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Income Tax Rates

March 27, 2015
income tax rates

Every year we post the income tax rates for the current tax season. This year there is possibly more reason to take note of the changes as during the recent Budget Speech it was announced that for the first time in 20 years, income tax rates would be increased.

The first increase since 1995 sees personal income tax rise by one percent on annual salaries above R181 900 and the top marginal tax rate pushed up to 41%.

The tables below provide all the details you need to get an idea of the increases across the different tax brackets.

Income Tax Rates for the period 1 MAR 2015 to 29 FEB 2016

Taxable Income Rates of Tax
R0 – R181 900 + 18% of each R1
R181 901 – R284 100 R32 742 + 26% of the amount above R181 900
R284 101 – R393 200 R59 314 + 31% of the amount above R284 100
R39 3201 – R550 100 R93 135 + 36% of the amount above R393 200
R550 101 – R701 300 R149 619 + 39% of the amount above R550 100
R701 301 and above R208 587 + 41% of the amount above R 701 300

Tax Rebates

Rebate
Primary R13 257
Secondary (Persons 65 and older) R7 407
Tertiary (Persons 75 and older) R2 466

Tax Thresholds

Age Tax Threshold
Below age 65 R73 650
Age 65 to 75 R114 800
Age 75 and over R128 500

Comparative Tax Rates

Rates of Tax 2014 2015 2016
NATURAL PERSONS
Maximum marginal rate 40% 40% 41%
• Reached at a taxable income 638 600 673 100 701 300
Minimum rate 18% 18% 18%
• Up to taxable income of 165 500 174 550 181 900
• CGT inclusion rate 33.3% 33.3% 33.3%
COMPANIES AND CC’s
• Normal tax rate 28% 28% 28%
• Dividends Tax 15% 15% 15%
• CGT inclusion rate 66% 66% 66%
TRUSTS (other than special trusts)
• Flat rate 40% 40% 41%
• CGT inclusion rate 66.6% 66.6% 66.6%
SUNDRY
• Donations Tax 20% 20% 20%
• Estate Duty 20% 20% 20%
SMALL BUSINESS CORPORATIONS
Maximum marginal rate 28% 28% 28%
• Reached at a taxable income 550 000 550 000 550 000
Minimum rate 0% 0% 0%
• Up to taxable income of 67 111 70 700 73 650
MICRO BUSINESS
Max Rate of Tax 6% 6% 6%
• On Turnover of 750 000 750 000 750 000
Minimum Rate 0% 0% 0%
• Up to taxable income of 150 000 150 000 335 000

Tax Tables 2013 – 2015

Each year we publish the income tax rates for your reference. Select from the links below to view our previous blogs covering tax tables:

Income Tax Rates 2014/2015

Income Tax Rates 2013/2014

Income Tax Rates 2012/2013

Free Pocket Tax Guide

All the above information and more is available in a FREE Dirmeik Consulting Pocket Tax Guide that is available to download here: Free Pocket Tax Guide.

Need Assistance?

If you are struggling to make sense of how this applies to your income or need advice or assistance submitting a tax return, call Dirmeik Consulting on 021 421 4444.


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