The 2017 budget in a nutshell

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The 2017 budget in a nutshell:

VAT unchanged at 14%.
 
Individual tax brackets have changed, with the introduction of the new marginal rate of 45% (up from 41%)
 
Interest exemptions for individuals at R23 800 for under 65s and R34 500 for over 65s.

 

Individual tax thresholds are:

  • Under 65: R75 750
  • Over 65: R117 300
  • Over 75: R131 150

Trusts income tax rate increased to 45% (from 41%). The conduit principle is still in place.

Estate duty unchanged at 20% with the R3.5m basic deduction still allowed.

Dividends tax increased to 20% (from 15%).

Capital gains inclusion rates unchanged (percentage added to taxable income and taxed at the entity’s applicable income tax rate):

    • Natural persons: 40%
    • Companies and trusts: 80%

Company tax rate unchanged at 28%, with small adjustments to the Small Business Corporation tax brackets.

Donations tax unchanged at 20%. The difference between the official interest rate (currently 8%) and the interest rate charged to trusts will be subject to donations tax. The R100 000 annual exemption remains in place.

The transfer duty threshold is increased to R900 000 (from R750 000)

Retirement fund contributions up to the maximum of 27.5% of the higher of remuneration for PAYE purposes or taxable…