We’ve mentioned the increased taxes on items such as alcohol, tobacco and sugar based drinks – not forgetting the 30c/l fuel levy and that applicable to tyres. But what about some of the other changes:
- The inclusion rate for Capital Gains Tax has been increased from 33.3% to 40% (+20%)for individuals and special trusts and from 66.6% to 80% (+20%) for companies and trusts.
- The annual CGT exemption for individuals has been increased from R30 000 to R40 000 (+33.3%)
- The primary rebate has been increased from R13 257 to R13 500 (+1.8%)
- Transfer duty on property over R10m has been increased from 11% to 13% (+20%)
A 3rd amnesty regarding illegally held offshore assets will come into operation between 1 October 2016 and 31 March 2017. A levy of 5% will be applicable on repatriated disclosed assets and 10% on disclosed assets left offshore. Taxpayers will have to back 5 years but no further, regarding declaring taxable income on such assets. Assets disclosed or uncovered outside this amnesty may be subject to a levy of up to 40%.
Regarding trusts, treasury has indicated that the following changes are in the pipeline:
- Assets transferred to a trust by way of a loan will be included in the founder’s estate for duty purposes.
- Interest free loans will be subject to donations tax
- Further measures to prevent income splitting between beneficiaries will be introduced.