Source:           Budget Speech 2008

                        (full text available on www.info.gov.za)

CAPITAL GAINS TAX

The annual exclusion, i.e. amount deductible from a capital gain (or loss) before calculating the tax on it, will be increased from R15 000 to R16 000. 

PERSONAL INCOME TAX

Changes:

•       personal income tax schedules are to be revised to provide tax benefits

•       the annual income threshold for income tax will be raised to R46 000 for people under 65 years of age, and to R74 000 for those 65 and older

•       the tax-free threshold for interest and dividend income will be raised to R19 000 for under-65s and to R27 000 for those 65 and older.

SOCIAL PENSIONS

To create gender equality, the age at which men qualify for social (state) pensions is to be lowered from 65 to 60, in the following stages:  to 63 this year;  to 61 in 2009;  and to 60 in 2010.

STAMP DUTY

No changes were announced.

TRANSFER DUTY

No changes were announced.

VALUE ADDED TAX

To reduce the administrative burden on small businesses:

•       a "presumptive turnover tax" will be introduced as an alternative to income tax and VAT for businesses with a turnover of less than R1 000 000 p.a.

•       the VAT threshold for farmers and businesses who submit VAT returns every six months and four months respectively, will be raised from R1 200 000 to R1 500 000

•       the annual turnover threshold for registering for VAT will be raised from R300 000 to R1000000. 

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