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Tax Tables 2018-2019
For South Africa
Income Tax: Individuals and Trusts
|Taxable Income||Rates of tax|
|0 - 195 850||18 % of taxable income|
|195 851 - 305 850||35 253||+ 26% of taxable income above 195 850|
|305 851 - 423 300||63 853||+ 31% of taxable income above 305 850|
|423 301 - 555 600||100 263||+ 36% of taxable income above 423 300|
|555 601 - 708 310||147 891||+ 39% of taxable income above 555 600|
|708 311 - 1 500 000||207 448||+ 41% of taxable income above 708 310|
|1 500 001 and above||532 041||+ 45% of taxable income above 1 500 000|
|Primary Rebate||R14 067|
|Secondary (Persons 65 and older)||R7 713|
|Tertiary (Persons 75 and older)||R2 574|
|Persons under 65||R78 150|
|Persons of 65 - 74 years||R121 000|
|Age 75 and older||R135 300|
Medical Scheme Fees Tax Credits
|Each additional dependant||R209|
Subsistence Allowances and Advances
Where the recipient is obliged to spend at least one night away from his/her usual place of residence on business and the accommodation to which that allowance or advance is granted to pay for:
- meals and incidental costs, an amount of R416 per day is deemed to have been expended;
- incidental costs only, an amount of R128 for each day.
The rate for foreign travel will be gazetted soon and can be found on www.sars.gov.za under the Legal Council tab.
Table for Calculation of Rate per km/Travel Allowance
|Value of the vehicle (including VAT)||Fixed Cost||Fuel Cost||Maintenance Cost|
|0 - 85 00||28 352||95.7||34.4|
|85 001 - 170 000||50 631||106.8||43.1|
|170 001 - 255 000||72 983||116.0||47.5|
|255 001 - 340 000||92 683||124.8||51.9|
|340 001 - 425 000||112 443||133.5||60.9|
|425 001 - 510 000||133 147||153.2||71.6|
|510 001 - 595 000||153 850||158.4||88.9|
|exceeding 595 000||153 850||158.4||88.9|
Prescribed Rate for Reimbursive Kilometres
The SARS prescribed rate per kilometer increased from R3.55 to R3.61.
The Taxation Laws Amendment Act, 2017 and the Tax Administration Laws Amendment Act, 2017 was promulgated on 18 December 2017. The Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2017 was promulgated on 14 December 2017. Here is a summary of the most important changes affecting payroll.
Reimbursive Travel Allowance
From March 2018, 100% of the portion of the reimbursive travel allowance that exceeds the prescribed rate per kilometre (rate per kilometre for the simplified method, fixed by the Minister of Finance by notice in the Gazette) will be included in remuneration and will be subject to PAYE, UIF and SDL.
Employer Provided Bursaries
From March 2017, the exemption thresholds for bursaries granted by the employer (or associated institution in relation to the employer) to a relative (without a disability) of an employee have increased to the following amounts:
- The scholarship or bursary is not exempt if the remuneration proxy exceeds R600 000 (changed from R400 000).
- If the remuneration proxy does not exceed R600 000 (changed from R400 000), then the first R20 000 (changed from R15 000) of a scholarship or bursary in respect of grade R to grade twelve or a qualification to which an NQF level from 1 up to and including 4 has been allocated, is exempt from normal tax.
- If the remuneration proxy does not exceed R600 000 (changed from R400 000), then the first R60 000 (changed from R40 000) of a scholarship or bursary in respect of a qualification to which an NQF level from 5 up to and including 10 has been allocated, is exempt from normal tax.
The new thresholds must be backdated to March 2017.
From March 2018, there will be different exemption thresholds for bursaries granted by the employer (or associated institution in relation to the employer) to an individual with a disability who is a family member of an employee who is liable for family care and support of that individual, namely:
- The scholarship or bursary is not exempt if the remuneration proxy exceeds R600 000.
- If the remuneration proxy does not exceed R600 000, then the first R30 000 of a scholarship or bursary in respect of grade R to grade twelve or a qualification to which an NQF level from 1 up to and including 4 has been allocated, is exempt from normal tax.
- If the remuneration proxy does not exceed R600 000, then the first R90 000 of a scholarship or bursary in respect of a qualification to which an NQF level from 5 up to and including 10 has been allocated, is exempt from normal tax.
Certain Dividends Included in Remuneration
Effective 18 December 2017, dividends as specified in paragraph (kk) of the proviso of section 10(1)(k)(i) of the Income Tax Act are included in remuneration and are subject to PAYE, UIF and SDL.
Directive for Certain Dividends Included in Remuneration
From March 2018, employers must apply for a directive, using directive application form IRP3(s), to acquire the PAYE amount to be withheld from dividends that are not exempt (paragraph (dd), (ii), (jj) and (kk) of the proviso of section 10(1)(k)(i)).
Application of the R350 000 Annual Monetary Cap Amount
An employee is allowed a tax deduction on the total contribution amount (employee and deemed employee contribution) towards a retirement fund, limited to the lessor of:
- 27.5% of remuneration (excluding retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit and severance benefit), or
- R350 000 per annum.
From March 2018, the legislation forces to ‘spread’ the R350 000 cap amount across the tax year using a cumulative calculation.
The cumulative calculation of the R350 000 monetary cap amount applies for employees’ tax purposes, and any unused portion will be taken into account on assessment.
Exempt Foreign Services Income
From March 2020, certain remuneration paid/accrued to a resident employee by any employer (of private sector companies only) in respect of employment services rendered on behalf of the employer in any country outside South Africa will be exempt from PAYE if:
- the remuneration received for foreign services rendered does not exceed one million rand, and
- the employee is outside South Africa for a period (or periods) exceeding 183 full days in any 12 months, and
- the employee is outside South Africa for a continuous period exceeding 60 full days in total in that period of 12 months;
subject to a double taxation agreement if such an agreement exists.
Right of Use of Asset Fringe Benefit – Clothing now Excluded
From March 2018, the amended legislation confirms our interpretation that any use of employer provided ordinary clothing (uniform that is not clearly distinguishable from ordinary clothing) will result in a taxable fringe benefit value.
Bargaining Council Tax Relief
Some bargaining councils have not withheld PAYE from holiday, sick leave and end of year payments. Their liabilities for penalties and interest put these bargaining councils at risk of closure and therefore, a certain level of relief is provided:
- Non-compliant bargaining councils are required to pay a bargaining council levy of 10% of the total employees’ tax that should have been withheld from all payments made by the bargaining councils to their member between 1 March 2012 and 28 February 2017.
The 5-year period is linked to the period of record keeping required in terms of section 29 of the Tax Administration Act.
Bargaining councils must submit a return and pay the bargaining council levy to SARS on or before 1 September 2018.
Bargaining councils must be fully tax compliant from assessment year 2018 onwards and will not be afforded relief in future, this is a once-off relief concession.
Employment Tax Incentive (ETI)
From March 2018, ‘employed and remunerated’ hours in terms of wage, for employees without a wage regulating measure, refers to ordinary/employed hours only and additional hours in excess of ordinary hours (such as overtime) should not be taken into account when determining the ‘employed and remunerated’ hours for wage.
Unemployment Insurance Fund Contributions (UIF)
Effective March 2018, the following UIF exemptions are no longer applicable and these employees must contribute towards UIF:
- learners (learners employed according to section 18(2) of the Skills Development Act), and
- persons who will be repatriated at the end of the period of service.
Postponement of the Annuitisation of Provident Fund Pay-Outs to 1 March 2019
The compulsory annuitisation requirement of provident funds is postponed for another year, from March 2018 to March 2019. For more information on all the changes, please read the detailed document here.
For more information on all the changes, please read the detailed document here.
Taxation Laws Amendment Act, 2017
Tax Administration Laws Amendment Act, 2017
Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2017
National Budget Speech, 2018
Although care has been taken with the preparation of this document, Intuit Inc. makes no warranties or representations as to the suitability or quality of the documentation or its fitness for any purpose and the client uses this information entirely at own risk.