Tax Rate for Individuals 2018

Band	Base	Percentage
R0 – R189 880 -->	0 plus	18% of taxable income
R189 881 – R296 540 -->	R34 178 plus	26% of taxable income above R189 880
R296 541 – R410 460 -->	R61 910 plus	31% of taxable income above R296 541
R410 461 – R555 600 -->	R97 225 plus	36% of taxable income above R410 460
R555 601 – R708 310 -->	R149 475 plus	39% of taxable income above R555 600
R708 311 – R1 500 000 -->	R209 032 plus	41% of taxable income above R708 310
R1 500 001 and above-->	R533 625 plus	45% of taxable income above R1 500 000

Tax threshold

Income below which no tax is paid:

Band	Threshold
Under 65 years of age	R75 750
From 65 to 74 years of age	R117 300
Over 74 years of age	R131 150

Tax Rebates

Primary Rebate for Individuals - R13 635

Secondary Rebate - Persons 65 years of age and older - R7 479

Tertiary Rebate - Persons 75 years of age and older- R2 493

Exempt Income

Taxable Interest

1. Under 65 years of age : R23 800
2. 65 years and older :R34 500

A portion of any foreign dividend is exempt which is determined by a formula dependent upon whether the recipient is a natural person, a deceased estate or a special trust.

Deductions

Medical Expenses and Credits

• Where taxpayer is under the age of 65

Members of a medical aid are granted a "tax credit" of R303 per month for the taxpayer and the first dependent and R204 per month for each dependent thereafter. An additional tax credit arises where all medical aid contributions (company and member) plus qualifying medical expenses exceeds four times the fixed tax credit above. In such cases, an additional credit arises if such expenses and contributions exceed 7.5% of the taxpayer's taxable income. The portion in excess of 7.5% of the taxpayer's taxable income shall rank as an additional "tax credit" to be offset against the tax payable on assessment.

• Where taxpayer is 65 years of age or older , or has a disabled dependent

Members of a medical aid are granted a "tax credit" of R303 per month for the taxpayer and the first dependent and R204 per month for each dependent thereafter. An additional tax credit arises where all medical aid contributions (company and member) plus qualifying medical expenses exceeds three times the fixed tax credit above. In such cases, an additional credit arises and is calculated at 33% of all medical aid contributions (company and member) plus qualifying medical expenses. The amount so calculated shall rank as an additional "tax credit" to be offset against the tax payable on assessment.

Retirement Fund Contributions

An employee's total contribution to all retirement funds are limited to 27.5% of remuneration or taxable income(excluding lump-sums received), whichever is greater but capped at an annual limit of R350 000. Employers may make unlimited contributions to retirement fund's on behalf of employees, but these contributions are fringe benefits and are taxed in the hands of the employee as determined by a formula.

Transfers from fund to fund will have no tax consequences.

Travelling allowances and Company Cars

Travelling Allowances

Records distinguishing between business travel and total travel must be maintained by taxpayer's in order to claim a deduction against a travelling allowance. the rates allowed are set out below:

Vehicle value including VAT	Fixed Cost (R)	Fuel(c per km)	Maintenance(c per km)
0 to 85 000	R28 492	91.2	32.9
85 001 to 170 000	R50 924	101.8	41.2
170 001 to 255 000	R73 427	110.6	45.4
255 001 to 340 000	R93 267	118.9	49.6
340 001 to 425 000	R113 179	127.2	58.2
425 001 to 510 000	R134 035	146.0	68.4
510 001 to 595 000	R154 879	150.9	84.9
exceeding 595 000	R154 879	150.9	84.9

Tax Guide 2018