The budget 2012 - in a nutshell

Capital Gains Tax for individuals and special trusts will be increased with effect from
1 March 2012 from 25 to 33.3 per cent.

As from 1 March 2012 the tax credit for contributions to medical schemes will be
introduced, at a rate of R230 a month for the first two beneficiaries and R154 each for
additional beneficiaries.

The secondary tax on companies will be terminated on 31 March 2012 and a
withholding tax on dividends will be implemented on 1 April 2012 at 15%.

With effect from next month, qualifying micro-businesses (within the R1 million
turnover limit) will be able to pay turnover tax, VAT and employees’ tax twice a
year. This means that the number of returns and payments a year will be
reduced from about 18 to just two.

The levy on electricity generated from non-renewable sources will increase by 1c/kWh
as from 1 July 2012

The general fuel levy on petrol and diesel will be increased by 20c with effect from
4 April 2012, and the Road Accident Fund will increase by 8c to 88c/l.

The Square Kilometre Array project will qualify for VAT relief.

It is proposed that a national tax based on gross gambling revenue should be introduced effective from 1 April 2013, as
an additional 1 per cent levy on a uniform provincial gambling tax base.

The increases in duties on tobacco products will be between 5 and 8 per cent.

The excise on spirits will increase by 20 per cent to R36 for
a 750 ml bottle this year, the tax on beer goes up by 10 per cent to R1.01 for a 340 ml
can and wine will contribute 8 per cent more.

An ad valorem excise duty at a rate of 7 per cent
will apply to small aeroplanes and helicopters with a mass below 5 000 kg. A duty of
10 per cent will apply to motorboats and sailboats longer than 10 metres.

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During 2012, South Africa will establish a dedicated ombud for tax matters. The office
is intended to provide taxpayers with a low-cost mechanism to address administrative
difficulties that cannot be resolved by SARS.

National health insurance is to be phased in over a 14-year period beginning in
2012/13. The new system will provide equitable health coverage for all South Africans.
Over time, the new system will require funding over and above current budget
allocations to public health. Funding options include an increase in the VAT rate, a
payroll tax on employers, a surcharge on the taxable income of individuals, or some
combination of the above.

Gauteng Freeway Improvement Programme - The total debt associated with the project is R20 billion. In order to contribute to a
further reduction in the toll burden, a special appropriation of R5.8 billion is now proposed, to be included in 2011/12 expenditure.

As from 1 March 2012 the tax credit for contributions to medical schemes will be
introduced, at a rate of R230 a month for the first two beneficiaries and R154 each for
additional beneficiaries.

Sorry guys I'M DOFF when it comes to this kind of stuff, what does this mean?

Hi GB , if i am correct, when u do your return online, and you capture all details of your IRP document and when you calc your return their will be a auto calc sars will determine if you will get a lower deuction (payable) or increase ( refund to you) based on the new med aid calc rate.

Thanks RS...

gregbucks Wrote:

---

> As from 1 March 2012 the tax credit for
> contributions to medical schemes will be
> introduced, at a rate of R230 a month for the
> first two beneficiaries and R154 each for
> additional beneficiaries.
>
> Sorry guys I'M DOFF when it comes to this kind of
> stuff, what does this mean?


In previous years medical scheme fees were deductable from income whereas from 1 March this year medical scheme fees will no longer be deductible from income but treated as a rebate. I have attached a "frequently asked questions" from SARS relating to your question. Hope it helps.

Attached files Frequently asked questions medical scheme fees tax credit.pdf (83.9 KB)Â

South Africa: Already hard-pressed South African racing punters are to be hit by a hike in betting tax in just over a year's time.

In his budget speech on Wednesday, Finance Minister Pravin Gordhan said: "It is proposed that a national tax based on gross gambling revenue should be introduced effective from April 1 2013 as an additional one per cent levy on a uniform provincial gambling tax base. A similar base will be used to tax the national lottery."

At the moment punters pay a six per cent deduction on winnings and this goes to the various provincial governments who then refund half to racing.

In last year's budget Gordhan proposed an additional 15 per cent withholding tax on all winnings above R25,000 (approximately £2,000) but there was considerable opposition to this from racing and other bodies, and the proposal has yet to be introduced.

A spokesman for online bookmaker hollywoodbets.net said on Thursday: "We expected an increase in the tax rate because it had been rumoured but I am worried about the impact on horseracing. I can see more people switching over to sports betting which at the moment is not taxed."

THanks Mac, I went onto the SARS website...