10 POINTS FROM THE BUDGET SPEECH

The VAT increase from 14% to 15%, which comes into effect on April 1 Movement in the bottom three tax brackets, albeit below inflation, should be taken note of. The increased fuel levy that will go up by 52 cents, will impact on all consumers, including your clients, and therefore must be taken into account.

Ad Valorem Excise Duties (motor vehicles will go up to 30% and cellular telephones will increase to 7% and 9%) and Donations Tax rates (donations over R30-million will be subject to donations tax of 25%) will increase from March 1st. It was proposed to adjust Donations Tax and Estate Duty (will increase from 20% to 25% for estates worth R30-million or more) to address the issue of using trusts and loan accounts to perhaps avoid tax liabilities. Treasury is looking at addressing several legislative problems, such as doubtful debt and debt relief provisions. Later this a year a few amendments in this regard can therefore be expected, which will have quite significant administrative and qualification requirements.

Cryptocurrency has become a prominent factor to consider and one of Government’s first challenges will be determining how to regulate it and acquire information. In the short-term we are waiting for guidance from SARS in terms of the correct tax and VAT treatment of cryptocurrency. From April 1st, the vehicle emissions tax will be increased to R110 for every gram above 120 gCO2/km for passenger vehicles and R150 for every gram above 175 gCO2/km for double cab vehicles. Below-inflation increases in medical tax credits for those who are on a private medical aid scheme (from R303 to R310 per month for the first two beneficiaries and from R204 to R209 for the remaining dependents) will be used to fund the National Health Insurance.