Budget Speech paves the way for business development in SA

Today’s Budget Speech has helped pave the way for business development in 2012. This is according to Robert Gad, tax director at ENS (Edward Nathan Sonnenbergs), who welcomes these proposals by Finance Minister Pravin Gordhan to encourage development, investment and employment in South Africa. “This is a budget with a mixture of positive and negative […]

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The Budget and your medical aid rands

By Johan Lombard, Actuarial Specialist – Momentum Health One of the most interesting changes to taxation legislation to be implemented in the 2012/2013 tax year is the change in treatment of medical scheme contributions. Up to now, taxpayers qualified for a set monthly deduction on their taxable income, based on their family composition. It was […]

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OMAC Budget comment – tax credits for medical aid contributions

As from 1 March 2012 a tax credit for contributions to medical schemes will be introduced for taxpayers younger than 65, at a rate of R230 a month for the first two beneficiaries and R154 each for additional beneficiaries. Taxpayers 65 years and older and people with disabilities will be included in the second phase […]

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Webber Wentzel Budget comments

Des Kruger, Director: Tax at Webber Wentzel, comments on key announcements made at the 2012 National Budget Speech. On the increase in the dividends tax rate “This has come as quite a shock given that all previous announcements and the law as it stands at present indicate a 10% rate. The proposed 50% increase in […]

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PWC Post Budget tax comments – medical tax credits

As announced in last year’s budget, income tax deductions for medical scheme contributions for taxpayers below 65 years will be converted into such credits. Monthly tax credits will be increased from R216 to R230 for the first two beneficiaries and from R144 to R154for each additional beneficiary with effect from 1 March 2012. It is […]

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PWC Post Budget comment – focus on high net worth individuals

There is increasing focus in this year’s budget review on high net individuals. They are perceived as “abusers” of share incentive schemes .They will be worse off after the proposals, despite the “modest” changes proposed by Finance Minister Pravin Gordhan. These include the 15% dividend tax, an unexpected 50% increase from the expected rate, capital […]

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Two compelling questions for the Budget

What should the Minister be doing to encourage foreign direct investment in South Africa? Nola Brown, Associate Director, Tax at Webber Wentzel says: “Considerable progress has been made with regard to the stated intention to make South Africa an attractive spring board into, mostly, Africa with the introduction of the ‘headquarter company’ regime. In essence, […]

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New dividends tax system – companies need to get to know their shareholders

Companies can expect to face an administrative burden in the light of the new dividends tax system to be implemented on 1 April, says Professional Services Firm PwC. “Organisations such as long-term insurers and collective investments schemes will be faced with the onerous task of administering and collecting the new tax”, says Charl du Toit, […]

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Critical for Budget speech to address NHI funding concerns

One of the much anticipated elements of this week’s National Budget speech is how the government plans to fund its National Health Insurance initiative, particularly with this year’s allocation already showing a shortfall from what was originally announced. This is according to Clayton Samsodien, Managing Director of Genesis Capital Group’s health care subsidiary – Genesis […]

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Sin taxes we’d like to see

By Bernard Sacks, Tax Partner, Mazars No doubt the Minister of Finance will once again find ways to increase the taxes on tobacco and alcohol, but why stop at these particular toxins, when there are so many others that are just as harmful? Take animal fat, for example, a major contributor to obesity and heart […]

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