• Anyone earning over R181,900 per year will be taxed by 1% more.
• However, there are tools at your disposal to reduce your tax which can mean that you actually pay less tax than before. eg. Medical Aid membership (Medical Tax Credits), contributions to a Retirement Annuity etc
• Tax Free savings accounts have been launched and Kanan Wealth is committed to ensuring the optimal solutions is made available to all clients.
• Maximum effective Capital Gains Tax is now 13.65% for individuals and Special Trusts; 18.65% for companies and 27.31% for Trusts. In this regard, please ensure that your trusts are most effectively established and managed.
• Transfer duties on properties valued at R2.2m or more have been raised and transfer duties have fallen for properties less than R2.2m. The aim is to enable lower earners to enter the property market.
• Exchange controls have been further raised, enabling individuals to transfer up to R10m per annum offshore. This is positive as, while the Reserve Bank is clearly taxing the wealthy to a greater extent, they are also enabling greater freedom of movement.
• Finally, the amount of household debt is alarmingly high and we encourage all to try to work hard, budget wisely and maximise their savings and investment.