Wed Oct 26 09:40:45 SAST 2016

Marginal rate stays at 40%

By unknown | Feb 21, 2008 | COMMENTS [ 0 ]

Bryan Hirsch

Bryan Hirsch

The maximum marginal rate stays at 40percent and is reached where taxable income exceeds R490000, up from R450000.

The marginal rate is the figure from where all income is taxed at 40percent. The minimum rate of tax remains at 18percent on income not exceeding R122500 a year, up from R112500.

The primary rebate has been increased to R8280, up from R7740. The additional rebate for people 65 and older has also been increased to R5040 from R4680.

The tax-free portion of interest income has been increased to R19000 for taxpayers under 65 and to R27500 for those 65 and older.

Taxpayers older than 65 continue to be exempt from the payment of provisional tax, provided their taxable income does not exceed R80000 a year and is derived solely from salary, interest, dividends and rental.

Liability for tax now starts at an income of R46000 a year, up from R43000, for those younger than 65. But from 65 it is R74000, up from R69000.


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