Following the announcement of new tax changes for the 2017\/18 financial year by finance minister Pravin Gordhan, the country’s tax tables have been updated.<\/p>\n
One of the biggest changes announced by the finance minister is the introduction of a new tax bracket, aimed at the country’s wealthy.<\/p>\n
South Africans who earn more than R1.5 million a year will form part of a new tax bracket which\u00a0will be taxed at 45%, on top of limited bracket-creep relief for existing tax brackets.<\/p>\n
Together these changes are expected to raise and additional R16.5 billion in tax revenue, which will cover a large bulk of the R28 billion shortfall. The other R11.5 billion will come form other sources, Gordhan said.<\/p>\n
These other sources include:<\/p>\n
This is how the new tax tables look:<\/p>\n
| Taxable income<\/th>\n | Tax rate<\/th>\n<\/tr>\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Under R189 880<\/td>\n | 18% of taxable income<\/td>\n<\/tr>\n | ||||||||||||||||
| R189 881 – R296 540<\/td>\n | R34 178 + 26% of taxable income above R189 880<\/td>\n<\/tr>\n | ||||||||||||||||
| R296 541 – R410 460<\/td>\n | R61 910 + 31% of taxable income above R296 540<\/td>\n<\/tr>\n | ||||||||||||||||
| R410 461 – R555 600<\/td>\n | R97 225 + 36% of taxable income above R410 460<\/td>\n<\/tr>\n | ||||||||||||||||
| R555 601 – R708 310<\/td>\n | R149 475 + 39% of taxable income above R555 600<\/td>\n<\/tr>\n | ||||||||||||||||
| R708 311 – R1 500 000<\/td>\n | R209 032 + 41% of taxable income above R708 310<\/td>\n<\/tr>\n | ||||||||||||||||
| R1 500 001 and above<\/td>\n | R533 625 + 45%\u00a0 of taxable income above R1 500 000<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n These are the updates to the tax rebates and tax thresholds for 2017\/18<\/p>\n \n
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