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Gross Income

Generally, income is money or another asset received by someone in return for work (salaries / wages), providing a product or services (sales / fees), or providing capital (interest / dividends).

Gross income is a more specific concept. For something to be considered “gross income” it must meet the requirements of the definition of “gross income” in the Income Tax Act.

For a South African tax resident, “gross income” is the total amount, in cash or otherwise, received by or accrued to or in favour of such resident during such year of assessment but excluding receipts or accruals of a capital nature.

Elements:

  • total amount
  • cash or otherwise
  • received by or accrued to or in favour of
  • excluding receipts or accruals of a capital nature

An individual in South Africa’s gross income may consist of:

  • salaries and wages
  • interest on bank balances
  • dividend income
  • income earned from another source