Page 699 - SAIT Compendium 2016 Volume1

RATES OF NORMAL TAX
RATES OF NORMAL TAX
Schedule 1 to Act 13 of 2015
(Sections 1 and 3)
1. The rate of tax referred to in section 3 (1) to be levied in respect of the taxable income (excluding any retirement fund lump sum bene t, retirement fund lump sum withdrawal bene t or severance bene t) of any natural person, deceased estate, insolvent estate or special trust (other than a public bene t organisation or recreational club referred to in paragraph 4) in respect of any year of assessment commencing on 1 March 2015 or ending on 29 February 2016 is set out in the table below:
Taxable income
Rate of tax
Not exceeding R181 900
18 per cent of taxable income
Exceeding R181 900 but not exceeding R284 100
R32 742 plus 26 per cent of amount by which taxable income exceeds R181 900
Exceeding R284 100 but not exceeding R393 200
R59 314 plus 31 per cent of amount by which taxable income exceeds R284 100
Exceeding R393 200 but not exceeding R550 100
R93 135 plus 36 per cent of amount by which taxable income exceeds R393 200
Exceeding R550 100 but not exceeding R701 300
R149 619 plus 39 per cent of amount by which taxable income exceeds R550 100
Exceeds R701 300
R208 587 plus 41 per cent of amount by which taxable income exceeds R701 300
2. The rate of tax referred to in section 3 (1) to be levied in respect of the taxable income of a trust (other than a special trust or a public bene t organisation referred to in paragraph 4) in respect of any year of assessment commencing on 1 March 2015 or ending on 29 February 2016 is 41 per cent.
3. The rate of tax referred to in section 3 (1) to be levied in respect of the taxable income of a company (other than a public bene t organisation or recreational club referred to in paragraph 4 or a small business corporation referred to in paragraph 5) in respect of any year of assessment ending during the period of 12 months ending on 31 March 2016 is, subject to the provisions of paragraph 10, as follows—
(a) 28 per cent of the taxable income of any company (excluding taxable income referred to in subparagraphs (b), (c) and (d));
(b) in respect of the taxable income derived by any company from mining for gold on any gold mine with the exclusion of so much of the taxable income as the Commissioner determines to be attributable to the inclusion in the gross income of any amount referred to in paragraph (j) of the de nition of ‘gross income’ in section 1 of the Income Tax Act, 1962, but after the set-off of any assessed loss in terms of section 20 (1) of that Act, a percentage determined in accordance with the formula:
y = 34 – _1_70_ x
in which formula y represents such percentage and x the ratio expressed as a percentage which the taxable income so derived (with the said exclusion, but before the set-off of any assessed loss or deduction which is not attributable to the mining for gold from the said mine) bears to the income so derived (with the said exclusion);
(c) in respect of the taxable income of any company, the sole or principal business of which in the Republic is, or has been, mining for gold and the determination of the taxable income of which for the period assessed does not result in an assessed loss, which the Commissioner determines to be attributable to the inclusion in its gross income of any amount referred to in paragraph (j) of the de nition of ‘gross income’ in section 1 of the Income Tax Act, 1962, a rate equal to the average rate of normal tax or 28 per cent, whichever is higher: Provided that for the purposes of this subparagraph, the average rate of normal tax shall be determined by dividing the total normal tax (excluding the tax determined in accordance with this subparagraph for the period assessed) paid by the company in respect of its aggregate taxable income from mining for gold on any gold mine for the period from which that company commenced its gold mining operations on that gold mine to the end of the period assessed, by the number of rands contained in the said aggregate taxable income; and
(d) in respect of the taxable income derived by any company from carrying on long-term insurance business in respect of its—
(i) individual policyholder fund, 30 per cent; and
(ii) company policyholder fund, corporate fund and risk policyholder fund, 28 per cent.
4. The rate of tax referred to in section 3 (1) to be levied in respect of the taxable income of any public bene t organisation that has been approved by the Commissioner in terms of section 30 (3) of the Income Tax Act, 1962, or any recreational club that has been approved by the Commissioner in terms of section 30A (2) of that Act is 28 per cent— (a) in the case of an organisation or club that is a company, in respect of any year of assessment ending during the period
of 12 months ending on 31 March 2016; or
SAIT CompendIum oF TAx LegISLATIon VoLume 1 691
RATES AND MONETARY THRESHOLDS