Author: Nyasha Musviba

rates of tax for individuals 2019 tax year (1 March 2018 – 28 February 2019) – see changes from last year ?Taxable income (R) ?Rates of tax (R) 0 – 195 850 18% of taxable income 195 851 – 305 850 35 253 + 26% of taxable income above 195 850 305 851 – 423 300 63 853 + 31% of taxable income above 305 850 423 301 – 555 600 100 263 + 36% of taxable income above 423 300 555 601 – 708 310 147 891 + 39% of taxable income above 555 600 708 311 – 1 500 000 207 448 + 41% of taxable income above 708 310 1 500 001 and above 532 041 + 45% of taxable income above 1 500 000 2018 tax year (1 March 2017 – 28 February 2018) ?Taxable income (R) ?Rates of tax (R) 0 – 189 880 18% Read More …

Overview South African Minister of Finance Malusi Gigaba delivered the 2018 Budget Speech and tax proposals today, 21 February 2018. Relatively few changes to existing tax rates were proposed. The remainder of the Budget includes proposals for further tax reform and amendments to take place during the course of the year. The most significant of these for corporate and high net worth clients are summarised below, as are the changes to existing tax rates. The full scope of proposed tax changes will be addressed once draft legislation is available.

Cape Town – The hike in value added tax (VAT) from 14% to 15% poses the risk of eroding the spending power of poor and lower-income households, exacerbating poverty and increasing inequality, according to the Corporate Strategy and Industrial Development (CSID) research unit at Wits University. VAT has contributed 24% to 27% of tax revenue in SA, and has been held constant at 14% since 1993. It explained that VAT is levied irrespective of how much somebody earns, making it a regressive tax and in its view, taxes on goods (VAT and excise duty) hit the poor the hardest.

Author: Lameez Omarjee. Cape Town – Although the higher VAT rate will be a challenge for household budgets, an analyst says it is the correct way for government to go about raising tax revenue. On Wednesday Finance Minister Malusi Gigaba announced in his budget speech that the VAT rate would increase one percentage point to 15%, as of April 1 2018. This is expected to raise an additional R22.9bn to help plug the tax revenue shortfall of R48.2bn.

Author: Jaco Leuvennink (Fin24). Cape Town – Although a cloud of political uncertainty hangs over his head, Finance Minister Malusi Gigaba’s budget presented to the National Assembly represents a fairly good balancing act in a difficult fiscal environment. The budget is a team effort. It is therefore once again probably a good testimonial to the sober and competent team of officials at the National Treasury, who produced the documentation. Gigaba himself described the budget as tough, but hopeful. This is probably a fair assessment.

Author: Daniel Silke. WHICHEVER way you look at it, Budget 2018 was always going to be punitive and it sure was. All South Africans, especially the poor, are being made to pay for both the excesses of the Zuma era as well as the failure to enact and enable growth-orientated economic policies. The rise in value-added tax (VAT) and fuel levies is largely an attack on the poor and presents a gamble for newly-elected President Cyril Ramaphosa as he seeks to revitalise his own political party ahead of the 2019 elections.

Author: Carin Smith (Fin24). Cape Town – The property market, which is fuelled by sentiment, and Budget 2018 on the back of the election of President Cyril Ramaphosa are expected to go a long way towards reaffirming investor confidence in real estate, according to Dr Andrew Golding, chief executive of the Pam Golding Property group. Golding said an interesting aspect of the Budget Speech is the proposal that some 195 000 government-owned properties with an estimated value of over R40bn would either be better used or sold in the short to medium term. This could unlock revenue as well as opportunities for property development and redevelopment.

Author: Jaco Leuvennink (Fin24.com). Cape Town – The government will raise an additional amount of R36bn in taxes in the coming fiscal year through an increase in the VAT rate to 15%, as well as below-inflation adjustments for personal income tax brackets. That means the government will collect more income tax, but does it mean you will pay more or less income tax in the next year? It all depends on increases in your salary over the next year. If your salary goes up, you will pay more, but if it stays the same, you will actually pay less. Looking at the tax tables, people earning from R85 000 to R150 000 per annum will pay R432 per year less income tax.

Cape Town – South Africans will be paying a higher rate of VAT for the first time since 1993 from April 1. Finance Minister Malusi Gigaba announced on Wednesday that the VAT rate will be increase by one percentage point from 14% to 15%, and is expected to raise an additional R22.9bn. Some basic food stuffs, as well as paraffin, will remain zero rated. The increase is part of tax policy proposals included in Gigabas maiden budget to raise R36bn in additional tax revenue for the 2018/2019 financial year.

Cape Town – The 2018 budget is an example of robbing the poor to buttress the rich and is anything but a Robin Hood budget, according to Anglican Archbishop Emeritus Njongonkulu Ndungane. The Archbishop said that far from taxing those who can afford to pay, the governments budget effectively robs the poor of any hope in the short term of improving their lot.