Page 703 - SAIT Compendium 2016 Volume1

monetary thresholds and rebates
INCOME TAX MONETARY THRESHOLDS AND REBATES SUBJECT TO
PERIODIC LEGISLATIVE CHANGE
Extracts from the Explanatory Memorandum on the Taxation Laws Amendment Bill, 2011, as updated by Juta Law staff members: Position as at 1 January 2016.
Table XX: General savings thresholds
Description
(The contents of this column are solely for convenience and shall be of no force or effect)
Reference to Income Tax Act, 1962
Monetary amount
Broad-based employee share plans
Maximum exemption for shares received by an employee
De nition of ‘qualifying equity share’ in section 8B (3)
R50 000
Maximum deduction for shares issued by an employer
The proviso to section 11 (lA)
R10 000
Exemption for interest and certain dividends
In respect of persons 65 years or older, exemption for interest from a source within the Republic
Section 10 (1) (i) (i)
R34 500
In respect of persons younger than 65 years, exemption for interest from a source within the Republic
Section 10 (1) (i) (ii)
R23 800
Annual donations tax exemption
Exemption for donations made by entities
Section 56 (2) (a) and the proviso thereto
R10 000
Exemption for donations made by individuals
Section 56 (2) (b)
R100 000
Capital gains exclusions
Annual exclusion for individuals and special trusts
Paragraph 5 (1) of Eighth Schedule
R30 000
Exclusion on death
Paragraph 5 (2) of Eighth Schedule
R300 000
Exclusion in respect of disposal of primary residence (based on amount of capital gain or loss on disposal)
Paragraph 45 (1) (a) of Eighth Schedule
R2 million
Exclusion in respect of disposal of primary residence (based on amount of proceeds on disposal)
Paragraph 45 (1) (b) of Eighth Schedule
R2 million
Maximum market value of all assets allowed within de nition of small business on dis- posal when person over 55
De nition of ‘small business’ in paragraph 57 (1) of Eighth Schedule
R10 million
Exclusion amount on disposal of small business when person over 55
Paragraph 57 (3) of Eighth Schedule
R1,8 million
Table XXI: Retirement savings thresholds
Description
(The contents of this column are solely for convenience and shall be of no force or effect)
Reference to Income Tax Act, 1962
Monetary amount
Deductible retirement fund contributions
Pension, provident or retirement annuity fund monetary ceiling for contributions
Section 11 (k) (i) (aa)
R350 000 (wef 1 March 2016)
SAIT CompendIum oF TAx LegISLATIon VoLume 1 695
RATES AND MONETARY THRESHOLDS