Budget Highlights for 2021/22

Individual Tax – Budget Highlights for 2021/22

Interest exemption

  • 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

Tax Table and Rebates 2021 2022

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 

  • Transfer duty remains unchanged

Donations Tax

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

Dividend Tax

  • Tax rate remains unchanged at 20%.

Retirement Funds 

  • 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

SARS Interest Rate

Click here to download our 2021/2022 Tax Guide.

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