Waterbessie Street, Roodekrans
+27 11 039 2630

Tax Year 2019/2020

Tax Year 2019/2020

Taxable income Rates of tax – 2019/2020

R 0 – R195 850 = 18% of each R1
R195 581 – R305 850 = R 35 253 + 26% of the amount over R195 580
R305  851 – R423 300 = R 63 853 + 31% of the amount over R305 850
R423 301  – R555 600 = R 100 263 + 36% of the amount over R423 300
R555  601 – R708 310 = R147 891 + 39% of the amount over R555 600
R708  311 –

R1500 000

R1500 000+

 

= R207 448 + 41% of the amount over R708 311

 

=R532 041 + 45% of the

amount over R1500 000

 

Tax Thresholds

2019 2020
Persons under 65 R78 150 R79 000
Persons 65 and under 75 R121 000 R122 300
Persons 75 and over R135 300 R136 750
Tax Rebates
Amounts deductible from the tax payable
2019 2020
Persons under 65 R14 067 R14 220
Persons 65 and under 75 R21  780 R22 014
Persons 75 and over R24 354 R24 615

 

Companies Income Tax Rates – (Please see small business corporations) 2019/ 2020 : 28%

Small business corporations tax rates – 

Rates of tax – Years of assessment ending between 1 April 2019 and 31 March 2020

R 0 – R 79000 = Nil
R79 000 – 365 000 = 7% of the amount over R 79 000
R365 001 – 550 000 = R20 020 + 21% of the taxable amount over R365 000
R550 001 + = R58 870 + 28% of the amount above R550 000

 

Rates of tax – Years of assessment ending between 1 April 2018 and 31 March 2019

R 0 – R 78 150 = Nil
R 78 150 – 365 000 = 7% of the amount over R 78 150
R365 001 – 550 000 = R20 080 + 21% of taxable income above R365 000

 

Applies if:

  • All shareholders or members throughout the year of assessment are natural persons who hold no shares in any other private companies or members interest in any other close corporations or co-operatives other than those which:
    • are inactive and have assets of less than R5 000; or
    • have taken steps to liquidate, wind up or deregister (effective for
    • years of assessment commencing on or after 1 January 2011).
  • Gross income for the year of assessment does not exceed R20 million.
  • Not more than 20% of the gross income and all the capital gains consist collectively of investment income and income from rendering a personal service. Investment income includes any annuity, interest, rental income, royalty or any income of a similar nature, as well as dividends and any proceeds derived from investment or trading in financial instruments (including futures, options and other derivatives), marketable securities or immovable property. Personal service includes any service in the field of accounting, actuarial science, architecture, auctioneering, auditing, broadcasting, consulting, draughtsmanship, education, engineering, financial service broking, health, information technology, journalism, law, management, real estate broking, research, sport, surveying, translation, valuation or veterinary science, which is performed personally by any person who holds an interest in the company or close corporation, except where such small business corporation employs three or more unconnected full-time employees for core operations.
  • The company, co-operative or Close Corporation is not an employment entity.

 

Turnover tax for micro businesses

Financial years ending on any date between 1 April 2019 and 31 March 2020

Taxable turnover (R) Rate of tax (R)
0 – 335 000 0% of taxable turnover
335 001 – 500 000 1% of taxable turnover above 335 000
500 001 – 750 000 1 650 + 2% of taxable turnover above 500 000
750 000 and above 6 650 + 3% of taxable turnover above 750 000

Deductions – Employees

Current Pension Fund Contributions

27,5% of remuneration from retirement-funding employment or R350 000, whichever is the lower. Retirement-funding employment refers to income which is taken into account to determine contributions to a pension or provident fund. Excess contributions are not carried forward to the next year of assessment but are accumulated for the purpose of determining the tax-free portion of the lump sum upon retirement.

 

Arrear Pension Fund Contributions

Any contributions in excess of the limitations will be rolled forward and will be available for deduction in future tax years, subject to the annual limitations applicable in those tax years. Any non-deductible contributions will be available against retirement lump sums or annuity income.

 

Medical Expenses and Medical Aid Deductions

  • Taxpayers 65 and older may claim all qualifying expenditure.
  • Taxpayers under 65, where the taxpayer or the taxpayer’s spouse or child is a person with a disability may in determining tax payable deduct monthly contributions to medical schemes (a tax rebate to be known as a medical scheme fees tax credit) up to R310 for each of the taxpayer and the first dependent on the medical scheme and R209 for each additional dependent. When determining taxable income they can also claim a deduction for medical scheme contributions exceeding four times the amount of the medical schemes fees tax credits and claim all qualifying medical expenses (which excludes medical scheme contributions).
  • Other taxpayers under 65 may in determining tax payable deduct monthly contributions to medical schemes (a tax rebate to be known as a medical scheme fees tax credit) up to R310 for each of the taxpayer and the first dependent on the medical scheme and R209 for each additional dependent. When determining taxable income they can also claim a deduction for the aggregate of medical scheme contributions exceeding four times the amount of the medical schemes fees tax credits and any other medical expenses, limited to the amount which exceeds 7,5% of taxable income (excluding retirement fund lump sums).
  • Qualifying expenditure includes:
    • own contributions to medical aid funds in excess of capped amount
    • medical aid fringe benefit determined by the employer in excess of
    • capped amount
    • payments to medical practitioners, nursing homes and hospitals
    • payments to pharmacists for prescribed medicines
    • payments for physical disabilities, including remedial teaching and
    • expenditure incurred for mentally handicapped persons
    • payments for the benefit of any dependents.

 

  • Disability means a moderate to severe limitation of a person’s ability to function or perform daily activities as a result of physical, sensory, communication, intellectual or mental impairment, if the limitation lasts more than a year and is diagnosed by a registered medical practitioner.
  • Recoveries of expenses (including amounts received from medical aid savings account) reduce the claim
  • Expenditure paid by a taxpayer on behalf of a spouse or children must be claimed by the spouse who paid the expense.
Deemed expenditure 2020 Fixed (R) Fuel (C) Repairs (C)
Cost of vehicle
Does not exceed R85 000 28 352 95.7 34.4
Exceeds R 85 000 but not R170 000 50 631 106.8 43.1
Exceeds R170 000 but not R255 000 72 983 116.0 47.5
Exceeds R255 000 but not R340 000 92 683 124.8 51.9
Exceeds R340 000 but not R425 000 112 443 133.5 60.9
Exceeds R425 000 but not R510 000 133 147 153.2 71.6
Exceeds R510 000 but not R595 000 153 850 158.4 88.9
Exceeds R595 000- 153 850 158.4 88.9

 

Deemed expenditure 2019 Fixed (R) Fuel (C) Repairs (C)
Cost of vehicle
Does not exceed R85 000 28 352 95.7 34.4
Exceeds R 85 000 but not R170 000 50 631 106.8 43.1
Exceeds R170 000 but not R255 000 72 983 116.0 47.5
Exceeds R255 000 but not R340 000 92 683 124.8 51.9
Exceeds R340 000 but not R425 000 112 443 133.5 60.9
Exceeds R425 000 but not R510 000 133 147 153.2 71.6
Exceeds R510 000 but not R595 000 153 850 158.4 88.9
Exceeds R595 000 – 153 850 158.4 88.9

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Waterbessie Street, Roodekrans

 

011 039 2630 | 072 066 0989

 

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