Budget 2016 | Highlights

Download the SARS Budget Tax Guide for 2016 (Year of assessment: 1 March 2016 – 28 February 2017)

  • Personal income tax relief of R5.65 billion
  • Capital gains tax inclusion rate for individuals, special trusts and insurers’ individual policyholder funds increases from 33.3% to 40%, and for other taxpayers from 66.6% to 80%
  • Annual exclusion of R40 000 (previously R30 000) capital gain or capital loss is granted to individuals and special trusts
  • Assets transferred through a loan to a trust are to be included in the estate of the founder at death and interest-free loans to trusts are to be treated as donations
  • General fuel levy increases by 30 cents per litre on 6 April 2016
  • Excise duties on alcoholic beverages increase by between 6.7% and 8.5%
  • From 1 April 2016 the plastic bag levy is to increase from 6 cents to 8 cents per bag and the incandescent globe tax will Increase from R4 to R6 per globe
  • A tyre levy at R2.30 per kilogram is to be introduced on 1 October 2016 and a tax on sugar-sweetened beverages on 1 April 2017
  • VAT remains @ 14%

Tax tables for individuals, trusts, companies, SBC’s and micro businesses (in Rand)

Individuals and special trusts (calculated on taxable income):
0 – 188 000: 18% of taxable income
188 001 – 293 600: 33 840 + 26% of taxable income above 188 000
293 601 – 406 400: 61 296 + 31% of taxable income above 293 600
406 401 – 550 100: 96 264 + 36% of taxable income above 406 400
550 101 – 701 300: 147 996 + 39% of taxable income above 550 100
701 301 and above: 206 964 + 41% of taxable income above 701 300

Trusts other than special trusts:
Rate of Tax is 41%

Companies (financial years ending on any date between 1 April 2016 and 31 March 2017):
Rate of Tax is 28%

Small Business Corporations (financial years ending on any date between 1 April 2016 and 31 March 2017):
0 – 75 000: 0% of taxable income
75 001 – 365 000: 7% of taxable income above 75 000
365 001 – 550 000: 20 300 + 21% of taxable income above 365 000
550 001 and above: 59 150 + 28% of taxable income above 550 000

Micro business turnover tax (financial years ending on any date between 1 March 2016 and 28 February 2017):
0 – 335 000: 0% of taxable turnover
335 001 – 500 000: 1% of taxable turnover above 335 000
500 001 – 750 000: 1 650 + 2% of taxable turnover above 500 000
750 001 and above: 6 650 + 3% of taxable turnover above 750 000

Tax Rebates and Tax Thresholds for natural persons (in Rand)

Rebates:
Primary: R13 500
Secondary (Persons 65 and older): R7 407
Tertiary (Persons 75 and older): R2 466

Age Tax Threshold:
Below age 65: R75 000
Age 65 to below 75: R116 150
Age 75 and over: R129 850

Tax tables regarding retirement fund lump sum benefits (in Rand):

Tax table – Retirement fund lump sum withdrawal benefits:
0 – 25 000: 0% of taxable income
25 001 – 660 000: 18% of taxable income above 25 000
660 001 – 990 000: 114 300 + 27% of taxable income above 660 000
990 001 and above: 203 400 + 36% of taxable income above 990 000

Tax table – Retirement fund lump sum benefits or severance benefits:
0 – 500 000: 0% of taxable income
500 001 – 700 000: 18% of taxable income above 500 000
700 001 – 1 050 000: 36 000 + 27% of taxable income above 700 000
1 050 001 and above: 130 500 + 36% of taxable income above 1 050 000

Transfer Duty (in Rand):

Acquisition of property by all persons (calculated on value of property):
0 – 750 000: 0%
750 001 – 1 250 000: 3% of the value above R750 000
1 250 001 – 1 750 000: R15 000 + 6% of the value above R 1 250 000
1 750 001 – 2 250 000: R45 000 + 8% of the value above R 1 750 000
2 250 001 – 10 000 000: R85 000 +11% of the value exceeding R2 250 000
10 000 001 and above: R937 500 +13% of the value exceeding R10 000 000

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