Tax Rates for Individuals 2017

1 March 2016 to 28 February 2017

Band	Base	Percentage
R0 to R188 000 -->	0 plus	18% of taxable income
R188 000 to R293 600 -->	R33 840 plus	26% of taxable income above R188 000
R293 601 to R406 400 -->	R61 296 plus	31% of taxable income above R293 600
R406 401 to R550 100 -->	R96 264 plus	36% of taxable income above R406 400
R550 101 to R701 300 -->	R147 996 plus	39% of taxable income above R550 100
R701 301 and above -->	R206 964 plus	41% of taxable income above R701 300

Tax threshold

Income below which no tax is paid:

Band	Threshold
Under 65 years of age	R75 000
From 65 to 74 years of age	R116 150
Over 74 years of age	R129 850

Tax Rebates

Primary Rebate for Individuals - R13 500

Secondary Rebate - Persons over 65 years of age - R7 407

Tertiary Rebate - Persons over 75 years of age - R2 466

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 R286 per month for the taxpayer and the first dependent and R192 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 R286 per month for the taxpayer and the first dependent and R192 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 80 000	R26 675	82.4	30.8
80 001 to 160 000	R47 644	92.0	38.6

Tax Guide 2017