By Kevin Yeh, CFP®       Daberistic Financial ServicesCreating Financial Security, Prosperity and Wealth        www.daberi...
Contents• Uncle Pravin’s speech highlights• Uncle Pravin wants your money – Individual  Taxes• Uncle Pravin encourage you ...
Daberistic Financial Services• Authorised financial services provider, FSP #  25477• “One-stop shop” offering  – Life insu...
Our product providers                        Daberistic
Uncle PravinCourtesy: fin24                         Daberistic
What do people say about our uncle’s             speech                    Gordhan did his best                           ...
Pravin’s budget highlight1.   In line with the National Development Plan2.   R7bn tax relief for individual tax payers3.  ...
Pravin’s budget highlight        Budget 2013/14 (in R bn)1,2001,000 800 600                       1149.4           985.7 4...
Pravin’s budget highlight8. Personal tax threshold R67,111 (R63,556)9. Sin taxes go up between 5% and 10%10.Fuel levy up 2...
Pravin’s budget highlight15.Youth employment incentive to be tabled16.Upgrade infrastructure: R827bn17.Moderate employment...
Pravin’s budget highlight15.Youth employment incentive to be tabled16.Upgrade infrastructure: R827bn17.Moderate employment...
Individual Taxes                   Daberistic
Individual taxes – younger than 65                              Daberistic
Personal income tax rate    Taxable Income (R)   Rates of taxR0 – R165,600               18%R165,601 – R258,750         25...
Individual taxesRebatesPrimary (Under age 65)       R12,080Secondary (65 – 75)          R6,750Tertiary (age 75 and over)  ...
Individual taxes• Interest and dividend income  – Annual exemption on interest R23,800 (age <65)    and R34,500 (age 65+)•...
Individual taxes• Retirement fund lump sum withdrawal  benefits – no change    Taxable income (R)   Rate of Tax    0 – 22,...
Individual taxes• Retirement fund lump sum benefits or  severance benefits – no change    Taxable income (R)   Rate of Tax...
Retirement fund reforms• From March 2014:  – Employer contributions as taxable fringe benefits    in the hands of the empl...
Retirement fund reforms• From March 2014:  – Retirement funds must identify appropriate    preservation funds for exiting ...
Retirement fund reforms• From March 2014:  – Vested benefits protected                                 Daberistic
Small business tax relief• Turnover threshold R20m (R14m)     Taxable income (R)   Rate of tax     0 – 67,111           0%...
Where the budget money comes from                          Source               7%          5%                            ...
What does Uncle Pravin want you to do• Pay your dues on time• Preserve your retirement  savings• Save money• Start busines...
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130228 budget presentation february 2013

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A summary of the South Africa Budget Speech 2013-2014 by Minister Pravin Gordhan, the highlights and how it's going to affect you.

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130228 budget presentation february 2013

  1. 1. By Kevin Yeh, CFP® Daberistic Financial ServicesCreating Financial Security, Prosperity and Wealth www.daberistic.com info@daberistic.com Daberistic
  2. 2. Contents• Uncle Pravin’s speech highlights• Uncle Pravin wants your money – Individual Taxes• Uncle Pravin encourage you to start small businesses• What Uncle Pravin wants you to do Daberistic
  3. 3. Daberistic Financial Services• Authorised financial services provider, FSP # 25477• “One-stop shop” offering – Life insurance – Medical aid – Investments – Car and household insurance – Business insurance Daberistic
  4. 4. Our product providers Daberistic
  5. 5. Uncle PravinCourtesy: fin24 Daberistic
  6. 6. What do people say about our uncle’s speech Gordhan did his best Daberistic
  7. 7. Pravin’s budget highlight1. In line with the National Development Plan2. R7bn tax relief for individual tax payers3. Budget deficit at 4.6% in 2013/144. Economic growth 2.7% in 20135. Inflation stable at 5.7% in 20136. Net loan debt 38.6% of GDP in 2013/14 Daberistic
  8. 8. Pravin’s budget highlight Budget 2013/14 (in R bn)1,2001,000 800 600 1149.4 985.7 400 200 0 Revenue Spending Daberistic
  9. 9. Pravin’s budget highlight8. Personal tax threshold R67,111 (R63,556)9. Sin taxes go up between 5% and 10%10.Fuel levy up 23c11.Levy on plastic shopping bags up to 6c12.Social grants up by 4% ~ 5%13.Medical aid credit R242 first two/R162 additional14.Consider making transfer to preservation fund compulsory when changing employer Daberistic
  10. 10. Pravin’s budget highlight15.Youth employment incentive to be tabled16.Upgrade infrastructure: R827bn17.Moderate employment growth18.Spending cuts of R10.4bn next 3 years19.Tax relief for small businesses20.Special economic zone – 15% corporate tax21.Review of mining tax22.Encourage investments and trades with Africa Daberistic
  11. 11. Pravin’s budget highlight15.Youth employment incentive to be tabled16.Upgrade infrastructure: R827bn17.Moderate employment growth18.Spending cuts of R10.4bn next 3 years19.Tax relief for small businesses20.Special economic zone – 15% corporate tax21.Review of mining tax22.Encourage investments and trades with Africa Daberistic
  12. 12. Individual Taxes Daberistic
  13. 13. Individual taxes – younger than 65 Daberistic
  14. 14. Personal income tax rate Taxable Income (R) Rates of taxR0 – R165,600 18%R165,601 – R258,750 25%R258,751 – R358,110 30%R358,111 – R500,940 35%R500,941 – R638,600 38%R638,601 + 40% Daberistic
  15. 15. Individual taxesRebatesPrimary (Under age 65) R12,080Secondary (65 – 75) R6,750Tertiary (age 75 and over) R2,250 Tax threshold Below age 65 R67,111 Age 65 – 75 R104,611 Age 75 and over R117,111 Daberistic
  16. 16. Individual taxes• Interest and dividend income – Annual exemption on interest R23,800 (age <65) and R34,500 (age 65+)• Medical aid tax credit – R242 (R230) for first 2 – R162 (R154) for each additional Daberistic
  17. 17. Individual taxes• Retirement fund lump sum withdrawal benefits – no change Taxable income (R) Rate of Tax 0 – 22,500 0% 22,501 – 600,000 18% 600,001 – 900,000 27% 900,001 + 36% Daberistic
  18. 18. Individual taxes• Retirement fund lump sum benefits or severance benefits – no change Taxable income (R) Rate of Tax 0 – 315,000 0% 315,001 – 630,000 18% 630,001 – 945,000 27% 945,001 + 36% Daberistic
  19. 19. Retirement fund reforms• From March 2014: – Employer contributions as taxable fringe benefits in the hands of the employee – Individuals allowed 27.5% of the higher of taxable income or employment income as deduction, for contributions to pension, provident and retirement annuity funds – Maximum annual deduction R350,000 – Tax-preferred savings and investment accounts in 2015 Daberistic
  20. 20. Retirement fund reforms• From March 2014: – Retirement funds must identify appropriate preservation funds for exiting members – Must guide members of converting savings into a regular income after retirement – More competition promoted to sell living annuities – Tax treatment of pension, provident and retirement annuity funds simplified and harmonised Daberistic
  21. 21. Retirement fund reforms• From March 2014: – Vested benefits protected Daberistic
  22. 22. Small business tax relief• Turnover threshold R20m (R14m) Taxable income (R) Rate of tax 0 – 67,111 0% 67,112 – 365,000 7% 365,000 – 550,000 21% 550,000 + 28% Daberistic
  23. 23. Where the budget money comes from Source 7% 5% Personal Income Tax 34% Excise Duties Corporate Tax 27% Customs VAT Fuel 3% Other 5% 19% Daberistic
  24. 24. What does Uncle Pravin want you to do• Pay your dues on time• Preserve your retirement savings• Save money• Start businesses to create jobs and grow the economy Daberistic
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