Because freelancers are not Solar Staff's employees and we don't pay taxes on their payouts (and we don't provide the IRP5 certificate), they must declare any income received via Solar Staff by themselves.
To carry on tax accounting in the Republic of South Africa (South Africa, RSA) for your Solar Staff income, you need to:
Be a tax resident
Follow the applicable tax obligations
Tax residence
South Africa taxes its residents on their worldwide income, while non-residents are taxed on their South African-source earnings only.
An individual is considered a resident of South Africa for tax purposes if they meet at least one of the following conditions:
They are ordinarily resident in South Africa, or are physically present in South Africa for a specified period.
They are physically present in South Africa for more than 91 days, in aggregate, in the relevant tax year and each of the preceding five tax years, and also for more than 915 days, in aggregate, in the preceding five tax years. If a person who has become a South African resident in terms of this physical presence test spends a continuous period of at least 330 days outside South Africa, then the individual ceases to be a resident from the date of the beginning of the absence from South Africa.
South Africa has double taxation agreements with a number of countries (full list), the provisions of which may override the applicable tax residence rules and other provisions of national legislation.
Taxpayer ID
Taxpayer Reference Number (TRN) is assigned by the South African Revenue Service (SARS) to identify taxpayers for the purposes of tax payments and other interaction with the government. You can get a TRN either in person at SARS or online (learn more). The SARS number (=TRN) consists of 10 digits and starts with 0, 1, 2, 3, or 9.
The VAT registration number is required for value-added tax payers, and it is also assigned by SARS. This number consists of 10 digits and begins with the number 4 (you can go here to verify the number). Individuals can register for VAT only if they carry out entrepreneurial activities.
Taxes and contributions payable by freelancers
Tax liabilities depend on the chosen tax status and/or eligibility for certain criteria. South Africa has only one tax status that supports receiving income via Solar Staff – sole proprietorship.
IMPORTANT! Solar Staff does not have the option to choose a tax status for freelancers based in South Africa, but you can fill in your taxpayer ID in your account.
Read on for more details.
A sole proprietor engages in entrepreneurial activities, having sole ownership of a business and bearing the corresponding risks. Because sole proprietors are not legal entities, there is no special registration procedure – all they need is a taxpayer reference number. Once they complete standard registration and obtain a TRN, sole proprietors can file all their tax returns online using the SARS eFiling service (learn more).
Please note that certain professional services are subject to licensing (examples) and require obtaining permits through the local municipality.
By default, sole proprietors work under their own name, but they can register a different name with the Companies and Intellectual Property Commission (CIPC).
In South Africa, sole proprietors can choose between the following income taxation models:
Standard tax system
The standard tax system is the default tax regime. It includes the following taxes:
Personal income tax in the form of provisional tax, which is an annual tax payable in advance.
For the tax years 2024/2025, the income tax obligation arises if the income exceeds:
95,750 South African rand (ZAR) – for taxpayers under 65 years of age
ZAR 148,217 – between 65 and 74 years
ZAR 165,689 – 75 years and older
The tax base constitutes income minus expenses/discounts at the rates applicable for the 2025 tax year (see rates by year here):
Taxable income, ZAR | Tax rate |
237,100 or less | 18% |
237,101–370,500 | 26% |
370,501–512,800 | 31% |
512,801–673,000 | 36% |
673,001–857,900 | 39% |
857,901–1,817,000 | 41% |
1,817,001 and up | 45% |
Taxpayers are allowed to deduct expenses related to business activities, including home office expenses. There are also fixed rebates. If the deductions exceed earnings, the loss can be carried forward to be set off against earnings received in subsequent years.
Income tax returns are submitted via the ITR12 Income Tax Return Form for the tax year running from March 1 to February 28. Each year, SARS announces the start of the tax filing season, which is the period during which you need to fill out and file your annual tax return (this period usually begins on July 1).
Taxpayers also need to file provisional tax returns online via the IRP6 form in order to have the payments calculated no later than 14 days before the date of the first provisional tax payment. You need to fill out the IRP6 tax return two or three times during the tax year.
The tax is paid in at least two instalments of 50% of the estimated income each:
The first provisional tax payment is to be made within 6 months from the beginning of the tax year.
The second payment is to be made no later than the last working day of the tax year (the last working day of February).
The third payment is voluntary and can be made on the last working day of September or within 6 months after the end of the tax year.
Useful links:
Value-added tax is an indirect tax levied at 15% (with the exception of certain goods categories). It applies if you exceed a certain income threshold, and there is a separate registration process.
You can register for VAT voluntarily if your income is ZAR 50,000 or above, However, all suppliers of goods and services whose annual turnover exceeds (or is expected to exceed) ZAR 1 million in any consecutive 12-month period are required to register for VAT. You must apply for VAT within 21 working days from the date of actual or expected exceeding of the income threshold.
VAT returns are submitted in the form of the VAT201 Vendor Declaration every 1, 2, 6, or 12 months (depending on the applicable tax period). The reporting deadline is no later than the 25th day or the last working day of the month following the month in which the supplier's tax period ends. The deadlines for tax payment are the same as for filing the returns.
Useful links:
Social security contributions: South Africa does not have a comprehensive social security system or a national healthcare program; consequently, no social security taxes are levied on freelancers.
Turnover tax
Turnover tax is a simplified tax regime with a qualifying annual turnover of ZAR 1 million or less. One turnover tax payment replaces personal income tax, provisional tax, and VAT (but you can still be a VAT payer on a voluntary basis).
If you meet the requirements, you can register by filling out the application (in paper form or online) and submitting it before March 1 of the year. Learn more about the registration process
Taxpayers can deduct expenses related to their activities, for example:
Accounting and other professional services
Insurance premiums
Equipment and materials
Rental fees and utility bills for commercial premises (additionally, turnover tax payers who work from home can claim part of their personal rent/mortgage, utility bills, and other expenses as deductible)
Business travel
The turnover tax is calculated by applying the tax rate to the taxable turnover:
Taxable turnover, ZAR | Tax rate |
335,000 or less | 0% |
335,001–500,000 | 1% on each ZAR over 335,000 |
500,001–750,000 | 1,650 + 2% of the amount above 500,000 |
750,001 and up | 6,650 + 3% of the amount above 750,000 |
Taxpayers need to submit the TT03 Turnover Tax Return within the same period as income tax returns: between July 1 and January 31 of the following year.
You pay the tax online (or through internet banking) in 3 steps:
First payment of 15% – in the middle of the tax year (on the last working day of August) using the TT02 Payment Advice for Turnover Tax form.
Second payment of 65% – at the end of the tax year (on the last working day of February) using the TT02 Payment Advice for Turnover Tax form.
Final payment – after the annual TT03 Turnover Tax Return has been filed and processed (i.e., after January 31).
Useful links:
Additional info
All about taxes for individuals and small businesses.
Income received through Solar Staff is declared using certificates and invoices, and in accordance with the offer agreement.
If you have any questions, get in touch via the chat in your Solar Staff account or email us at [email protected].