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The New Income Tax Rates

Tax payable for the tax year ending between 1 March 2018 and 28 February 2019.

Budget Taxes

TAXABLE INCOME AND TAX PAYABLE IN RANDS

0 to 195 850 18% of taxable income
195 851 to 305 850 35 253 + 26% of taxable income above 195 850
305 851 to 423 300 63 853 + 31% of taxable income above 305 850
423 301 to 555 600 100 263 + 36% of taxable income above 423 300
555 601 to 708 310 147 891 + 39% of taxable income above 555 600
708 311 to 1 500 000 207 448 + 41% of taxable income above 708 310
1 500 001 and above 532 041 + 45% of taxable income above 1 500 000


Trusts other than special trusts 
Rate of tax 45%

INCOME TAX: COMPANIES

Financial years ending on any date between 1 April 2018 and 31 March 2019. 
Type Rate of  Tax (R) Companies 
28% of taxable income

INCOME TAX: SMALL BUSINESS CORPORATIONS 

Financial years ending on any date between 1 April 2018 and 31 March 2019. 

Taxable Income (R) Rate of Tax (R) 

0 – 78 150  0% of taxable income 
78 151 – 365 000  7% of taxable income above 78 150 
365 001 – 550 000  20 080 + 21% of taxable income above 365 000 
550 001 and above 58 930 + 28% of the amount above 550 000

 

In nutshell the main tax proposals for the 2018 Budget are:

  • An increase in the value-added tax rate from 14% to 15%,
  • A below inflation increase in the personal income tax rebates and brackets, with greater relief for those in the lower income tax brackets,
  • An increase in the ad-valorem excise duty rate on luxury goods from 7% to 9%,
  • A higher estate duty tax rate of 25% for estates greater than R30 million,
  • A 52 cents per litre increase in the levies on fuel, made up of a 22 cents per litre for the general fuel levy and a 30 cents per litre increase in the Road Accident Fund Levy, and
  • Increases in the alcohol and tobacco excise duties of between 6 and 10 per

In developing these tax proposals, government reviewed the potential contributions from the three major tax instruments which raise over 80% of our revenue; personal and corporate income tax and VAT
 

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