<P> Three provinces, Gauteng, the Western Cape, and KwaZulu - Natal was the source of 78% of total tax assessed in 2013 . </P> <P> Direct taxes are taxes which are imposed on individuals, trusts, deceased estates, companies and close corporations; all of whom are otherwise known as persons . </P> <P> South Africa has a progressive income taxation system which is based on the premise that the wealthy should contribute a greater proportion towards supporting the State than the poor . This means that the more a person earns the higher percentage tax they pay . By law all employers have to register all employees as taxpayers regardless of their tax liability . In terms of individual income tax South Africans pay the 31st highest average income tax rate in the world . </P> <P> Income tax in South Africa was first introduced in 1914 with the introduction of the Income Tax Act No 28, an act that had its origins in the New South Wales Act of 1895 . The act has gone through numerous amendments with the act presently in force is the Income Tax Act No 58 of 1962 which contains provisions for four different types of income tax . These four types of tax are: </P>

Who is exempt from paying income tax in south africa