Finance Minister Pravin Gordin delivered a tough budget for 2017/2018.
Some salient points:
- New top personal income tax bracket for taxpayers earning taxable income in excess of R1 500 000 per annum. The marginal rate in this bracket will be 45%.
- Introduction of the higher top tax bracket results in the maximum effective CGT rate increasing from 16.4% to 18%.
- Dividend withholding tax (DWT) is being increased from 15% to 20% effective 22 February, 2017.
- The general fuel levy will increase by 30c per litre and the Road Accident Fund fuel levy by 9c per litre, effective from 5 April, 2017.
- The annual tax- free savings allowance for natural persons is being increased from R30 000 to R33 000.
- The medical tax credits will be increased for the first two beneficiaries from R286 to R303 per month and for the remaining beneficiaries from R192 to R204 per month.
- The company tax rate remains unchanged at 28%.
Source: Momentum / Stanlib