Wealthy individuals to pay more tax
03 March 2015
Posted by: Author: Ingé Lamprecht
Author: Ingé Lamprecht (Moneyweb)
‘Tax relief for those earning less than R450 000 a year.’
Personal income tax rates will be raised by one percentage point for all individuals who earn more than R181 900 a year.
This means that all individuals outside of the entry-level tax bracket will see their tax rate adjusted upwards.
"This raises tax by R21 a month for a taxpayer below age 65 with an annual income of R200 000. Those earning R500 000 would pay R271 a month more, and at R1.5 million a year the tax increase is R1 105 a month,” finance minister Nhlanhla Nene said.
"However, tax brackets, rebates and medical scheme contribution credits will be adjusted for inflation, as in previous years. The net effect is that there will be tax relief below about R450 000 a year, while those with higher incomes will pay more in tax,” he said.
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This article first appeared on moneyweb.co.za.