2017 BUDGET HIGHLIGHTS
The main tax proposals include the following:
- A new top personal income tax (PIT) rate of 45% for individuals with a taxable income above R1.5 million.
- The tax rate on trusts (other than special trusts which are taxed at rates applicable to individuals) will increase from 41% to 45%.
- An increase in the dividend withholding tax rate from 15% to 20%, effective from 22 February 2017.
- The general fuel levy will increase by 30 cents per litre on 5 April 2017 and 9 cents per litre on the road accident fund levy. This is likely to have an inflationary effect on the economy given the knock on effect on the cost of transport which will translate into an increase in the cost of goods to the consumer.
- A 6% to 10% increase in excise duties on alcoholic beverages and tobacco products.
- Reiterating the introduction of tax on sugary beverages during the course of this year. The proposed design has been revised to include both intrinsic and added sugars.
- The National Gambling Tax Bill will be taken to Cabinet in 2017
Contact Merlin Accountants to find out more about how this may impact you.