Budget Speech Highlights
- Personal income tax relief of R8.1 billion.
- A third income tax rebate of R2 000 for individuals 75 years and older.
- Conversion of medical tax deductions to tax credits from March 2012.
- From 1 March 2012 an employer’s contribution to retirement funds on behalf of an employee will be 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 their taxable income for contributions to pension, provident and retirement annuity funds with a minimum annual deduction of R12 000 and an annual maximum of R200 000.
- Transfer duty relief for transactions from 23 February 2011.
- National Health Insurance will be phased in over 14 years. Funding options under consideration are a payroll tax (payable by employers), an increase in the VAT rate and a surcharge on individuals’ taxable income.
- Dividends tax becomes effective from 1 April 2012 and Secondary Tax on Companies will be discontinued from that date.
- Treat dividends received under certain dividend schemes which undermine the tax base as ordinary revenue.
- Extend the learnership tax incentive for a further five years.
- Introduction of a youth employment subsidy in the form of a tax credit.
- Taxation of gambling winnings exceeding R25 000 at 15% from 1 April 2012.
All material subject to our Legal Disclaimers.