The new table for transfer duty is as follows: VALUE OF PROPERTY RATE
0 – R900 000 0% R900 001 – R1250 000 3% of the value above R900 000 R1250 001 – R1750 000 R10 500 + 6% of the value above R1250 000 R1750 001 – R2250 000 R40 500 + 8% of the value above R1750 000 R2250 001 – R10 000 000 R80 500 + 11% of the value above R2250 000 R10 000 001 and above R933 000 + 13% of the value above R10 000 000 Some of the other tax adjustment highlights included: • An increase of between 6% - 10% for “sin taxes” • An increase in the fuel levy by 30 cents • An increase in dividend withholding tax to 20% (up from 15%) • The introduction of an income tax rate of 45% for individuals of a taxable income above R1.5 million per annum • The introduction of new maximum effective capital gains tax rates including: o 18% for individuals and specified trusts o 22.4% for companies o 36% for non-specified trusts Of particular note was the Ministers resolution that VAT will remain at 14%, a topic which was the subject of much public debate leading up to the speech.
ESI will of course be keeping up to date with the developments as they happen and keep you informed.
Kind regards, Esterhuyse Samuels Inc. Attorneys