Back to Back Issues Page

March 02, 2016

Budget Speech


Welcome to all our new newsletter subscribers. I am always overwhelmed to see all the new "faces". Hope to meet you in person and share a cup of coffee some time soon!

Below some of the highlights of the budget speech for 2016. I will keep it short and sweet, to prevent you getting bored of all the figures :)

1. PERSONAL INCOME TAX TABLES FOR THE YEAR ENDING 28 FEBRUARY 2017.

Click on this link for the complete income tax tables

2. SMALL BUSINESS CORPORATION TAX RATES

Click on this link for the complete small business corporation tax tables

3. DEDUCTIONS - RETIREMENT FUND CONTRIBUTIONS

The formula changed to a deduction up to 27.50% of the greater of :

- Taxable income

OR

- Remuneration as calculated for PAYE purposes

The deduction is limited to R 350,000 per annum. Any amounts that exceed the allowable deduction will be carried over to the following tax year. 4. MEDICAL TAX CREDITS

Medical tax credits increased as follow:

- R 286 per month for the main members making the medical aid contribution

- R 286 per month for the first dependent

- R 192 per month for every additional dependent

5. INTEREST EXEMPTIONS

Interest exemptions are as follow:

- R 23,800 per annum (individuals younger than 65 years old)

- R 34,500 per annum (individuals 65 years and older)

6. CAPITAL GAINS TAX

It has been proposed that capital gains will be increased dramatically to the following inclusive rates:

- Individuals - 40%

- Companies - 80%

The annual exclusions:

- First R 40,000 tax free - First R 2 million capital gain is tax free with the disposal of a primary residence.

All the best wishes! Yours in tax

Jasper Basson CEO Dryk Holdings Team




Contact us for all your accounting, tax and tender needs


www.dryk-holdings.com


Contact us


Keep your tax clearance certificate up to date


Back to Back Issues Page