Things You Need to Know About the New Tax Laws of 2017
Overview
2017 see the ushering in of new Tax laws in South Africa. This follows President Zuma signing off on three new Tax Amendment Acts, namely:
- Taxation Laws Amendment Bill
- Tax Administration Laws Amendment Bill
- Rates and Monetary Amounts and Amendment of Revenue Laws Bill
Finance Minister Pravin Gordhan has expressed concern about the state of revenue collection in the country.
The South African Revenue Services (SARS) is the tax authority in South Africa and has a mandate to collect tax money from the country’s citizens who are earning above the regulatory tax threshold. The institution has undergone a revamp in recent years in order to improve its systems and processes.
As the tax body in South Africa, SARS is responsible for collecting taxes for qualifying South African citizens. There are various types of taxes to be collected- each with its own deadline. To ensure a smooth process and avoidance of penalties charged, SARS encourages taxpayers to adhere to the rules set.
The introduction of the Tax Amendment Acts is designed to amend major issues and to provide new incentives to current taxpayers.
What you can expect from the new Tax Laws of 2017:
- R3.2 billion is expected to be generated by a net 39c per litre increase in fuel taxes.
- There is a marginal increase in the threshold for taxable income (from R75 000 to R75 750).
- The allowance for tax-free savings accounts has increased to R33 000.
- Companies can expect to pay more Capital Gains Tax (proceeds received after the sale of an asset.)
- SARS will give a 6 month grace period to allow South African citizens to disclose previously undisclosed overseas assets.
- Changes on tax deductions available to businesses have been introduced.
- Income tax will be going up in South Africa for certain individuals. For instance, individuals earning above R1.5 million will be taxed 45% of their income.
