Minister Gordhan delivered his 2013 budget speech today and while trying to ensure an increase in revenue for government spending, he did grant some tax relief for individuals.
The tax rates for individuals for the year ending 28 February 2014 are available on
The primary rebate effective 01 March 2013 is R12 080 while individuals older than 65 will receive an additional R6 750 per annum. The tertiary rebate for individuals older than 75 is R2 250.
A slight increase in the rebate on medical aid contributions was also announced. Employees younger than 65 will now receive a tax credit of R242 for the main member, a further R242 for a spouse and R162 for each additional dependant.
Employees 65 years of age or older still qualify to receive their full medical aid contribution as a tax deduction before PAYE is calculated.
Subsistence allowances paid to employees who travel for business within South Africa, will be tax-free provided the amount paid for meals and incidental costs does not exceed R319 per day. An amount not exceeding R98 per day for incidental costs only will also be exempt.
SARS will also expect less tax returns to be filed since individuals who earn below R250 000 per year from a single employer no longer need to file their returns. Previously, this annual earnings limit was R120 000.
A copy of minister Gordhan’s budget speech as well as the Budget 2013 Tax Guide is available on www.sars.gov.za