Category: Budget 2014/15

The 2014 Budget produced few surprises. There were no changes to the corporate or personal income tax rates, capital gains tax inclusion rates or the VAT rate. The robustness of revenue collections, almost in line with the 2013 forecast, probably played a part in enabling the Minister to keep rates steady. The most significant changes are: The introduction of tax-preferred savings accounts. The initial contribution limits are very low, at R30 000 per annum, with a lifetime contribution limit of R500 000. This was announced at last year’s budget.

Author: Stephen Craston ONE of the biggest bits of good news in this year’s budget is for those who are facing retirement. Most pensioners take a lump sum of one-third of their accumulated capital when they retire. The tax-free threshold for these lump sums has been increased from R315000 to R500000. Special national treasury adviser David McCarthy says it is inequitable that the lower-paid, who did not benefit from a tax deduction as they weren’t paying income tax, should have to pay tax on their lump sums. The wealthier will benefit as well, as the top rate of 36% now kicks in at R1,05m, up from R945000 in the past financial year. Government has also reduced tax on lump sums taken before retirement, with tax kicking in at R25000, up from R22500.

Author: Chantelle Benjamin High and low earners also found some cheer in a budget focused on stimulating growth.  “We are dying here. It’s very hard for a small ­business to get funding or deal with the red tape,” one desperate small business owner said at a small, medium and micro enterprise (SMME) conference in Sandton a month ago — a plea that was heard by the government in the latest budget. Based on early recommendations by the Judge Dennis Davis committee looking into the present tax regime, efforts have been made to reduce the tax burden on micro enterprises and to reduce the complexity of compliance.

Author: ENS The minister of finance read the budget speech on the 26th of February. It covers both immediate changes to the tax regime that will receive attention over the coming 1 or 2 years. In general terms, the current and future proposals are very modest in their scope and this could be regarded as the most low-key set of tax proposals to have been put forward for many years, at least from a technical perspective. It is noteworthy that the maximum marginal tax rates applicable to individuals, trusts, companies and dividends remain unchanged. Business Third party backed shares – Several changes are proposed in relation to the tax treatment of third party backed shares. In general terms these relax the hurdles which the taxpayer must overcome to avoid falling foul of the anti-avoidance rules (which re-characterise dividends as interest). Briefly, the changes affect the re-financing of such shares; or Read More …

Finance Minister Pravin Gordhan delivered his 2014 Budget Speech on 26 February 2014. While we did not anticipate major Tax changes in the current year, the complexity and challenges of the existing Tax environment means that it is time for Tax to be a board room level topic again.

Cape Town – Consumers still trying to enjoy a few small pleasures in life would have to dig a bit deeper into their pockets once again. Excise duties on alcoholic beverages (especially beer, sparkling wine and spirits) will increase by between 6.2% and 12%. Finance Minister Pravin Gordhan, did, however, think it in order not to increase the excise duty on traditional African beer or beer powder. Consumers who like to take a smoke break, will have to cough up 68 cents per packet of 20 cigarettes more from now on, while those enjoying the luxury of a cigar will pay R5.11 more per 23g.

Cape Town – Income tax relief of R9.3bn and massive future spending on social grants are among the main features of this year’s pre-election budget. Other highlights include a budget deficit that is expected to narrow to 2.8% of GDP by 2016/17, supporting a stabilisation of debt at 44.3% of GDP. Tabling his 2014 Budget in the National Assembly on Wednesday, Finance Minister Pravin Gordhan told MPs he expected a budget deficit of four percent of GDP for this year and next (2014/15). Tax revenue this year (2013/14) was expected to be R1bn higher than projected in the 2013 budget. Gordhan said real growth in non-interest spending should average 1.9% over the next three years. A spending ceiling committed government to a cap of R1.03trn in 2014/15, R1.11trn in 2015/16, and R1.18trn in 2016/17.

Cape Town - Finance Minister Pravin Gordhan has tabled his fifth and probably last National Budget in Parliament, strongly emphasising acceleration of economic growth to the National Development Plan’s goal of economic growth of between 5% and 6% as he kept spending under control and still surprisingly had room for some personal tax relief (especially for lower income earners). It is  a conservative budget with no big surprise. It will probably please most people with the coming elections in May in mind. The highlights are:

Carien du Plessis @carienduplessis #budget2014 26 February 2014 14:17 Rather than just “make a noise” about implementing the National Development Plan (NDP), government has put it in the budget, Finance Minister Pravin Gordhan has said. When reporters asked him about the NDP this morning ahead of his budget vote in Parliament, Gordhan said “the proof is in the book”. The budget review he tabled sported a long list of “NDP critical actions” and explanations on how these were being funded or implemented.

By Carien du Plessis@carienduplessis#budget2014 26 February 2014 14:02 Drowning in budget facts? Carien du Plessis compiles a list of what you should know. 1. The budget is R1.25 trillion. R1.1 trillion of that is noninterest spending, and it will grow to R1.6 trillion in 2016/7 (by 2%). 2. Sin taxes, as always, are going up. For example, a can of 340ml beer will cost 9c more, cigarettes are up 68c for a pack of 20 and whiskey is up by R4.80 per bottle. Tax on traditional beer will not go up. It’s a steal adding only 7.82c to the cost of a litre.