South Africa’s tax system is determined by the laws that the Commissioner must administer. The Income Tax Act 58 of 1962, the VAT Act 89 of 1991 and the Customs Act 91 of 1964 are the most important of these. Every year, the Minister of Finance presents the Budget, which outlines the total government expenditure for the following financial year and the ways in which this expenditure will be financed. Recently the Tax Administration Act was introduced and this affects the way SARS deals with you the taxpayer. If you want to read more about the Tax Administration Act please follow the link. It has also brought about the establishment of a Tax Ombud.
South Africa has a residence-based 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. Foreign taxes are offset against South African tax payable on foreign income.