Understanding Tax Computation

Learn how ProcessX calculates your estimated tax liability.

Overview

ProcessX calculates an estimated income tax based on:

Your recorded income
Your recorded deductible expenses
Current SARS tax tables and rates

This helps you plan for tax payments and avoid surprises.

How Tax is Calculated

Step 1: Calculate Gross Income

Total of all income recorded in ProcessX for the tax year.

Step 2: Calculate Deductions

Total of all deductible expenses, including:

Business expenses
Home office deductions
Travel allowance deductions
Other allowable deductions

Step 3: Calculate Taxable Income

Taxable Income = Gross Income - Deductions

Step 4: Apply Tax Tables

SARS progressive tax rates are applied based on your taxable income bracket.

Step 5: Apply Rebates

Tax rebates reduce your tax payable:

Primary rebate (all taxpayers)
Secondary rebate (65+)
Tertiary rebate (75+)

South African Tax Tables (2024/2025)

Rates are progressive: you pay each rate only on income in that bracket.

Tax Rebates (2024/2025)

Example Calculation

Scenario:

Gross Income: R 500,000
Deductible Expenses: R 150,000
Age: Under 65

Calculation:

Taxable Income: R500,000 - R150,000 = R350,000

Tax on R350,000:
├── First R237,100 × 18%    = R42,678
├── Next R112,900 × 26%     = R29,354
                             ─────────
Gross Tax                   = R72,032

Less: Primary Rebate        = R17,235
                             ─────────
Tax Payable                 = R54,797

Viewing Your Tax Estimate

Go to Reports > Tax Computation

Select the tax year

View the detailed breakdown

ProcessX shows:

Your gross income
Deductions by category
Taxable income
Tax calculation steps
Final estimated tax

Tax Year in South Africa

The tax year runs from 1 March to 28/29 February.

Taxable Income	Tax Rate
R0 - R237,100	18%
R237,101 - R370,500	26%
R370,501 - R512,800	31%
R512,801 - R673,000	36%
R673,001 - R857,900	39%
R857,901 - R1,817,000	41%
Above R1,817,000	45%
Rebate Type	Amount
Primary (all taxpayers)	R17,235
Secondary (65+)	R9,444
Tertiary (75+)	R3,145
Tax Year	Period
2024/2025	1 Mar 2024 - 28 Feb 2025
2025/2026	1 Mar 2025 - 28 Feb 2026

Ensure you're viewing the correct tax year in ProcessX.

Provisional Tax

If you earn income not from a regular salary, you likely need to pay provisional tax:

First Payment

Due: End of August

Based on: Estimated annual taxable income

Second Payment

Due: End of February

Based on: Updated estimate

Third Payment (Top-up)

Due: 6 months after year-end

Optional: Pay any shortfall

ProcessX helps estimate these payments based on your year-to-date data.

Limitations

ProcessX provides estimates only. It may not account for:

Medical tax credits
Retirement fund contributions
Capital gains
Foreign income
Other complex tax situations

Always consult a tax professional for final calculations.

Reducing Your Tax

Legal ways to reduce tax:

Claim all deductions: Record every business expense

Retirement contributions: Tax-deductible up to limits

Medical aid: Credits for medical scheme fees

Home office: Claim if you qualify

Travel allowance: Proper logbook records

Last updated: March 2025