The key tax elements for the current year are as follows:

 
1. INDIVIDUALS

The maximum marginal rate for natural persons is increased to 45% (previously 41%) and is applied to taxable income exceeding R1 500 000.

The primary rebates for natural persons have been increased marginally.

The tax free portion of interest income remains unchanged. The tax-free savings dispensation increases to R33 000 from R30 000 per tax year.

Local dividends tax is increased to 20% from 15%, effective 22 February 2017.

Foreign dividends are also to be taxed at a flat rate of 20%, but this may be reduced in terms of Double Tax Treaties.

 
2. COMPANIES AND CLOSE CORPORATIONS

The rate of normal tax remains at 28%.

 

3. TRUSTS

The flat rate increases to 45% from 41%.

 
4. INDIVIDUAL TAX THRESHOLDS

Liability for tax is as follows:
Under 65 years: R75 750
65 to 74 years: R117 300
75 years and older: R131 150
Contact us at 011 802 0220, or contact your financial adviser directly for more information
“We help clients achieve their financial objectives over the long term”
INCOME TAX – INDIVIDUALS

 

Taxable income (R) Rates of tax
0 – 189 880 18% of taxable income
189 881 – 296 540 R34 178 + 26% of taxable income above R189 880
296 541 – 410 460 R61 910 + 31% of taxable income above R296 540
410 461 – 555 600 R97 225 + 36% of taxable income above R410 460
555 601 – 708 310 R149 475 + 39% of taxable income above R555 600
708 311 – 1 500 000 R209 032 + 41% of taxable income above R708 310
1 500 001 and above R533 625 + 45% of taxable income above R1 500 000

 

The tax brackets have been adjusted by less than the rate of inflation, resulting in a “hidden” tax increase.

 
5. ESTATE DUTY AND DONATIONS TAX

The rate of estate duty and donations tax remains at 20%.

The estate duty abatement remains at R3.5 million per person.

 

The first R100 000 of amounts donated in each tax year by a natural person remains exempt from donations tax. Donations between spouses are fully exempt.

 

6. CAPITAL GAINS TAX (CGT)

The annual capital gain exclusion for individuals remains at R40 000.

 

The effective rate of CGT is the range of 7.2% to 18% for individuals, 22.4% for companies and 36% for Trusts.

 
7. VAT

The rate of 14% remains unchanged.

 
8. FOREIGN EXCHANGE

The offshore investment allowance remains at R10 million per adult person per calendar year. In addition the R1 million individual single discretionary allowance remains.

 
9. OTHER TAXES

Tax on alcohol and tobacco has been increase by 8-9%.

 

The fuel levy has been increased by 39 cents per litre.