Tax rates for 2016
Finansiële risikobestuur vir u klein besigheid: Weet u wat om te doen?
February 25, 2016Minutes of board meetings
March 23, 2016
With the fiscal year-end for individuals on 29 February 2016, it is useful at this stage to be reminded of the various tax rates applicable for the 2016 tax year. These were enacted by the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 13 of 2015 and promulgated on 17 November 2015 (to the extent that these rates were amended).
Below we set out some of the more relevant rates and tables that may be applicable to our clients.
Income tax rates for individuals for the 2015/2016 tax year:
| Taxable income (R) | Rates of tax (R) |
| 0 – 181 900 | 18% of each R1 |
| 181 901 – 284 100 | 32 742 + 26% of the amount above 181 900 |
| 284 101 – 393 200 | 59 314 + 31% of the amount above 284 100 |
| 393 201 – 550 100 | 93 135 + 36% of the amount above 393 200 |
| 550 101 – 701 300 | 149 619 + 39% of the amount above 550 100 |
| 701 301 and above | 208 587 + 41% of the amount above 701 300 |
Interest Exemptions from Income Tax:
| | 2016 |
| Person younger than 65 | R23 800 |
| Person 65 and older | R34 500 |
Medical credits available to be deducted against an income tax liability:
| Per month (R) | 2016 |
| For the taxpayer who paid the medical scheme contributions | 270 |
| For the first dependant | 270 |
| For each additional dependant(s) | 181 |
The following rebates will apply for individuals against their tax liability calculated in accordance with the above:
Cumulative Rebates from Income Tax for Individuals:
| Tax Rebate | |
| Primary | R13 257 |
| Secondary (65 and older) | R7 407 |
| Tertiary (75 and older) | R2 466 |
Income Tax for companies is levied at 28%, whilst the rate is increased from 40% to 41% in the case of trusts.
Small Business Corporations are not taxed at a flat rate of 28%, but according to the below table for tax years ending between 1 April 2015 and 31 March 2016:
| Taxable income (R) | Rate of tax (R) |
| 0 – 73 650 | 0% |
| 73 651 – 365 000 | 7% of the amount above 73 650 |
| 365 001 – 550 000 | 20 395 + 21% of the amount above 365 000 |
| 550 001 and above | 59 245 + 28% of the amount above 550 000 |
Capital gains tax is calculated by including 33.3% of an individual’s net capital gains (less R30,000) in their taxable income to be used for calculating their income tax liability (see table above). The inclusion rate for ordinary trusts and companies are set at 66.6%.
The VAT rate is retained at 14%. The same applies to donations tax and estate duty, both still levied at 20%.
Transfer duty applicable to individuals:
| Value of the property (R) | Rate |
| 0 – 750 000 | 0% |
| 750 001 – 1 250 000 | 3% of the value above 750 000 |
| 1 250 001 – 1 750 000 | 15 000 + 6% of the value above 1 250 000 |
| 1 750 001 – 2 250 000 | 45 000 + 8% of the value above 1 750 000 |
| 2 250 001 and above | 85 000 + 11% of the value above 2 250 000 |
Turnover tax rates:
| Taxable turnover (R) | Rate of tax (R) |
| 0 – 335 000 | 0% |
| 335 001 – 500 000 | 1% of the amount above 335 000 |
| 500 001 – 750 000 | 1650 + 2% of the amount above 500 000 |
| 750 001 and above | 6 650 + 3% of the amount above 750 000 |
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or ommissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.