2017 has brought more change than we’d expect from January with President Zuma signing off changes on the Tax Amendment Act. Now whilst we are no Tax experts, we thought it would be a good idea to give you a heads up on what is relevant to the majority of our clients. These changes have significant impact on every South African taxpayer; two changes in particular have bearing on many of the companies and individuals we engage with daily so therefore, we have included some changes to this month’s newsletter.
The Taxation Laws Amendment Bill; the Tax Administration Laws Amendment Bill; and the Rates and Monetary Amounts and Amendment of Revenue Laws Bill were introduced to rectify challenges with South Africa’s current tax law. The changes thankfully also offer positive incentives to current taxpayers – who doesn’t need a break?!
Amendments to the Taxation Laws Amendment Bill has brought about change in tax deductions available to businesses. Most notably, the value of the deduction for a person without disability but with qualifications from NQF (National Qualifications Framework) level 1 to NQF level 6 has increased from R30,000 to R40,000.
It has decreased for the same persons but with qualifications from NQF level 7 to NQF level 10 from R30,000 to R20,000.
The value of deductions for persons with disability and with qualifications from NQF level 1 to NQF level 6 has increased from R500,000 to R600,000. It remains unchanged for the same persons with qualifications from NQF level 7 to NQF level 10 at R50,000.
A R20 million cap on total claims per employer has now also been introduced.
The Unemployment Insurance Amendment Act has also experienced some changes. The main purpose of change to this legislation is to amend the Unemployment Insurance Act so as to provide for the extension of the unemployment insurance benefits to learners who are undergoing learnership training.
As I mentioned in my opening paragraph, we have no dexterity in Tax, but we see a number of benefits on offer to many of you! Should you require advice specifically to your Tax needs, please contact your own bookkeeper or Tax advisor.
How can we help you achieve your goals this year knowing what you do know now? Ensure that you’re ahead of the pack this year and maintain your accreditation. Please, let us know if you need any help!