The R3.2 trillion set aside for infrastructure – which includes 43 major projects – will not only drive economic change, but also have a positive impact on the growth of South Africa’s short-term insurance sector. This is according to Adam Samie, CEO of Lion of Africa Insurance, who says improved infrastructure will mitigate risks from …. »
A surprise announcement included in the Budget Speech is that the withholding tax on dividends will be introduced, from 1 April 2012, at 15% and not at the originally announced rate of 10%. Royalty withholding tax will be increased from 12% to 15%. Interest withholding tax will also be introduced on 1 January 2013, not …. »
If there were any surprises in this year’s budget, they were primarily on the positive side. The Minister not only stuck to his previously announced intentions to proceed with consolidating the finances of the South African government, albeit at a relatively slow pace so as not the jeopardise the expected gradual recovery in the economy, …. »
Derick Ferreira, Marketing Manager of the Broker Distribution division at Old Mutual comments on Pravin Gordhan’s budget speech of 2012: The 2012 budget was delivered in an environment where economic uncertainty will remain with us for a while. The challenge, as Minister Pravin Gordhan puts it, was to ‘write a new story about SA – …. »
Overall “Trusts continue to be hammered in respect of Capital Gains Tax which does not bode well for wealth creation.” – David Nathan, senior partner Grant Thornton “We were disappointed that dividend tax has effectively been increased by 50% (from 10% to 15%). STC used to be payable by companies at 10% of the dividend …. »
Des Kruger, Director: Tax at Webber Wentzel, comments on key announcements made at the 2012 National Budget Speech. “This has come as quite a shock given that all previous announcements and the law as it stands at present indicate a 10% rate. The proposed 50% increase in the dividends tax rate to 15% so late …. »
As announced in last year’s budget, income tax deductions for medical scheme contributions for taxpayers below 65 years will be converted into such credits. Monthly tax credits will be increased from R216 to R230 for the first two beneficiaries and from R144 to R154for each additional beneficiary with effect from 1 March 2012. It is …. »
There is increasing focus in this year’s budget review on high net individuals. They are perceived as “abusers” of share incentive schemes .They will be worse off after the proposals, despite the “modest” changes proposed by Finance Minister Pravin Gordhan. These include the 15% dividend tax, an unexpected 50% increase from the expected rate, capital …. »