With the fiscal year-end for individuals on 29 February 2017, it is useful at this stage to be reminded of the various tax rates applicable for the 2017 tax year. These are set out in the Rates and Monetary Amounts and Amendment of Revenue Laws Bill dated 24 February 2016. (to the extent that these rates were amended).
Below we set out some of the more relevant rates and tables that may be applicable to our clients.
Income tax rates for individuals for the 2016/2017 tax year:
Interest Exemptions from Income Tax:
Medical credits available to be deducted against an income tax liability:
The following rebates will apply for individuals against their tax liability calculated in accordance with the above:
Cumulative Rebates from Income Tax for Individuals:
Income Tax for companies is levied at 28% and 41% in the case of trusts.
Small Business Corporations are not taxed at a flat rate of 28%, but according to the below table for tax years ending between 1 April 2016 and 31 March 2017:
The VAT rate is retained at 14%. The same applies to donations tax and estate duty, both still levied at 20%.Capital gains tax is calculated by including 40% of an individual’s net capital gains (less R40,000 exemption) in their taxable income to be used for calculating their income tax liability (see table above). The inclusion rate for ordinary trusts and companies is 80%.
Transfer duty applicable to individuals:
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)Turnover tax rates: