Budget Speech 2012
Tax tables
| INCOME TAX: INDIVIDUALS AND TRUSTS |
Tax rates (year of assessment ending 28 February 2013)
Individuals and special trusts
| Taxable Income (R) |
Rate of Tax (R) |
|
0 - 160 000
|
18% of taxable income |
|
160 001 - 250 000
|
28 800 + 25% of taxable income above 160 000 |
|
250 001 - 346 000
|
51 300 + 30% of taxable income above 250 000 |
|
346 001 - 484 000
|
80 100 + 35% of taxable income above 346 000 |
|
484 001 - 617 000
|
128 400 + 38% of taxable income above 484 000 |
|
617 001 and above
|
178 940 + 40% of taxable income above 617 000
|
Tax Rebates
| Rebates |
|
|
Primary
|
R11 440 |
|
Secondary (Persons 65 and older)
|
R6 390
|
|
Tertiary (Persons 75 and older)
|
R2 130 |
Tax Thresholds
| Age |
Tax Threshold |
|
Below age 65
|
R63 556
|
|
Age 65 to below 75
|
R99 056
|
|
Age 75 and over
|
R110 889
|
Note: the tax threshold is above the SITE limit - therefore there is effectively no more SITE.
Medical Tax Credits
Medical tax credits replace the medical aid cap amounts used over the last couple of years.
- Individuals who are 65 years and older still have the benefit of a medical aid tax deductible deduction, subject to no limit.
- Employees who are younger than 65 however, no longer have the benefit of a medical aid tax deductible deduction. They do however qualify for a monthly medical tax credit (MTC).
- The MTC will be deducted from the tax calculated for the employee for each month the employee contributes to a medical scheme, reducing the employee's tax due each month.
- The MTC is calculated in relation to the number of beneficiaries on the medical aid - the values are R230 for the main member, R230 for the first dependant and R154 for each additional dependant
The result of this change is a more equitable benefit for all individuals who belong to medical aids. Lower income employees will "see" a greater tax benefit than higher income employees when comparing February and March tax amounts.
Subsistence allowances and advances
An employee is entitled to receive a subsistence allowance when the employee is obliged to spend at least one night away from his or her usual place of residence.
The value of the deemed allowance or advance where the accommodation is in the RSA is:
- R303 per day for meals and incidental costs and
- R93 per day for incidental costs only.
The schedule of rates for accommodation outside the RSA will be gazetted towards the end of the month.
Table for calculation of rate per km/travel allowance
The fuel and maintenance cost values were amended. It is advisable to recalculate the value of all employees' travel allowances from March 2012.
| Value of the vehicle (incl. VAT) |
Fixed cost |
Fuel cost |
Maintenance cost |
|
(R)
|
(R p.a.) |
(c/km) |
(c/km) |
|
0 - 60 000
|
19 492
|
73.7
|
25.7
|
|
60 001 - 120 000
|
38 726
|
77.6
|
29.0
|
|
120 001 - 180 000
|
52 594
|
81.5
|
32.3
|
|
180 001 - 240 000
|
66 440
|
89.6
|
36.9
|
|
240 001 - 300 000
|
79 185
|
102.7
|
45.2
|
|
300 001 - 360 000
|
91 873
|
117.1
|
53.7
|
|
360 001 - 420 000
|
105 809
|
119.3
|
65.2
|
|
420 001 - 480 000
|
119 683
|
133.6
|
68.3
|
|
exceeding 480 000
|
119 683
|
133.6
|
68.3
|
Kilometre rate for reimbursed km
The SARS prescribed rate per kilometer increased from R3.05 to R3.16.
Accommodation fringe benefit
The value of "B" in the formula used to determine the value of the accommodation fringe benefit remains unchanged at R59 750.00
Retirement reform: changes suggested for March 2014 only
From March 2014 an employer's contribution to retirement funds on behalf of an employee will be treated as a taxable fringe benefit in the hands of the employee. Individuals will from that date be allowed to deduct up to 22.5 per cent of the higher of taxable income or employment income for contributions to pension, provident and retirement annuity funds with a minimum annual deduction of R20 000 and an annual maximum of R250 000. For individuals at least 45 years of age the deductible amounts will be up to 27.5% with a minimum annual deduction of R20 000 and an annual maximum of R300 000.
More info
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