Tax Table

  • Tax Table

Normal rates of tax payable by natural persons for the year ended 28 February 2017
[table td1=”Taxable income ” td2=”Rates of tax “] [td1] R 0- R 188 000[/td1] [td2] +18% of each R1 [/td2] [td1] R 188 001 – R 293 600[/td1] [td2] R 33 840 + 26% of the amount above R 188 000 [/td2] [td1]R 293 601 – R 406 400 [/td1] [td2] R 61 296 + 31% of the amount above R 293 600 [/td2] [td1] R 406 401 – R 550 100 [/td1] [td2] R 96 264 + 36% of the amount above R 406 400 [/td2] [td1] R 550 101 – R 701 300 [/td1] [td2] R 147 996 + 39% of the amount above R 550 100 [/td2] [td1]R 701 301 and above [/td1] [td2] R 206 964 + 41% of the amount above R 701 300 [/td2] [/table]

Normal rates of tax payable by natural persons for the year ended 28 February 2016
[table td1=”Taxable income ” td2=”Rates of tax “] [td1] R 0- R 181 900[/td1] [td2] +18% of each R1 [/td2] [td1] R 181 901 – R 284 100[/td1] [td2] R 32 742 + 26% of the amount above R 181 900 [/td2] [td1]R 284 101 – R 393 200 [/td1] [td2] R 59 314 + 31% of the amount above R 284 100 [/td2] [td1] R 393 201 – R 550 100 [/td1] [td2] R 93 135 + 36% of the amount above R 393 200 [/td2] [td1] R 550 101 – R 701 300 [/td1] [td2] R 149 619 + 39% of the amount above R 550 100 [/td2] [td1]R 701 301 and above [/td1] [td2] R 208 587 + 41% of the amount above R 701 300 [/td2] [/table]

Normal rates of tax payable by natural persons for the year ended 28 February 2015
[table td1=”Taxable income ” td2=”Rates of tax “] [td1] R 0- R 174 550[/td1] [td2] +18% of each R1 [/td2] [td1] R 174 551 – R 272 700[/td1] [td2] R 31 419 + 25% of the amount above R 174 550 [/td2] [td1]R 272 701 – R 377 450 [/td1] [td2] R 55 957 + 30% of the amount above R 272 700 [/td2] [td1] R 377 451 – R 528 000 [/td1] [td2] R 87 382 + 35% of the amount above R 377 450 [/td2] [td1] R 528 001 – R 673 100 [/td1] [td2] R 140 074 + 38% of the amount above R 528 000 [/td2] [td1]R 673 101 and above [/td1] [td2] R 195 212 + 40% of the amount above R 673 100 [/td2] [/table]

Rebates 2017:

Primary R 13 500.00

Secondary R 7 407.00 ( Persons 65 and older )

Tertiary R 2 466.00 ( Persons 75 and older )

Tax thresholds 2017:

Below age 65 R 75 000.00

Age 65 to below 75 R 116 150.00

Age 75 and over R 129 850.00

Interest Exemptions 2017:

Below age 65 R 23 800.00

Age 65 and above R 34 500.00

TRANSFER DUTY 2017

Transfer duty is calculated as follows:

R 0 – R 750 000.00 : 0%

R 750 001.00 – R 1 250 000.00 : 3% of the value above R 750 000.00

R 1 250 001.00 – R 1 750 000.00 : R 15 000.00 plus 6 % of the value above R 1 250 000.00

R 1 750 001.00 – R 2 250 000.00 : R 45 000.00 plus 8 % of the value above R 1 750 000.00

R 2 250 001.00 – R 10 000 000.00: R 85 000.00  plus 11 % of the value above R 2 250 000.00

R 10 000 000.00 and above: R 937 500.00 plus 13% of the value over R 10 000 000.00

EXEMPTIONS

The most notable exemptions from transfer duty are the following:

  • If the purchase price/value is R 750 000.00 or less.
  • If the transaction is subject to VAT ( i.e. where the seller is a VAT vendor ).
  • In the event of immovable property being transferred to a person ( including a close corporation, company or trust ), in terms of a Last Will and Testament, or as a result of intestate succession.
  • The transfer of any property to a surviving spouse, or divorced person, who acquires sole ownership of the whole or any portion of property registered in the name of his or her deceased or divorced spouse where that property or portion is transferred to that surviving or divorced spouse as a result of the death of his or her spouse or dissolution of the marriage or union.

CAPITAL GAINS TAX

Capital Gains Tax is payable on the disposal of assets that take place on or after 1 October 2001. In the case of South African residents the tax will apply to disposals of all assets, including overseas assets, and in the case of non-residents immovable property and any asset of a permanent establishment through which a trade is carried on in South Africa.

Capital gain on an asset disposed of is the amount by which the proceeds of the asset exceed the base cost thereof.

The following exemptions for individuals are applicable:
Annual exclusion- R 40 000.00
Exclusion on death- R 300 000.00
Primary residence exclusion- R2 million

The taxable gain is included in taxable income and taxed at the normal income tax rates applicable.

EMPLOYMENT TAX INCENTIVE

The employment tax incentive was instituted in order to encourage employment creation for the youth (18 to 29 years).

If an employer is eligible to receive the employment tax incentive in respect of a qualifying employee in respect of a month, that employer may reduce the employees’ tax payable by that employer with the amount of the incentive.

An employee is a qualifying employee if the employee –

1. is not less than 18 years and not more than 29 years old;

2. is employed by an employer with a fixed place of business located within a special economic zone;

3. is in possession of an identity card or is in possession of an asylum seeker permit;

4. in relation to an employer is not a connected person;

5. is not a domestic worker;

6. was employed by the employer on or after 1 October 2013; and

7. does not earn more than R 6 000.00 per month.

The amount of the employment tax incentive in respect of a qualifying employee is determined as follows:

During each month of the first 12 months, 50 percent of the monthly remuneration of the employee if the employee’s remuneration is R 2 000.00 or less, R 1 000.00 if the employee’s remuneration is more than R 2 000.00 but less than R 4 001.00, according to a prescribed formula if the employee’s remuneration is more than R 4 000.00 but less than R 6 000.00.