Brenthurst Wealth Management Logo

CALL US NOW TO DISCUSS YOUR FINANCIAL PLAN

RSS icon
JHB HQ: +27 (0)11 799 8100   SANDTON: +27 (0)10 035 1391   PTA: +27 (0)12 347 8240
CPT: +27 (0)21 418 1236   BELLVILLE:+27 (0)21 914 9646   STELLENBOSCH:+27 (0) 21 882 8706
Brenthurst Wealth Management

SERVICES

Tax Planning

Tax is closely related to investments and personal finance, and therefore it made sense to add a tax- advisory service to the service offering of Brenthurst Wealth Management.

In addition to tax advice on investments and any other personal tax matters, Brenthurst also offers clients an e-filing service of provisional tax returns and payments.

Other tax services offered include:

  • Income tax registrations
  • Company tax registrations
  • Completion and submission of income tax returns
  • Tax calculations
  • Advice on tax planning and salary structuring
  • Tax directives
  • Disputes with SARS

Deadlines for submitting tax returns: 2017

  • 01-04-2017: Start of Annual Employers Tax Season
  • 30-05-2017: End of Annual Employers Tax Season
  • 01-07-2017: Start of  2017 Tax Season for Individuals
  • 30-08-2017: Submission and Payment of 1st Provisional Tax for 2017
  • 01-09-2017: Start of Interim Employers Tax Season
  • 31-10-2017: End of Interim Employers Tax Season 
  • 21-11-2017: End of Tax Season for Individuals

(Electronic filing via eFiling & Branches for non-provisional taxpayers)

Notification: VAT increase effective as from 1 April 2018
On the 21st February 2018, ex finance minister Malusi Gigaba presented the annual Budget Speech in the National Assembly. He announced that National Treasury will increase the value-added tax (VAT) rate from 14% to 15% effective 1 April 2018 on the supply of goods and services rendered by registered VAT vendors. In order to comply with legislation and regulatory changes, all investment related fees, will be adjusted to reflect the new VAT rate with effect from 1 April 2018. Should you have any queries please do not hesitate to contact any our offices

Provisional taxpayer  will be able to submit from the 01 July 2017 to the end of Jan 2018

BUDGET SPEECH 2018, Personal income tax: This is what you’ll pay!   

This year’s budget address saw an increase in the Value Added Tax (VAT) rate (set at 15% up from previous 14%; last adjusted in 1993) effective 1 April 2018, which is estimated to result in additional revenue of R22.9 billion. This attracted the most attention from media, lobby groups and opposition parties, with Treasury stating South Africa is now more in line with global averages.

South African taxpayers face an already high tax burden compared to the rest of the world, and no-one was spared.

Many of the taxes will affect those on different income levels but as was expected, the high-income earners and wealthier individuals will have to contribute more towards the fiscus as Finance Minister Malusi Gigaba attempted to at least narrow the gaping budget deficit in the years ahead.

Personal income tax remains one of the biggest earners for government and it is estimated that income tax will bring in R505.8bn in revenue, VAT R348bn and company tax R231bn. This years proposed tax measures are expected to raise an additional R36 billion in 2018/19.

► OFFSHORE ALLOWANCES INCREASED:
The offshore investment allowance for institutional investors would be increased from 25% to 30%.

At the same time, the allowance for investments into the rest of Africa would also increase by 5% to 10%.

Effectively this means that asset managers and pension funds can now take a greater portion of their asset pool offshore. Many firms, including the likes of Allan Gray that have had to close their international funds to new investment as they had reached their limits, will therefore be able to open them again.

The change to the offshore investment allowance also immediately causes a change to Regulation 28 of the Pension Funds Act. This sets the asset allocation limits for individual pension funds.

“From a regulatory perspective, Regulation 28 changes automatically as the offshore limits are linked to whatever the Reserve Bank publishes, unless the Financial Services Board (FSB) prescribes a different percentage,” it was reported on Moneyweb.

► SOME OTHER KEY CHANGES:
 The Estate duty rate will increase from 20% to 25% for the portion of the dutiable estate exceeding R30 million, and donations taxed at a higher rate  of 25% in respect of the portion exceeding R30 million, effective 1 March 2018.

 In promoting eco-friendly choices, the plastic bag levy, car emissions tax and the levy on in candescent light bulbs will be increased.

 Sugary beverages will now be taxed under a new health promotion levy, effective 1 April 2018.

 The fuel levy has been increased by 52 cents/litre. (22 cents/litre towards fuel taxes and 30 cents/litre towards the Road Accident Fund levy).

 Alcohol and tobacco excise duties will beincreased between 6-10%.

 Luxury ad valorem excise duty for motor vehicles will be increased from 25% to 30%.

 Classification of cellular telephones will be updated to include smartphones to ensure they attract ad valorem excise duties.

 In addition, the ad valorem excise duty rates, now at 5% and 7%, will be increased to 7% and 9%, ensuring that households spending more on luxury goods contribute proportionately more to revenue, effective 1 April 2018.

► RETIREMENT REFORM PROPOSALS
TAX TREATMENT OF CONTRIBUTIONS TO RETIREMENT FUNDS SITUATED OUTSIDE SA:
The Income Tax Act currently exempts all retirement benefits from a foreign source for employment rendered outside South Africa from taxation. The interaction of this exemption with double taxation agreements and other provisions of the Income Tax Act will be reviewed to ensure that the principle of allowing deductible contributions only in cases where benefits are taxable is upheld.

►TAX TREATMENT OF PRESERVATION FUNDS UPON EMIGRATION.
Upon formal emigration an individual is able to withdraw the full value of their retirement annuity, after paying the applicable taxes. Government will consider aligning the tax treatment of different types of retirement fund withdrawals in such circumstances. No changes to the taxation of capital gains or dividends tax and remain at the same rates.

► INCOME TAX: INDIVIDUALS AND TRUSTS
TAX RATES FOR THE PERIOD 1 MARCH 2018 TO 28 FEBRUARY 2019
Individuals and special trusts

Taxable Income (R) Rate of Tax (R)
0 – 195 850 18% of taxable income
195 851 – 305 850 35 253 + 26% of taxable income above 195 850
305 851 – 423 300 63 853 + 31% of taxable income above 305 850
423 301 – 555 600 100 263 + 36% of taxable income above 423 300
555 601 – 708 310 147 891 + 39% of taxable income above 555 600
708 311 – 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%
REBATES
Primary R14 067
Secondary (Persons 65 and older) R7 713
Tertiary (Persons 75 and older) R2 574

AGE TAX THRESHOLD
Below age 65 R78 150
Age 65 to below 75 R121 000
Age 75 and over R135 300

► INTEREST EXEMPTIONS
Interest earned from a South African source by any individual under 65 years, up to R23 800 per annum, and individuals 65 and older, up to R34 500 per anum, is exempt from income tax.

►TAXATION OF CAPITAL GAINS
CAPITAL GAINS ON THE DISPOSAL OF ASSETS ARE INCLUDED IN TAXABLE INCOME

► MAXIMUM EFFECTIVE RATE OF TAX:
Individuals and special trusts 18%
Companies 22.4%
Other trusts 36%

OTHER TAXES DUTIES AND LEVIES
VALUE-ADDED TAX (VAT)

VAT is levied at the standard rate of 15% on the supply of goods and services by registered vendors. Previous VAT rate was 14% and will remain in place until end March 2018.

  A vendor providing taxable supplies of more than R1 million per annum must register for VAT.
  A vendor providing taxable supplies of more than R50 000, but not more than R1 million per annum may apply for voluntary registration.
 Certain supplies are subject to a zero rate or are exempt from VAT.

► ESTATE DUTY
Estate duty is levied on property of residents and South African property of non-residents less  allowable deductions. The duty is levied on the dutiable value of an estate at a rate of 20% on the first R30 million and at a rate of 25% above R30 million.

A basic deduction of R3.5 million is allowed in the determination of an estate’s liability for estate duty as well as deductions for liabilities, bequests to public benefit organisations and property accruing to surviving spouses.

► DONATIONS TAX
Donations tax is levied at a flat rate of 20% on the value of property donated. However, the amount of donations exceeding R30 million is taxed at a rate of 25%.
 


RA’S REMAIN A GREAT WAY TO SAVE FOR RETIREMENT.
THE BENEFITS ARE AS FOLLOWS:

  • Contributions are tax deductible within certain limits.
  • There is no income or capital gains tax applicable during the term of the investment.
  • Unclaimed contributions can be deducted on retirement.
  • At retirement, the remaining value (min two-thirds) can be transferred to an annuity on a tax-neutral basis.

 

Should you require any additional information or assistance with the completion and submission of your annual tax return please feel free to contact Gavin Butchart  on (011) 799 8100 or email gavinb@brenthurstwealth.co.za

In the event that you submit your return after the deadline you will face an administrative penalty of at least R250 per month that your return is outstanding!

 


 

CONTACTS

For tax disclosure application forms, telephone the South African Revenue Service (SARS) on 0800 00 7277, visit any SARS branch or email vdp@sars.gov.za Applications can also be submitted via eFiling. For more information about the tax Voluntary Disclosure Programme (VDP), visit www.sars.gov.za

Exchange control disclosure application forms can be downloaded from the website of the South African Reserve Bank, www.reservebank.co.za For any exchange control VDP-related queries, contact the Financial Surveillance Division on 012 313 3169 or email SARB-VDPFNS@resbank.co.za

© 1999 – 2010 Independent Online. All rights strictly reserved.
Independent Online is a wholly owned subsidiary of Independent News & Media. Reliance on the information this site contains is at your own risk.

johannesburg

(fourways)

Tel: +27 (0)11 799 8100 Unit 2B, Cedar Office Estate,
Cedar Road, Fourways, SA

JOHANNESBURG

(SANDTON)

Tel: +27 (0)10 035 1391 The Business Exchange, Block 4, 150
Rivonia Road, Sandton, Gauteng, SA

PRETORIA

(ERASMUSKLOOF)

Tel: +27 (0)12 347 8240 494A Lois Avenue,
Erasmuskloof X3, Pretoria, SA

CAPE TOWN

(DE WATERKANT)

Tel: +27 (0) 21 418 1236 29 Chiappini Street, De Waterkant,
Cape Town, 8001, SA

BELLVILLe

(TYGERVALLEY)

Tel: +27 (0)21 914 9646 Tyger Waterfront Terraces Block 2,
Carl Cronje Drive, Bellville, SA

STELLENBOSCH

(central)

Tel: +27 (0) 21 882 8706 97 Dorp Street, Unit 3,
La Gratitude, Stellenbosch, SA