2014/2015 Financial Year Budget Speech Highlights
R9.3 billion given to individual taxpayers to offset fiscal drag
No changes to income tax, VAT or capital gain tax rates, although “sin” taxes (see attached table) go up.
Tax free lump sum payments on retirement increased from R315 000 to R500 000. In addition, government is addressing taking costs out of the retirement funding chain to ensure greater benefits for retirees
The carbon tax has been delayed to 2016
No concrete action taken on National Health Insurance but it is on the government’s radar
Licensing and regulatory systems will be streamlined.
Manufacturing incentives of R10.3 billion over the next three years will be introduced. Additional machinery and productivity allowances of R15.2 billion will come into effect.
Currently, philanthropic entities (Public Benefit Organisations) are required to distribute 75% of their donations within one year. This will be relaxed and will enhance the sustainability of such organisations.
Small business (Micro Enterprises and Small Business Corporations) were given minor increases. The Minister emphasized that additional relief would come to small business this year, including reducing the compliance burden and a reduction in the rate of turnover tax for micro businesses from 6% to 5%.
Special Economic Zones will be allocated R3.6 billion to increase exports and job creation.
Overall, this was a conservative budget, which keeps fiscal policy on a sound footing.
Below are the 2014/2015 South African tax tables
Individuals and special trusts
|Taxable Income||Rate of Tax|
|(R)0 – 174 550||18% of taxable income|
|174 551 – 272 700||31 419 + 25% of taxable income above 174 550|
|272 701 – 377 450||55 957 + 30% of taxable income above 272 700|
|377 451 – 528 000||87 382 + 35% of taxable income above 377 450|
|528 001 – 673 100||140 074 + 38% of taxable income above 528 000|
|673 101 and above||195 212 + 40% of taxable income above 673 100|
|Secondary (Persons 65 and older)||R7 110|
|Tertiary (Persons 75 and older)||R2 367|
|Below age 65||R70 700|
|Age 65 to 75||R110 200|
|Age 75 and over||R123 350|