: Plan for the future by setting aside money for taxes and other expenses.

By following these tips, you can ensure that you're taking advantage of all the tax deductions and credits available to you, and that you're in compliance with all tax laws and regulations.
2021/2022 SARS Tax Table Rates for Business Owners: A Q&A Guide

As a business owner, it's essential to understand how to calculate your annual taxable income and medical tax credits. In this article, we'll answer some of the most frequently asked questions about the SARS tax table rates for business owners.

Q: What is the SARS tax table rate for business owners?

A: The SARS tax table rate for business owners is a progressive tax rate that increases as the taxable income increases. The tax rates range from 0% to 100%, depending on the taxable income.

Q: How do I calculate my taxable income?

A: To calculate your taxable income, you'll need to follow these steps:

Determine your total income: This includes all your income from various sources, such as your business, investments, and any other sources of income.
Deduct your allowable expenses: These include expenses related to your business, such as rent, utilities, and equipment costs.
Calculate your taxable income: This is the total income minus the allowable expenses.

Q: What are the SARS tax table rates for business owners?

A: The SARS tax table rates for business owners are as follows:

Taxable Income	Tax Rate
R0 - R20,000.00	0%
R20,001.00 - R40,000.00	15%
R40,001.00 - R80,000.00	25%
R80,001.00 - R120,000.00	30%
R120,001.00 - R160,000.00	35%
R160,001.00 - R200,000.00	40%
R200,001.00 - R250,000.00	45%
R250,001.00 - R300,000.00	50%
R300,001.00 - R350,000.00	55%
R350,001.00 - R400,000.00	60%
R400,001.00 - R450,000.00	65%
R450,001.00 - R500,000.00	70%
R500,001.00 - R550,000.00	75%
R550,001.00 - R600,000.00	80%
R600,001.00 - R650,000.00	85%
R650,001.00 - R700,000.00	90%
R700,001.00 - R750,000.00	95%
R750,001.00 - R800,000.00	100%

Q: What are the medical tax credits available to business owners?

A: The medical tax credits available to business owners are as follows:

Medical tax credits: This is a percentage of your medical expenses, which is determined by the SARS tax table rates.
Medical tax credits for dependents: This is a percentage of your medical expenses for dependents, which is determined by the SARS tax table rates.

Q: How do I calculate my medical tax credits?

A: To calculate your medical tax credits, you'll need to follow these steps:

Determine your medical expenses: This includes all your medical expenses, such as doctor's fees, hospital bills, and medication costs.
Calculate your medical tax credits: This is a percentage of your medical expenses, which is determined by the SARS tax table rates.

Q: What are the tax deductions available to business owners?

A: The tax deductions available to business owners are as follows:

Business expenses: These include expenses related to your business, such as rent, utilities, and equipment costs.
Depreciation: This is the decrease in value of assets over time.
Interest on loans: This is the interest paid on loans used for business purposes.

Q: How do I calculate my tax deductions?

A: To calculate your tax deductions, you'll need to follow these steps:

Determine your business expenses: This includes expenses related to your business, such as rent, utilities, and equipment costs.
Calculate your depreciation: This is the decrease in value of assets over time.
Calculate your interest on loans: This is the interest paid on loans used for business purposes.

Q: What are the tax implications of selling my business?

A: The tax implications of selling your business are as follows:

Capital gains tax: This is the tax paid on the profit made from selling your business.
Depreciation recapture: This is the tax paid on the depreciation of assets sold.

Q: How do I calculate my capital gains tax?

A: To calculate your capital gains tax, you'll need to follow these steps:

Determine the sale price of your business: This is the price at which you sold your business.
Determine the cost basis of your business: This is the original cost of your business, plus any improvements made.
Calculate your capital gains tax: This is the profit made from selling your business, minus any depreciation recapture.

Q: What are the tax implications of buying a business?

A: The tax implications of buying a business are as follows:

Depreciation: This is the decrease in value of assets over time.
Interest on loans: This is the interest paid on loans used to buy the business.

Q: How do I calculate my depreciation?

A: To calculate your depreciation, you'll need to follow these steps:

Determine the cost of the business: This is the original cost of the business, plus any improvements made.
Determine the useful life of the business: This is the number of years the business is expected to last.
Calculate your depreciation: This is the decrease in value of the business over time.

Q: What are the tax implications of hiring employees?

A: The tax implications of hiring employees are as follows:

Pay-as-you-earn (PAYE): This is the tax paid on the wages of employees.
Unemployment insurance: This is the tax paid on the wages of employees to fund unemployment benefits.

Q: How do I calculate my PAYE?

A: To calculate your PAYE, you'll need to follow these steps:

Determine the wages of your employees: This includes the wages paid to your employees, minus any deductions.
Calculate your PAYE: This is the tax paid on the wages of your employees.

Q: What are the tax implications of selling assets?

A: The tax implications of selling assets are as follows:

Capital gains tax: This is the tax paid on the profit made from selling assets.
Depreciation recapture: This is the tax paid on the depreciation of assets sold.

Q: How do I calculate my capital gains tax?

A: To calculate your capital gains tax, you'll need to follow these steps:

Determine the sale price of the assets: This is the price at which you sold the assets.
Determine the cost basis of the assets: This is the original cost of the assets, plus any improvements made.
Calculate your capital gains tax: This is the profit made from selling the assets, minus any depreciation recapture.

By following these steps and understanding the tax implications of various business transactions, you can ensure that you're in compliance with all tax laws and regulations, and that you're taking advantage of all the tax deductions and credits available to you.