Don’t miss 28 February – by Samuel RossouwFebruary 19, 2015
Professional Adviser or Assurance AgentAugust 18, 2015
Highlights of the 2015 National Budget Speech
- The marginal rate of the tax brackets for all individuals earning more than R181 900 per year has been increased by 1%, the maximum marginal rate is therefore 41% (for persons earning more than R701 301 per year)
- The rates for VAT, Company Tax, and Capital Gains Tax has not been increased. However, a higher personal income rate implies that the effective Capital Gains Tax will increase to a maximum rate of 13.65% (up from 13.33%).
- The fuel levy has been increased by 80.5c. 5c will be used towards the general “fuel levy”, while 50c will be used for the funding of the Road Accident Fund. Tax on fuel is now 41% of the price (in line with that of first world countries).
- The electricity levy was raised from 3.5c/kWh to 5.5c/kWh (temporary).
- The Transfer Duty Tables has been updated. Property with a market value of below R750 000 will not be liable for transfer duty. A maximum rate of 11% will apply to all properties with a value of higher than R2 250 000.
- Sin taxes Increases
- 7c for beer (330ml)
- 19c for a bottle of wine
- 377c for a bottle of spirits
- 82c for a packet of cigarettes
- NEW: Tax Free savings Account applicable from the 1st of March (Please refer to the latest 2 Cents).
- The annual offshore allowance has been increased from R 4 million to R 10 million (R 20 million per family).
- UIF Contributions has been capped at a maximum amount of R 10 per employee and employer.
- Personal Income Tax (36%) and VAT (26%) are the biggest contributors to the income of the state.
- Education (20%) and Local Development (15%) are the biggest expenses on the state’s budget.
Disclaimer: Although all possible care was taken in the drafting of this document, the factual correctness of the information contained herein cannot be guaranteed. This document does not constitute advice and anyone planning on taking any financial action based on this document, is strongly advised to first consult with their personal financial advisor. ProVérte Wealth Management is an authorised financial service provider with FSP no. 5966.