BUDGET 2016
Introduction
Once
more, income tax brackets have changed as have rates in all but
the top two brackets.
The
following table illustrates the major changes that are proposed
in the budget:
2015/2016

2016/2017

Taxable
income (R)
Rates of tax

Taxable income (R)
Rates of tax

0181
900

18%
of each R1

0188
000

18%
of each R1

181
901284 100

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

188
001293 600

R
33 840+26% of the amount above R188 000

284
101393 200

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

293
601406 400

R
61 296+ 31% of the amount above R293 600

393
201550 100

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

406
401550 100

R
96 264 + 36% of the amount above R406 400

550
101701 300

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

550
101701 300

R
147 996+ 39% of the amount above R550 1000

701
301 and above

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

701
301 and above

R
206 964+ 41% of the amount above R701 300

Rebates


Rebates


Primary

R13
257

Primary

R13
500

Secondary

R7
407

Secondary

R7
407

Tertiary

R2
466

Tertiary

R2
466

Thresholds


Thresholds


Below
age 65

R
73 650

Below
age 65

R
75 000

Age
65 and over

R
114 800

Age
65 and over

R
116 150

Age
75 and over

R128
500

Age
75 and over

R129
850

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

Medical Scheme Tax Credits
For first two members
R 286 (2015: R 270) per month
For each additional dependent
R 192 (2015: R 181) per month
Turnover tax for micro business

2015/2016


2016/2017

Turnover

Rates of tax

Turnover

Rates of tax

R
0 – R 335 000

0% of taxable turnover

R
0 – R 335 000

0% of taxable turnover

R
335 001 – R 500 000

1% of the amount above R 335 000

R
335 001 – R 500 000

1% of the amount above R 335 000

R
500 001 – R 750 000

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

R
500 001 – R 750 000

R 1 650 +
2% 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 and
above

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

In our experience, very
little use has been made of this method of taxation.
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 
R10 000 000

R85 000 plus 11% on the value above
R2 250 000



R10 000 000 and above

R937 500 plus 13% on the value above
R 10 000 000

Sin
taxes
Product

Current rate

Proposed rate

Cigarettes
– pack of 20

R
13.94

R
14.76

Cigarette
tobacco per 50g

R
13.94

R
14.88

Pipe
tobacco per 25g

R
3.89

R
4.16

Cigars
– 23g

R
64.96

R
69.28

Unfortified
wine per litre

R
3.07

R
3.31

Fortified
wine per litre

R
5.46

R
5.82

Sparkling
wine per litre

R
9.75

R
10.54

Ciders
and alcoholic fruit beverage per litre

R
3.65

R
3.97

Spirits
per litre

R
149.23

R
154.48

Other
proposal
n
A tyre levy of R 2.30 per
kilogram of tyre mass. This will filter down to all sectors of the
population. Effective 1 October 2016
n
An increase in the incandescent
globe tax from R 4 to R 6 per globe. Effective 1 April 2016
n
An increase in plastic bag levy
from 6 cents to 8 cents per bag. Effective 1 April 2016
n
An increase in the fuel levy of 30
cents per litre. Effective 1 April 2016
n
An increase in the motor emissions
tax. Effective 1 April 2016
n
Effective 1 April 2017, a method of
taxing sugar sweetened beverages will be introduced.
n
The inclusion rate for capital gains
is to be introduced. After deducting the increase annual exclusion
of R 40000,
individuals will have to include 40% (previously 33.3%) of the
gain in their taxable incomes. This will equate an effective rate
of 16.4% for those in the maximum tax bracket. Companies and,
although not specifically mentioned, trusts will be subjected to
an 80% inclusion rate. This will equate to an effective rate of
22.4%.
n
Increasing tax collections in each of
the next two tax years. No details of how this will be achieved
have been announced.
n
A voluntary disclosure whereby, for a
limited period of six months, noncompliant taxpayers can disclose
their offshore assets and income without fear of prosecution or
penalties. It will be interesting to see the details of how this
will be implemented and monitored. 