Budget 2021……….Key Points for Investors:
All investment related taxes remained the same.
- Maximum marginal rate for natural persons remains at 45% (reached when taxable income exceeds R1 656 600).
- Minimum rate of tax 18% on taxable income not exceeding R216 200.
- Tax free portion of interest income is R23 800 for taxpayers under 65 years, and R34 500 for individuals over 65 years.
- Local dividend tax remains at a flat rate of 20%.
- Foreign dividends remains at 20% but may be reduced in terms of Double Tax Treaties.
Tax breaks:
You can invest 27.5% of your total income (salary plus other income) in retirement products every tax year and receive tax relief from SARS on these contributions. Contributions that enjoy tax relief are capped at R350 000 per year.
Tax free savings accounts: the contributions limit is R36 000 per tax year and R500 000 over the individual’s live.
Update on Tax and Investments: Endowments
This is an update from an earlier post Tax and Investments: Endowments posted on the 30th July, 2014.
The change, as per the 2016/17 budget is:
Capital Gains are taxed in the hands of the insurer at an effective ate of 12% for individual policy holders. There are no exclusions.
Source: SARS Tax Guide
Update on Tax and Investments
This is an update from an earlier post Tax and Investments posted on the 11th July, 2014.
The changes, as per the 2016/17 budget are:
Capital Gains is now an effective 16.4% if you are at the maximum rate of tax. Individuals are now allowed an annual exclusion of R40 000.
Source: SARS Tax Guide
Game over for Tax Dodgers?
Is it game over for tax dodgers? As Ingé Lamprecht reports for Moneyweb, there is virtually no place to hide as countries adopt a system of the automatic exchange of information. Click to read the article “Game over for Tax Dodgers?”
