BUDGET SPEECH 2013/2014

The budget speech for 2013/2014 held a few new proposals, including the following:

1. Tax clearance certificates

An automated tax clearance system will be implemented this year.

2. Small Business Corporations

Simplified tax requirements has been proposed, and the turnover threshold will increase from R 14m to R 20m.

3. Retirement savings reforms

Individuals will be be allowed to deduct up to 27.5% of the higher of taxable income or employment income for contributions to pension, provident and retirement annuity funds with a maximum annual deduction of R 350,000.

4. Trusts

The tax treatment regarding the distibution of income and capital gains from Trusts will be reviewed

5. Tax thresholds

Individuals under age 65 R 67,111 Individuals 65 and under age 75 R 104,611 Individuals age 75 and older R 117,111

6. Interest exemption

Individuals under age 65 R 23,800 Individuals age 75 and older R 34,500 As from 01/03/2012 the foreign interest and dividend exemption falls away.

Tax guide 2013/2014