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In this year’s reading of the Annual Budget, the Minister of Finance continued to give back to South African Tax Payers … some R 12,4 billion.
There is something for everybody and these tax concessions will be distributed as follows:
Individual Tax:
Tax Relief – R 8,4 billion
- Adjustment to tax tables & rebates to offset fiscal drag resulting in tax payers under 65 not paying tax where earnings are less than R 43 000 and for those over 65, R 69 000.
- Tax Rebates Primary raised from R 7200 to R 7740 Secondary (65+) from R 4500 to R 4680
- Retirement Fund tax Reduced from 9% to 0% Will put money back into the pockets of Retirement Fund Members and should serve as an incentive to provide for own retirement provision
- Interest Exemption Under age 65 – increased from R16 500 to R 18 000 Age 65 plus – increased from R 24 500 to R 26 000
- Medical Aid Contributions Fixed amounts i.r.o. contributions have been increased from R 500 and R 300 per adult and dependant to R 530 and R 320 respectively
- Estate Duty Basic exemption increased from R 2,5 million to R 3,5 million
- Donations Tax Annual Exemption increased from R 50 000 to R 100 000
Income Tax Table
Maximum marginal rate now reached at R 450 001 as opposed to R 400 001
| Taxable Income (R) | Rates of Tax (R) | | 0 – 112 500 | 18% of each R1 | | 112 501 – 180 000 | 20 250 + 25% of the amount above 112 500 | | 180 001 – 250 000 | 37 125 + 30% of the amount above 180 000 | | 250 001 – 350 000 | 58 125 + 35% of the amount above 250 000 | | 350 001 – 450 000 | 93 125 + 38% of the amount above 350 000 | | 450 001 and above | 131 125 + 40% of the amount above 450 000 |
Company Tax
- Secondary Tax (STC) on Companies reduced from 12,5% to 10% w.e.f. 1 October 2007
- STC will be abolished and will be replaced by Withholding Tax on Dividends for shareholders in 2008
- Company tax rates remain unchanged at 29%
Excise Tax and Increase in Fuel Levy
As usual, those who travel by car from their local tobacconist to the bar - will continue to pay more for this privilege due to increase in Excise Tax and Increase in Fuel Levy. |
