It has often been said that inflation is the destroyer of wealth. To put this statement into a tax perspective, it is interesting to have a look back at historical rates of tax and related interest rates. It is, of course, true that earnings have also increased over the years, but it is nevertheless interesting to see from where we have come and even more interestingly, where the 2020 budget presentation, due in February 2020, will lead us.
Rate of tax for natural persons:
| 1996 | |
| Taxable income (R) | Rate of tax (R) |
| 1 – 5 000 | 17% of each R1 |
| 5 001 – 10 000 | 850 + 18% of the amount above 5 000 |
| 10 001 – 15 000 | 1 750 + 19% of the amount above 10 000 |
| 15 001 – 20 000 | 2 700 + 20% of the amount above 15 000 |
| 20 001 – 30 000 | 3 700 + 21 % of the amount above 20 000 |
| 30 001 – 40 000 | 5 8700 + 31% of the amount above 30 000 |
| 40 001 – 50 000 | 8 900 + 42% of the amount above 40 000 |
| 50 001 – 70 000 | 13 100 + 43% of the amount above 50 000 |
| 70 001 – 80 000 | 21 700 + 44% of the amount above 70 000 |
| 80 001 and above | 26 100 + 45% of the amount above 80 000 |
| 2002 | |
| Taxable income (R) | Rate of tax (R) |
| 1 – 38 000 | 18% of each R1 |
| 38 001 – 55 000 | 6 840 + 26% of the amount above 38 000 |
| 55 001 – 80 000 | 11 260 + 32% of the amount above 55 000 |
| 80 001 – 100 000 | 19 260 + 37% of the amount above 80 000 |
| 215 001 and above | 72 660 + 42% of the amount above 215 000 |
| 2010 | |
| Taxable income (R) | Rate of tax (R) |
| 1 – 140 000 | 18% of each R1 |
| 140 001 – 221 000 | 25 200 + 25% of the amount above 140 000 |
| 221 001 – 305 000 | 45 450 + 30% of the amount above 221 000 |
| 305 001 – 431 000 | 70 650 + 35% of the amount above 305 000 |
| 431 001 – 552 000 | 114 750 + 38% of the amount above 431 000 |
| 552 001 and above | 160 730 + 40% of the amount above 552 000 |
Rate of tax for companies:
| 2017 | ||||
| Year of assessment | Rate of tax | Surcharge | Transitional levy (1) | UPT (2) |
| 1981 | 40% | 5% | – | 33.3% |
| 1992 | 48% | – | – | – |
| 1995 | 35% | – | 5% | – |
| 2000 | 30% | – | – | – |
| 2009 | 28% | – | – | – |
- To finance transitional costs incurred during the 1993 and 1994 transitional process to democracy, a once-off transitional levy was charged during the 1995 year of assessment. This levy was calculated as a percentage of taxable income in excess of R50 000 before set-off of any balance of assessed loss was brought forward.
- Undistributed profits: UPT was payable by companies at the rate of 33⅓% on the amount by which the distributable profit of a company exceeded the dividends distributed during the specified period relating to the year of assessment. In light of the exemption of income in the form of dividends in the hands of natural persons and CCs, this tax was no longer warranted as of 1 April 1990.
Excise duty:
| 2006 | |
| Products | Duty |
| Malt beer | 3364,98 c/l absolute alcohol (aa) |
| Sorghum beer | 7,82c/kg |
| Spirits (average) | 5042,01c/li aa |
| Sparkling wine | 387,99c/li |
| Fortified wine | 263,14c/li |
| Unfortified wine | 140,52c/li |
| Traditional African Beer Powder | 34,7c/kg |
| Other fermented beverages e.g. ciders | 168,24c/li |
| 2012 | |
| Products | Duty |
| Malt beer | R53.97/l absolute alcohol (aa) |
| Traditional beer | 7.82 c/l |
| Spirits (average) | R93.03/l aa |
| Sparkling wine | R6.97/l |
| Fortified wine | R4.33/l |
| Unfortified wine | R2.32/l |
| Traditional beer powder | 34.7 c/kg |
| Other fermented beverages e.g. ciders | R2.71/l |
| 2017 | |
| Products | Duty |
| Malt beer | R86.39/li aa |
| Traditional beer | 7.82c/li |
| Spirits (average) | R175.19/li aa |
| Sparkling wine | R11.46/li |
| Fortified wine | R6.17/li |
| Unfortified wine | R3.61/li |
| Traditional beer powder | 34.7 c/kg |
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)