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Cape Town - Lower income earners will score the biggest slice of tax relief measures announced in Wednesday's Budget.
Of the R6.5bn of tax relief provided for in this year's Budget, 24,6% will be earmarked for taxpayers with an annual income below R150 000 and another 28.8% will be set aside for taxpayers earning between R150 001 and R250 000.
Taxpayers earning between R250 000 and R500 000 will receive 26.2% of the tax breaks, and those with an annual taxable income of more than R500 000 will receive 20.4%.
Statistics released in the Budget's Tax Handbook showed that taxpayers with an annual income above R500 000 accounted for 44% of personal income tax revenue. Taxpayers with an annual income below R250 000 accounted for 30% of personal income tax revenue, while those earning between R250 000 to R500 000 accounted for 26%.
The primary rebate was increased to R10 260 for all individuals, and the secondary rebate - applicable to taxpayers over 65 years old - was upped to R5 675 a year.
The income tax threshold - below which individuals are not liable for personal income tax - was increased to R57 000 of taxable income per year for those below the age of 65, and to R88 528 for those over 65 years.
There was further good news for savers, with Finance Minister Pravin Gordhan increasing the annual tax-free interest income threshold from R21 000 to R22 300. For pensioners (taxpayers over 65 years) the interest income threshold was increased from R30 000 to R32 000.
Tax table:
|
Taxable income |
Rates of tax
|
|
R0 - R140 000
|
18% of each R1
|
|
R140 000 - R221 000
|
R25 200 + 25% of the amount above R140 000 |
|
R221 001 - R305 000
|
R45 450 + 30% of the amount above R221 000 |
|
R305 001 - R431 000
|
R70 650 + 35% of the amount above R305 001 |
|
R431 001 - R552 000
|
R114 750 + 38% of the amount above R431 000 |
|
R552 001 and above
|
R160 730 + 40% of the amount above R552 000 |
Rebates:
|
Primary: |
R10 260
|
|
Secondary:
|
R5 675
|
Tax threshold:
|
Below age 65 |
R57 000
|
|
Age 65 and over:
|
R88 528
|
- Fin24.com