Tax implications for 2017
Using a mobile device? Click on the image to view in its entirety: Content sourced from PSG: https://www.psg.co.za/news/Budget-Speech-2017
read more
Budget 2017: What you need to know
Significant announcements New 45% tax rate for those earning more than R1.5 million per annum (around 100 000 taxpayers are affected) Dividend withholding tax increased from 15% to 20% No increases in VAT or Capital Gains Tax No new allocation for nuclear Budget deficit to decline from 3.4% in 2016/17 to 3.1% in 2017/18. For the first time since 2010, tax revenue growth did not match economic growth Tax changes Government will raise an additional R28 billion during the new tax year New 45% marginal tax rate for those earning more than R1.5 million per annum Other taxpayers will not receive full relief from fiscal drag – the impact of inflation on tax brackets Tax on dividends increase from 15% to 20% Taxes on fuel to rise by 39c a litre. (Fuel levy
read more
Let SARS help you pay for retirement
The South African Revenue Service (SARS) wants to help you pay for your retirement. The way in which they do this is by offering generous tax deductions when you make contributions to your retirement annuity (RA), pension or provident fund. On 1 March 2016, the tax deductions for retirement savings increased from 15% to 27.5% - which means you can now save more for retirement and get back more from SARS. What else has changed? You are now able to deduct your contributions to all retirement funds, with the maximum tax deduction you may make in a tax year limited to the greater of 27.5% of taxable income or remuneration (see Definitions), subject to an annual ceiling of R350 000. Contributions above this limit made directly by your employer are also now taxable as a fringe benefit
read more
Retirement Annuities VS Tax-Free Investments
Access to your cash Your investments in an RA cannot be accessed before the age of 55, except in very specific circumstances. You can access your TFI at any time. However, withdrawing from a TFI account impacts negatively on your lifetime investment limit of R500 000 – you cannot replace money that you have withdrawn. Tax savings The main difference between the two products is when you get the tax benefit. An RA offers tax savings now, i.e. you pay less tax now because you make contributions with earnings on which you have not paid tax, but you will pay tax later, i.e. you defer paying tax. Apart from deferring tax in an RA, a further tax saving may come from paying a lower average tax rate on the benefits withdrawn from the RA at and after retirement, v
read more
How important is medical aid?
Can you afford it? Medical aids have changed over the years. Traditional schemes used to cost an arm and a leg and covered everything, but today you can select the cover you need or can afford. You can choose from hospital cover for planned procedures and emergencies to hospital cover with a small savings facility towards day-to-day costs. In my experience of helping clients select the right plan for their needs, I have seen far too much focus on day-to-day expenses and an ignorance of emergency costs. Worst case scenario your dentist bill will be a few thousand rand (and 90% of the time you can make a payment arrangement). However, the cost incurred in an emergency could set you back millions. In 2013, Discovery Health's biggest medical claim was over 6 million rand. On average, the
read more
Leave a Reply