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Time Value of Money – Historical Tax Rates

It has often been said that inflation is the destroyer of wealth. To put this statement into a tax perspective, it is interesting to have a look back at historical rates of tax and related interest rates. It is, of course, true that earnings have also increased over the years, but it is nevertheless interesting to see from where we have come and even more interestingly, where the 2020 budget presentation, due in February 2020, will lead us.

Rate of tax for natural persons:

1996:

Taxable income (R)
Rate of tax (R)

1 – 5 000
17% of each R1

5 001 – 10 000
850 + 18% of the amount above 5 000

10 001 – 15 000
1 750 + 19% of the amount above 10 000

15 001 – 20 000
2 700 + 20% of the amount above 15 000

20 001 – 30 000
3 700 + 21 % of the amount above 20 000

30 001 – 40 000
5 8700 + 31% of the amount above 30 000

40 001 – 50 000
8 900 + 42% of the amount above 40 000

50 001 – 70 000
13 100 + 43% of the amount above 50 000

70 001 – 80 000
21 700 + 44% of the amount above 70 000

80 001 and above
26 100 + 45% of the amount above 80 000

 

2002:

Taxable income (R)
Rate of tax (R)

1 – 38 000
18% of each R1

38 001 – 55 000
6 840 + 26% of the amount above 38 000

55 001 – 80 000
11 260 + 32% of the amount above 55 000

80 001 – 100 000
19 260 + 37% of the amount above 80 000

215 001 and above
72 660 + 42% of the amount above 215 000

2010:

Taxable income (R)
Rate of tax (R)

1 – 140 000
18% of each R1

140 001 – 221 000
25 200 + 25% of the amount above 140 000

221 001 – 305 000
45 450 + 30% of the amount above 221 000

305 001 – 431 000
70 650 + 35% of the amount above 305 000

431 001 – 552 000
114 750 + 38% of the amount above 431 000

552 001 and above
160 730 + 40% of the amount above 552 000

 

Rate of tax for companies

Year of assessment
Rate of tax
Surcharge
Transitional levy (1)
UPT (2)

1981
40%
5%

33.3%

1992
48%


1995
35%

5%

2000
30%


2009
28%

 

  • To finance transitional costs incurred during the 1993 and 1994 transitional process to democracy, a once-off transitional levy was charged during the 1995 year of assessment. This levy was calculated as a percentage of taxable income in excess of R50 000 before set-off of any balance of assessed loss was brought forward.
  • Undistributed profits: UPT was payable by companies at the rate of 33⅓% on the amount by which the distributable profit of a company exceeded the dividends distributed during the specified period relating to the year of assessment. In light of the exemption of income in the form of dividends in the hands of natural persons and CCs, this tax was no longer warranted as of 1 April 1990.

 

Excise duty

2006

Products 
Duty

Malt beer
3364,98 c/l absolute alcohol (aa)

Sorghum beer
7,82c/kg

Spirits (average)
5042,01c/li aa

Sparkling wine
387,99c/li

Fortified wine
263,14c/li

Unfortified wine
140,52c/li

Traditional African Beer Powder
34,7c/kg

Other fermented beverages e.g. ciders
168,24c/li

 

2012

Products 
Duty

Malt beer
R53.97/l absolute alcohol (aa)

Traditional beer
7.82 c/l

Spirits (average)
R93.03/l aa

Sparkling wine
R6.97/l

Fortified wine
R4.33/l

Unfortified wine
R2.32/l

Traditional beer powder
34.7 c/kg

Other fermented beverages, e.g. ciders
R2.71/l

 

2017

Products 
Duty

Malt beer
R86.39/li aa

Traditional beer
7.82c/li

Spirits (average)
R175.19/li aa

Sparkling wine
R11.46/li

Fortified wine
R6.17/li

Unfortified wine
R3.61/li

Traditional beer powder
34.7 c/kg

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