by Tobias | 28.Feb.2017 | News
Individual Tax: A super tax bracket of 45% has been introduced for individuals with a taxable income of more than R1 500 000. Middle class individuals earning between R500 000 and R1.5 million should be most upset as Treasury did little to adjust the tax tables for inflation. The effect is that they will pay R12 billion more than if the brackets had been adjusted to fully accommodate inflation. Capital Gains Tax: Capital gains inclusion rates remain at 40% for individuals and 80% for companies and trusts. With the introduction of the super tax bracket of 45%, the maximum effective capital gains tax rates are now as follows: Individuals 18% (previously 16.4%) Companies 22.4% (remained the same) Trusts 36% (previously 32.4%) The annual exclusion remains R40 000 and at death R300 000. Dividend withholding tax: Dividend Withholding Tax increases from 15% to 20%, thus a substantial increase of 33.34%. This increase is effective from 22 February 2017. Company taxes: Small changes were made to the tax brackets of small businesses while the rates of other companies remained the same at 28%. Trusts: Trusts, excluding special trusts, will be taxed at a flat rate of 45%. Transfer Duty: Treasury provided relief in the affordable housing market through an increase in the threshold above which transfer duty is paid from R750 000 to R900 000. This means that no transfer duty will be payable on a property to the value of R900 000 or less. Estate Duty: Although an increase in the estate duty rate of 20% to at least...
