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BUDGET 2015

Once more, income tax rates have been adjusted across the board.

The following table illustrates the major changes that are proposed in the budget:

Personal income tax rate and bracket adjustments, 2014/15 and 2015/16  

2014/2015

2015/2016

0-174 550

Taxable income (R)   Rates of tax

174 551-272 700

R 31419+25% of the amount above R174 550

0-181 900

18% of each R1

272 701-377 450

R 55957+ 30% of the amount above R272 700

181 901-284 100

R 32 742+26% of the amount above R181 900

377 451-528 000                    

R 87382 + 35% of the amount above R377 450

284 101-393 200

R 59 314+ 31% of the amount above R284 100

528 001-673 100

R 140074+ 38% of the amount above R528 000

393 201-550 100                    

R 93 135 + 36% of the amount above R393 200

673 101 and above

R 195 212+ 40% of the amount above R673 100

550 101-701 300

R 146 619+ 39% of the amount above R550 1000

0-174 550

18% of each R1

701 301 and above

R 208 587+ 41% of the amount above R701 300

Rebates

 

Rebates

 

Primary

R12 726

Primary

R13 257

Secondary

R7 110

Secondary

R7 407

Tertiary

R2 367

Tertiary

R2 466

 

 

 

 

Below age 65

R  70 700

Below age 65

R  73 650

Age 65 and over

R 110 200

Age 65 and over

R 114 800

Age 75 and over

R123 350

Age 75 and over

R128 500

Tax free interest

No Change

No Change

 

Below age 65

R23 800

Below age 65

R23 800

Age 65 and over

R34 500

Age 65 and over

R34 500

 Despite the proposed introduction on 1 March 2015 of tax free savings vehicles, none of the explanatory memoranda make any mention of the abolition of the present interest exemptions above.          

 Medical Scheme Tax Credits

 For first two members                         R 270 (2014: R 257) per month

For each additional dependent           R 181 (2014: R 172) per month

 Turnover tax

 

2014/2015

 

2015/2016

Turnover

Rates of tax

Turnover

Rates of tax

R 0 R 150 000

0% of taxable turnover

R 0 R 335 000

0% of taxable turnover

R 150 001 R 300 000

1% of the amount above R 150 000

R 335 001 R 500 000

1% of the amount above          R 335 000

R 300 001 R 500 000

R 1 500 + 2% of the amount above R 300 000

R 500 001 R 750 000

 R 1 650 + 2% of the amount above R 500 000

R 500 001 R 750 000

R 5 500 + 4% of the amount above R 500 000

R 750 000 R 1 000 000

R 6 650 + 3% of the amount above R 750 000

R 750 000 R 1 000 000

R 15 500 + 6% of the amount above R 750 000

 

 

Travelling allowances

 There has been no change to the rates in the following table

Value of vehicle inc VAT (R)

Fixed cost (R p.a.)

Fuel cost (c/km)

Maintenance cost (c/km)

0 80 000

25 946

92.3

27.6

80 001 160 000

46 203

103.1

34.6

160 001 240 000

66 530

112.0

38.1

240 001 320 000

84 351

120.5

41.6

320 001 400 000

102 233

128.9

48.8

400 001 480 000

120997

147.9

57.3

480 001 560 000

139760

152.9

71.3

560 000 and above

139760

152.9

71.3

 The rate per kilometre in respect of reimbursive travel remains at 330c per kilometre. No change has been made to the annual 8000-kilometre limit.

However, a total of 80.5c/litre is to be added to fuel prices with effect from 1 April 2015.

Transfer duty

Value of property

Rate

R0 R750 000

0.00%

R750 001 R1 250 000

3% on the value above R750 000, but not

exceeding R1 250 000

R1 250 001 R1 750 000

R15 000 plus 6% on the value above

R1 250 000, but not exceeding R1 750 000

R1 750 001 R2 250 000

R45 000 plus 8% on the value above

R1 750 000, but not exceeding R2 250 000

R2 250 001 and above

R85 000 plus 11% on the value above

R2 250 000

Sin taxes

Product

Current rate

Proposed rate

Cigarettes pack of 20

R 11.60

R 13.94

Cigarette tobacco  per 50g

R 13.03

R 13.94

Pipe tobacco per 25g

R 3.63

R 3.89

Cigars 23g

R 61.87

R 64.96

Unfortified wine per litre

R 2.87

R 3.07

Fortified wine per litre

R 5.21

R 5.46

Sparkling wine per litre

R 9.11

R 9.75

Ciders and alcoholic fruit beverage per litre

R 3.45

R 3.65

Spirits per litre

R 137.54

R 149.23

Other proposals

l  An overhaul of the diesel refunds and to de-link them from the VAT system effective 1 April 2016

l  Increase in the energy-efficient savings tax incentive from 45c/kWh to 95c/ kWh

l  Increases in electricity levies

l  For taxpayers 65 years of age or older, or who are disabled or who have any disabled dependents, an additional medical tax credit will be given of an amount equal to the aggregate of:

     33.3% of the amount by which their contribution exceeds three times their tax credit (for  contributions), plus

      33.3% of their out of pocket expenses.

It is proposed that the additional tax credit afforded to employees who are 65 years and older with respect to their contributions to medical schemes may also be accounted for in the monthly PAYE calculations. It is likewise proposed that this facility will also be afforded to over 65 year old provisional taxpayers.

For taxpayers under the age of 65, the rate above of 33% is reduced to 25% and is applied to four times their tax credit. The deduction will be the aggregate of those two amounts less 7.5% of the individual's taxable income the concession relating to PAYE calculations and provisional taxpayers over 65 years will not apply.

l  The  threshold amount for Small Business Corporations has been increased to R73,650 in line with that of individual taxpayers

l  From 1 March, tax-free savings investments will be available from approved financial institutions. A taxpayer may invest up to R30,000  per year to a maximum of R500,000 in his/her lifetime. The returns generated including capital gains are completely tax free. Disinvestment may be made at any time.

l  Premiums in respect of income continuation policies will no longer be deductible. The benefits will be tax-free