2016-03-08
How am I affected? The highlights
(Note that these are proposals, subject to final legislation. The effect on revenue collections is shown in brackets)
NEW TAX TABLES 2016/2017 (INDIVIDUALS AND TRUSTS) | |
Taxable Income (Individuals and Special Trusts) | Tax |
R0 – R188 000 | 18% of taxable income |
R188 001 – R293 600 | 33 840 + 26% of amount above R188 000 |
R293 601 – R406 400 | R61 296 + 31% of the amount above R293 600 |
R406 401 – R550 100 | R96 264 + R36% of the amount above R405 400 |
R550 101 – R701 300 | R147 996 + 39% of the amount above R550 100 |
R701 301 and above | R206 964 + 41% of the amount above R701 300 |
Trusts other than Special Trusts | 41% of taxable income |
NOTES TO THE NEW TAX TABLES | ||
|
2016/17 |
CHANGES FROM LAST YEAR |
Rebates |
|
|
Persons under 65 |
R13 500 |
Increased by R243 |
Secondary (Age 65 to below 75) - total rebate |
R20 907 |
Increased by R243 |
Tertiary (Age 75 and older) - total rebate |
R23 373 |
Increased by R243 |
Tax Thresholds |
|
|
Persons under 65 |
R75 000 |
Increased by R1 350 |
Secondary (Persons 65 to below 75) |
R116 150 |
Increased by R1 350 |
Tertiary (Persons 75 and older) |
R129 850 |
Increased by R1 350 |
Interest Exemption |
|
|
Persons under 65 |
R23 800 |
No change |
Persons 65 and older |
R34 500 |
No change |
Dividends |
|
|
Taxed at 15% |
No change |
No change |
Medical Aid Tax Credits per beneficiary |
|
|
First two beneficiaries |
R286 p.m. each |
Increased R16 |
Third and more |
R192 p.m. each |
Increased R11 |
Business Travel - Tax free |
|
|
Up to 8,000 kilometres per annum |
R3.29 per km |
Increased by 11 cents per km |
Travel Allowance |
|
|
Travel allowance still taxable at 80% |
No change |
No change |
(Logbook compulsory) |
|
|
Other Taxes |
|
|
Capital Gains Tax - Individuals/Special Trusts* |
16.4% |
Increase of 2.75% |
Capital Gains Tax - Companies |
22.4% |
Increase of 3.8% |
Capital Gains Tax - Trusts* |
32.8% |
Increase of 5.49% |
Fuel Levy |
|
Increases by 30 cents a litre |
Cigarettes |
|
Increases by 82 cents per packet of 20 |
Wine (Unfortified) |
|
Increases by 18 cents a 750 ml bottle |
Spirits |
|
Increases by R3.94 a 750 ml bottle |
Beer |
|
Increases by 11 cents a 340 ml bottle |
* Represents the maximum effective rate of Capital Gains Tax |
TRANSFER DUTY RATE ADJUSTMENTS 2016/2017 |
|
Property value (R) |
Rates of tax |
R0 - R750 000 |
0% of property value |
R750 001 - R1 250 000 |
3% of property value above R750 000 |
R1 250, 001 - R1 750 000 |
R15 000 + 6% of property value above R1 250 000 |
R1 750 001 - R2 250 000 |
R45 000 + 8% of property value above R1 750,000 |
R2 250 001 - R10 000 000 |
R85 000 + 11% of property value above R2 250 000 |
R10 000 001 + |
R937 500 + 13% of property value above R10 000 000 |
Table compliments of GhostDigest |
Since “Nenegate†in December, the country has been fearful of a Rating Agencies’ downgrade which would put the nation’s debt at junk status. This would force all foreign bond holders to sell their bonds, ushering in another Rand crash and almost certainly a recession. The country was thus looking to Finance Minister Gordhan to resolve this.
In essence, the ratings agencies were looking for two things: