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BUDGET 2017

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:

2016/2017

2017/2018

Taxable income (R)   Rates of tax

                Taxable income (R)   Rates of tax

           0-188 000

18% of each R1

           0-189 880

18% of each R1

188 001-293 600

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

189 881-296 540

R 34 178+26% of the amount above R189 880

293 601-406 400

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

296 541-410 460

R 61 910+ 31% of the amount above R296 540

406 401-550 100                    

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

410 461-555 600                    

R 97 225 + 36% of the amount above R410 460

550 101-701 300

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

555 601-708 310

R 149 475+ 39% of the amount above R555 600

701 301 and above

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

708 311 1 500 000

R 209 032+ 41% of the amount above R708 310

 

 

1 500 001 and above

R 533 625 + 45% of the amount above 1 500 000

Rebates

 

Rebates

 

Primary

R13 500

Primary

R13 635

Secondary

R7 407

Secondary

R7 479

Tertiary

R2 466

Tertiary

R2 493

Thresholds

 

Thresholds

 

Below age 65

R   75 000

Below age 65

R   75 750

Age 65 and over

R 116 150

Age 65 and over

R 117 300

Age 75 and over

R129 850

Age 75 and over

R131 150

Interest Exemption

 

Interest Exemption

 

Below age 65

R23 800

Below age 65

R23 800

Age 65 and over

R34 500

Age 65 and over

R34 500

 

 

Persons who have been absent

from SA for 181 days during the 12 month period before interest accrues

Exempt

Medical Scheme Tax Credits

For first two members                         R 303 (2017: R 286) per month

For each additional dependent           R 204 (2017: R 192) per month

Additional                                           Unchanged

Turnover tax for Small Business Corporations

 

2016/2017

 

2017/2018

Taxable Income

Rates of tax

Taxable Income

Rates of tax

R 0 R 75 000

0% of taxable income

R 0 R 75 750

0% of taxable income

R 75 001 R 365 000

7% of the amount above R 75 000

R 75 751 R 365 000

7% of the amount above

R 75 750

R 365 001 R 550 000

 R 20 300 + 21% of the amount above R 365 000

R 365 001 R 550 000

 R 20 248 + 21% of the amount above R 365 000

R 550 001 and above

R 59 150 + 28% of the amount above R 550 000

R 550 001 and above

R 59 098 + 28% of the amount above R 550 000

Transfer duty

Value of property

Rate

R0 R900 000

0.00%

R900 001 R1 250 000

3% on the value above R900 000,

R1 250 001 R1 750 000

R10 500 plus 6% on the value above

R1 250 000

R1 750 001 R2 250 000

R40 500 plus 8% on the value above

R1 750 000

R2 250 001 R 10 000 000

R80 500 plus 11% on the value above

R2 250 000

R 10 000 001 and above

R933 000 plus 13% on the value above

R 10 000 000

Sin taxes

Product

Current rate

Proposed rate

Increase to current prices

Cigarettes pack of 20

R 13.24

R 14.30

R 1.06

Cigarette tobacco  per 50g

R 14.88

R 16.07

R 1.19

Pipe tobacco per 25g

R 4.16

R 4.56

R 0.40

Cigars 23g

R 69.28

R 75.86

R 6.85

Unfortified wine per litre

R 3.31

R 3.61

R 0.306

Fortified wine per litre

R 5.82

R 6.17

R 0.346

Sparkling wine per litre

R 10.54

R 11.46

R 0.933

Ciders and alcoholic fruit beverage per litre

R 79.26

R 86.39

R 0.12

Spirits per litre of absolute alcohol

R 161.47

R 175.19

R 5.906

Travelling allowances

Value of vehicle (including VAT) (R)

Fixed Cost

     (R p.a.)

Fuel cost

    (c/km)

Maintenance cost

                 (c/km)

0 85 000

28 492

91.2

32.9

85 001 170 000

50 924

101.8

41.2

170 001 255 000

73 427

110.6

45.4

255 001 340 000

93 267

118.9

49.6

340 001 425 000

113 179

127.2

58.2

425 001 510 000

134 035

146.0

68.4

510 001 595 000

154 879

150.9

84.9

Exceeding 595 000

154 879

150.9

84.9

 Other proposals

 n   Subsistence allowance with RSA Meals and incidental costs R 397/day. Incidental costs only R 122/day

n  Dividend withholding tax 20% (2017:15%)

n  Reimbursive travel allowance R 3.55/km up to maximum of  12 000 kms (2017: 3.29/km up to maximum of 8 000 kms)

n  An increase in the combined fuel and RAF levy of 39 cents per litre     

n  Clarity on carbon tax to be provided by end of 2017

n  A 2.1c/gram for sugar content in excess of 4 grams/100 ml of sweetened beverages will be introduced upon enactment.