Guiding consumers since 2009

Crucial aspects for high net worth individuals

By Staff Writer

The focus this year was on a fair, efficient, transparent, certain and uncomplicated budget. With not much manoeuvrability the “super-rich” unfortunately received special attention.

In line with expectations, effective capital gains tax rates will be increased and effective from 1 March 2012 as follows:

Individuals & Special Trusts       13.33% max (up from 10%)
Trusts                                       26.66% (up from 20%)
Corporates                                18.66% (up from 14%)

Similarly Dividends Tax will be levied at 15% and not the expected 10%, effective 1 April 2012.

A high emphasis was also placed on tax compliance and especially by the wealthy, in particular through their trust vehicles. Non-compliant Tax Practitioners and Intermediaries will also come under scrutiny!

From October this year, ad valorem excise duties will apply to those ever-so-expensive toys of the wealthy. Small aeroplanes and helicopters (weighing less than 5 ton in effect for private use) will attract 7% ad valorem excise duty. Boats exceeding 10 meters in length will likewise be subject to a 10% ad valorem excise duty.

National health insurance will be phased in over the next 14 years and as expected, funding will come from the following possible sources:

Increase of the VAT rate,
A payroll tax on employees,
A surcharge on the taxable income of individuals, or
A combination of the above.

The funding options will be implemented as from 2014/2015.

The 2012/13 may well be known as the “Robin Hood” of budgets!

Recent Articles

Featured A guide to saving after retirement

Everyone knows that saving for your retirement is good for many reasons, such as not having to depend on social grants or your family, and sustaining the quality of the life you’re leading.  However, many people think that once they retire there’s no need to continue saving. However, life doesn’t stop at retirement and you may still have decades of life to enjoy.

Try these ventures to earn a passive income

It’s sound financial sense to have more than one stream of income. By setting up a passive stream of income, you’ll earn more each month without having to dedicate too much extra time.

What can you do to become a millionaire?

Becoming a millionaire may seem like a pipedream. However, this doesn’t have to be the case. It may be more feasible to earn your first million than you think.

How to calculate interest on your loans

When you take out a loan, your credit provider will charge you interest on your repayments. This is essentially the monthly cost you pay to have immediate access to a lumpsum of money. But do you know how your interest is calculated?

Deals

Get 10 pieces of chicken for R75 at KFC

Price: R75
When: Tuesdays
Where: Nationwide

Debonairs Get 2 for Iklipa Special

Price: R99.90
When: Daily
Where: Nationwide

Indaba Hotel Christmas Lunch Special

Price: R595
When: Until 25 December 2020
Where: Johannesburg


Latest Guide

Guide to debt rehabilitation solutions