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

0174
550

Taxable
income (R)
Rates of tax

174
551272 700

R
31419+25% of the amount above R174 550

0181
900

18%
of each R1

272
701377 450

R
55957+ 30% of the amount above R272 700

181
901284 100

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

377
451528 000

R
87382 + 35% of the amount above R377 450

284
101393 200

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

528
001673 100

R
140074+ 38% of the amount above R528 000

393
201550 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
101701 300

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

0174
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
8000kilometre 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 delink them from the VAT
system effective 1 April 2016
l
Increase
in the energyefficient 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, taxfree 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 taxfree
