Budget 2017 / 2018
The following is a summary of the tax related budget proposals announced by the Minister of Finance.
- New personal income tax bracket of 45% for taxable income above R1.5 million.
- All rebates and taxable income brackets amounts will increase by 1 per cent from 1 March 2017.
- Tax rate for trust other than special trusts has been increased to 45 %
- Dividends withholding tax rate increased to 20%
- The annual allowance for tax free savings accounts will be increased to R33 000
- Anti avoidance measures will be expanded to prevent taxpayers utilising companies as a conduct for low interest loans to trust.
- With respect to employer provided exempt bursaries, it is proposed to increase the income eligibility threshold for employees from R400 000 to R600 000, and the monetary limits for bursaries from R15 000 to R20 000 for education below NQF level 7, and from R40 000 to R60 000 for qualifications at NQF level 7 and above.
- The exemptions from income tax for employees working outside South Africa for more than 183 days a year is to e narrowed to only apply where the income is subject to tax in the foreign country.
- A30c/litre increase in the general fuel levy
- A9c/litre increase in the Road Accident Fund Levy.
- The duty-free threshold on purchases of residential property will be increased from R750 000 to R900 000, effective 1 March 2017.
- Sugar Tax to be implemented as soon as necessary legislation approved by Parliament.
- A revised Carbon Tax Bill will be published for public consultation and tabled in Parliament by mid-2017.
- Excise duties on alcoholic beverage and tobacco products will increase by between 6.1 per cent and 9 per cent.