Example 1 – Community of property
Mr and Mrs Able (both under 65) are married out of community of property. They have
the following income and expenditure for the year ended 28 February 2022:
Mr Able Mrs Able
Income R R
Salary 200 000 70 000
Interest 24 800 13 000
Dividends (from South African companies) 10 000 2 000
Annuity from a trust 20 000
Rent from a small block of flats 80 000
Expenses
Pension contributions 16 000
RAF (retirement annuity fund) contributions 10 000 45 000
Assume that R26 000 of Mr Able’s contributions are deductible.
The total income for Mr Able is 200,000 + 24,800 + 10,000 + 20,000 + 80,000 = R334,800
The total income for Mrs Able is 70,000 + 13,000 + 2,000 + 20,000 = R105,000
The total expenses for Mr Able is 16,000 + 10,000 = R26,000
The total expenses for Mrs Able is 45,000
Therefore, the net income for Mr Able is R334,800 - R26,000 = R308,800
The net income for Mrs Able is R105,000 - R45,000 = R60,000
Mr Able will be responsible for paying tax on R308,800 as his net income and Mrs Able will be responsible for paying tax on R60,000 as her net income.