TAX TABLES
Year of assessment ending 28 February 2012
Individuals, Deceased Estates and qualifying Trusts
| Taxable Income |
Rates of tax |
|
|
R |
R |
|
|
0 – 150 000 |
18% |
of each R1 |
|
150 001 – 235 000 |
27 000 + 25% |
of amount over 150 000 |
|
235 001 – 325 000 |
48 250 + 30% |
of amount over 235 000 |
|
325 001 – 455 000 |
75 250 + 35% |
of amount over 325 000 |
|
455 001 – 580 000 |
120 750 + 38% |
of amount over 455 000 |
|
580 001 and above |
168 250 + 40% |
of amount over 580 000 |
Trusts other than special trusts and testamentary trusts
Rate of tax: 40%
Rebates
|
2012 |
2011 |
|
| R |
R |
|
| Primary |
10 755 |
10 260 |
| Secondary – 65 and older |
6 012 |
5 675 |
| Third – 75 and older |
2 000 |
n/a |
Threshold at which tax liability commences
|
2012 |
2011 |
|
| R |
R |
|
|
59 750 |
57 000 |
|
93 150 |
88 528 |
|
104 261 |
88 528 |
EXEMPTIONS
Interest
- R22 800 (2011: R22 300) per taxpayer on interest and foreign dividends.
- R33 000 (2011: R32 000) per taxpayer 65 and older.
- Interest is exempt where earned by non-residents who are absent from SA for 183 days or more p.a. and who are not carrying on business in SA.
Dividends – local and foreign
- Received from SA resident companies are exempt.
- Net foreign dividends and interest received are included in taxable income and are only exempt to a maximum of R3 700 of the total interest exemption as mentioned above.
- With effect from 08/11/2005, if a SA resident holds more than 20% of the equity share capital in the foreign company declaring the dividend, any foreign dividends received by the resident will be exempt from tax.
CAPITAL GAINS TAX (CGT)
- Only gains accruing after 01/10/2001 on the disposal of assets, death, donation, exchange, loss or emigration are subject to CGT, subject to certain exemptions.
- The first R20 000 (2011: R17 500) per annum of the capital gain or loss realised by individuals and special trusts is exempt from CGT or R200 000 in the year of death (2011: R120 000).
- Withholding tax for non-residents on sale of SA immovable property costing >R2m: 5% for natural persons, 7,5% for companies and 10% for trusts.
- If proceeds from sale of primary residence is R2m or less it is exempt; else exemption of R1,5m of the capital gain will apply to primary residence disposals if less than 2 hectares.
| Taxpayer | Inclusion rate (%) | Effective (%) |
| Individuals | 25 | 0 – 10 |
| Trusts | 25 – 50 | 4.5 – 20 |
| Companies | 50 | 0 – 14 |
PROVISIONAL TAX
The following individuals are not required to register for provisional tax purposes:
- Individuals below the age of 65 who earn taxable non-employment income of R20 000 or less p.a.
- Individuals aged 65 and older if their annual taxable income consists exclusively of remuneration, interest, dividends or rent from the lease of fixed property and is R120 000 or less p.a.
DEDUCTIONS
Current pension fund contributions
Greater of:
– 7,5% of income from retirement funding employment, or
– R1 750.
Any excess may not be carried forward to the following year of assessment.
Arrear pension fund contributions
Maximum of R1 800 p.a. Any excess may be carried forward to the following year of assessment.
Current retirement annuity fund contributions
The greater of:
– 15% of taxable income from non-retirement funding employment, or
– R3 500 less current deductible contributions to a pension fund, or
– R1 750.
Any excess may be carried forward to the following year of assessment.
Arrear retirement annuity fund contributions
Maximum of R1 800 p.a. Any excess may be carried forward to the following year of assessment.
Limits for Retirement Fund contributions to be amended from 01/03/2012.
Medical and physical disability expenses (including medical aid contributions)
- Taxpayers 65 and over, unlimited qualifying expenditure allowed.
- Taxpayers under 65 may deduct monthly contributions to medical schemes up to R720 (2011: R670) for each of the first two dependants on their medical scheme and R440 (2011: R410) for each additional dependant. In addition they may claim a deduction for medical scheme contributions above the capped amounts and any other medical expenses limited to the amount which exceeds 7,5% of taxable income (excluding retirement fund lump sums).
- Taxpayers under 65 may claim all qualifying medical expenses, where the taxpayer, his spouse, or his child or stepchild is defined as a handicapped person.
This medical scheme deduction is expected to be replaced with a tax credit system from 01/03/2012.
Donations
Donations to certain public benefit organisations are limited to 10% of taxable income before deducting medical expenses.
LIMITATION OF EMPLOYEE DEDUCTIONS
- Losses from secondary trades, incurred by individuals whose income exceeds R580 000 (2011: R552 000) p.a, are ring fenced in certain circumstances.
FRINGE BENEFITS
Company car
- Tax at 3,5% p.m (3,25% p.m where maintenance plan) on determined value (Cash cost including VAT).
- A logbook must be maintained to substantiate the actual and business mileage travelled for the year, to reduce the fringe benefit on assessment.
If the employee has borne the cost of license, insurance, maintenance and fuel for private travel and the private distance travelled is substantiated by a logbook, further relief is available on assessment.
80% of the fringe benefit is subject to PAYE on a monthly basis. If the employer is satisfied that at least 80% of the use of motor vehicle in the tax year is for business, the percentage is reduced to 20%.
Travel allowance
Deemed expenditure rates, which may be used in determining the allowable deduction for business travel, where actual costs are not used, are as follows:
| Value of the vehicle(including VAT) R |
Fixed cost R |
Fuel cost c/km |
Maintenance cost c/km |
|
0 – 60 000 |
19 492 |
64,6 |
26,4 |
|
60 001 – 120 000 |
38 726 |
68,0 |
29,2 |
|
120 001 – 180 000 |
52 594 |
71,3 |
31,9 |
|
180 001 – 240 000 |
66 440 |
77,7 |
35,0 |
| 240 001 – 300 000 |
79 185 |
87,0 |
44,7 |
|
300 001 – 360 000 |
91 873 |
93,9 |
54,2 |
|
360 001 – 420 000 |
105 809 |
100,9 |
65,8 |
|
420 001 – 480 000 |
119 683 |
113,1 |
67,6 |
| Exceeding 480 000 |
119 683 |
113,1 |
67,6 |
Notes:
- The fixed cost is reduced on a pro-rata basis if the vehicle is used for business purposes for less than a full year.
- A logbook must be maintained to substantiate the actual mileage and business mileage travelled for the year to claim against a travel allowance received.
- No employees tax is payable on a reimbursive allowance paid by an employer to an employee, where the employee does not receive a travel allowance, if the annual distance travelled for business purposes and the rate per km does not exceed 8 000 kms or 305c per km.
80% of the travel allowance is subject to PAYE on a monthly basis. If the employer is satisfied that at least 80% of the use of motor vehicle in the tax year is for business, the percentage is reduced to 20%.
Interest-free or low-interest loans
Included in gross income: the difference between interest at the official rate and the actual amount of interest charged. The current official rate of interest is 6.5% p.a. (7.5% from 01/10/2010 – 28/02/2011)
Subsistence allowance
Where the employee is by reason of his duties obliged to spend at least one night away from his usual place of residence, the employee is deemed to have expended:
– R88 (2011: R85) p.d if the allowance or advance is granted to pay for incidental costs only, or
– R286 (2011: R276) p.d if the allowance or advance is granted to pay for the cost of meals and incidental costs, or
– Where the allowance or advance is granted to pay for incidental costs only for travel outside the Republic (not exceeding six weeks) the applicable country’s rate per day must be used.
COMPANIES
Corporate Tax Rates
| Entity |
2012* |
2011 |
|
28% |
28% |
|
40% |
40% |
|
33% |
33% |
|
33% |
33% |
|
||
| – R0 – R59 750 (2011: R57 000) |
0% |
0% |
| – R59 750 – R300 000(2011: R57 000 – R300 000) |
10% |
10% |
| – R 300 001 and above |
28% |
28% |
* Rate changes effective for years of assessment ending on or after 01 April 2011.
Small Business Corporations (SBC)
– From 01/04/2006, the turnover limit is R14m.
– Depreciation write-off at 50:30:20% rate for all depreciable assets. Manufacturing assets immediate 100% write-off.
– SBC’s include personal services entities, provided that the business maintains at least 3 full-time employees for core operations.
– CGT tax relief for small businesses is R900 000 (2011: R750 000).
Turnover Tax for Micro Businesses
* For Financial years ending on 28 February 2012
| Taxable Income |
Rates of tax |
|
|
R |
R |
|
|
0 – 150 000 |
0% |
|
|
150 000 – 300 000 |
1% |
of amount over 150 000 |
|
300 000 – 500 000 |
1 500 + 3% |
of amount over 300 000 |
|
500 000 – 750 000 |
7 500 + 5% |
of amount over 500 000 |
|
750 000 and above |
20 000 + 7% |
of amount over 750 000 |
Micro Business is defined as a business with a qualifying turnover that does not exceed R1m for a year of assessment and, which is not specifically disqualified from making use of the turnover tax.
Secondary Tax on Companies (STC)
– STC is levied at 10% of the net amount of any dividend declared, being dividends declared less all dividends receivable during the “dividend cycle”.
– SA branches of foreign companies are exempt from STC.
– STC will be replaced by a final dividend tax of 10% at shareholder level from 01/04/2012.
Wear and tear allowances
– Any asset costing less than R7 000 excl. VAT may be written off in full in the year of acquisition where purchased on or after 01/03/2009.
– CGT and income tax recoupment relief if sale proceeds of movable depreciable business assets reinvested in other movable assets within 12 months.
Energy Efficiency Incentive
Investment by companies in energy-efficient equipment should qualify for an additional allowance of up to 15% on condition that there is documentary proof of the resulting energy efficiencies, certified by the Energy Efficiency Agency.
CO2 Vehicle Emission Tax
New passenger cars are taxed based on their certified CO2 emission at specified rates.
OTHER TAXES
Skills Development Levies (SDL)
- All employers paying annual remuneration of less than R500 000 will be exempt from SDL.
Unemployment Insurance Fund Contributions (UIF)
- UIF is payable monthly by employers, 1% by employers and 1% by employees, based on employees’ remuneration below a certain amount.
- Employers not registered for PAYE or SDL purposes must pay the contributions to the Unemployment Insurance Commissioner.
Value-Added Tax (VAT)
| Standard-rated supplies |
14% |
| Zero-rated supplies |
0% |
| Exempt supplies |
Exempt |
| Turnover level for VAT registration |
Compulsory after R1m p.a. achieved or likely to be achieved. Voluntary minimum of R50 000 p.a. or R60 000 p.a. for commercial accommodation |
Transfer duty
Payable on the purchase of property or shares/contingent rights in residential property owning companies/trusts not subject to VAT at the following rates:
By all persons on or after 01/03/2011:
| Value of Property |
Rates of tax |
|
|
R |
R |
|
|
0 – 600 000 |
0% |
|
|
600 001 – 1 000 000 |
3% |
on value above 600 000 |
|
1 000 001 – 1 500 000 |
12 000 + 5% |
on value above 1 000 000 |
|
1 500 001 and above |
37 000 + 8% |
on value above 1 500 000 |
Donations tax
- Levied at a flat rate of 20%
- Exemptions:
- R100 000 p.a. donated by natural persons
- R10 000 p.a. in case of person who is not a natural person
- Donations between spouses and to certain public benefit organisations.
Estate duty
- Levied at flat rate of 20% on all property of SA residents and SA property of non-residents.
- Primary abatement of R3,5m.
RETIREMENT FUND LUMP SUM WITHDRAWAL BENEFITS
| Taxable Income |
Rates of tax |
|
|
R |
R |
|
|
0 – 22 500 |
0% |
|
|
22 501 – 600 000 |
18% |
of amount over 22 500 |
|
600 001 – 900 000 |
103 950 + 27% |
of amount over 600 000 |
|
900 001 and above |
184 950 + 36% |
of amount over 900 000 |
RETIREMENT FUND LUMP SUM BENEFITS ON RETIREMENT/RETRENCHMENT
| Taxable Income |
Rates of tax |
|
|
R |
R |
|
|
0 – 315 000 |
0% |
|
|
315 000 – 630 000 |
18% |
of amount over 315 000 |
|
630 000 – 945 000 |
56 700 + 27% |
of amount over 630 000 |
|
945 001 and above |
141 750 + 36% |
of amount over 945 000 |
The tax payable on a retirement fund lump sum during a year of assessment is determined by aggregating all retirement fund lump sum benefits received from 01/10/2007.
SECURITIES TRANSFER TAX
Tax levied at a rate of 0.25% on the transfer of listed or unlisted securities, consisting of shares in companies or member’s interest in close corporations.
EXCHANGE CONTROL
– Resident individual taxpayer over 18 – foreign capital investments p.a. – R 4m
– Travel and studies: per adult p.a. (over 18 years) – R 1m
per child p.a. (under 18 years) – R200 000
INTEREST RATES
Prime bank overdraft rates
| Date of change |
Rate p.a |
| 23 March 2010 |
10% |
| 10 September 2010 |
9.5% |
| 19 November 2010 |
9% |
SARS prescribed rates of interest as at 01 March 2011
| Fringe benefits – interest free or low-interest loans | 6.5% p.a. |
| Late or under payments of tax | 8.5% p.a. |
| Refunds of overpayments of provisional tax | 4.5% p.a. |
| Refunds of tax upon successful appeal | 4.5% p.a. |
| Late payments of VAT | 8.5% p.a. |
| Refund of VAT after prescribed period | 4.5% p.a. |
DISCLAIMER
Whilst every care has been taken in the presentation of this information, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions.