South Africa has a residence-based tax system, which means residents are – subject to certain exclusions – taxed on their worldwide income, irrespective of where their income was earned.

Non-residents are, however, taxed on their income from a South African source, but subject to the provisions of international agreements for the avoidance of double tax.

Most of the state’s income is derived from income tax, although nearly a third of total revenue from government taxes comes from indirect taxes, primarily value-added tax.