Budget Highlights for 2021/22
Individual Tax – Budget Highlights for 2021/22
- 65 years and under = R23 800
- 65 years and older = R34 500
Medical tax credits
- R3 984 per person for the first 2 members
- R2 688 per person for each additional member
New tax tables and rebates – Budget Highlights for 2021/22
Companies and Trusts
- Tax rate for companies to be lowered from 28% to 27% from April 2022
- Tax rate for trusts is at 45%
- Transfer duty remains unchanged
- Exempt up to R100 000 per annum
- Donations tax payable at 20% on a donation not exceeding R30 million and 25% where it exceeds R30 million by donor
Capital Gains Tax
CGT inclusion rates remain unchanged:
- For individuals and special trusts 40%
- Companies 80%
Value added Tax
Tax rate remains unchanged at 15%.
- Other trusts 80%
Exclusions for individuals remain unchanged:
- Annual exclusion = R40 000
- Exclusion on death = R300 000
- Primary residence = R2 million
- Small business exclusion (assets up to R10 million) = R1.8 million
- Tax rate remains unchanged at 20%.
- Contributions are deductible – limited to the greater of 27.5% of taxable income or remuneration and the lower of R350 000 or 27.5% of taxable income before taxable capital gain.
Other increases – Budget Highlights for 2021/22
- Fuel increase by 15 cents per litre (from 7 April 2021)
- RAF levy increase by 11 cents per litre (from 7 April 2021)
- UIF contribution ceiling increase to R17 711.58 per month (from 1 March 2021)
- Plastic bag levy reduced to 12.5 cents per bag for bio-based plastic bags (date to be announced)
- 8% increase in specific excise duties on tobacco products and alcoholic beverages
Venture Capital Company tax incentive
- No extension of the venture capital company tax incentive after 30 June 2021.
SARS interest rate
Click here to download our 2021/2022 Tax Guide.