South African Tax Spreadsheet Calculator 2017/ 2018

Based on the presentation by Finance Minister Pravin Gordhan on 22 February 2017, we have updated our South African Tax Spreadsheet Calculator 2017/ 2018. By using it you will get a sense of whether you will be paying more or less tax next year.

Summary: 
You will be paying more tax especially if you earn more that R1.5 milllion. 
If you have a company where you can decide how much to take in salary and how much in dividends, the most efficient looks like a salary of R1499000 and then the rest in dividends.

Similar to the South African Tax Tables for 2013-2014- spreadsheet calculator,the 2014-2015 version , 2015/ 2016 version, and 2016/2017 version it will allow you to enter your salary and calculate the taxes due. It also allows you to compare your taxes for this year to last year to see the potential impact.

To download the Tax Calculators subscribe to our newsletter at the bottom of this page. You are welcome to unsubscribe if we can’t help you but we guarantee that the Excel tips and tricks we provide will save you hours in your normal workday. See what the calculator can do below


How the South African Tax Spreadsheet Calculator 2017/ 2018 works

When you receive the spreadsheet download, you need to choose your age (for the relevant rebate) and enter your estimated salary for the current year as shown below.

South African Tax Spreadsheet Calculator 2016/ 2017
South African Tax Spreadsheet Calculator 2016/ 2017

For comparison purposes we have left in previous years tax calculations. You can either use the same salary as this year to see like on like impact on your earnings, or put in your actual salaries in those years.

Below the inputs you will see the results as shown below. It shows the breakdown by the various tax types, i.e. the fixed portion, the variable portion and the rebate allowed. At the bottom we have shown the effective tax rate and what it means on a monthly basis. Also shown are the previous years and the cells will change colour depending on whether it is good (green) or bad (reddish) for you.

South African Tax Spreadsheet Calculator 2016/ 2017
South African Tax Spreadsheet Calculator 2016/ 2017

Salary/ Dividends Mix Optimisation

Underneath the salary tax calculations (as per below) is a calculation to determine, where you have a company, what the correct mix of salary and dividends should be to give you the most effective tax rate.

You need to enter your company profit excluding your salary (1 below). Your salary is assumed to be the one you capture in the salary portion for the current year (2 below) so you do not need to enter it.

The spreadsheet then calculations the company tax and dividends withholding tax you need to pay and combines all three (PAYE, company tax and DWT) to determine your effective tax rate on your company profits.

In the adjacent section of the spreadsheet (after you press the F9 key) you will see at what level of salary your salary/ company tax is most efficient.

South African Tax Spreadsheet Calculator 2016/ 2017
South African Tax Spreadsheet Calculator 2016/ 2017

To download the Tax Calculators subscribe to our newsletter at the bottom of this page. You are welcome to unsubscribe if we can’t help you but we guarantee that the Excel tips and tricks we provide will save you hours in your normal workday. See what the calculator can do below