22 Feb

No shocks for the property industry in the 2017/2018 budget.

Fortunately for the property industry there were no increases in transfer duty imposed in the budget. On the contrary there was a reduction in transfer duty. In the previous year the threshold for imposition of transfer duty started at  R750,000. It will now only start at R900,000. That will help purchasers at the lower end of the market.

Of more general interest, significant changes were made to various taxes. The maximum rate of personal Income Tax rose from 41% to 45%. This applies to all revenue over R 1.5 million per annum. Capital Gains Tax for individuals increased from an effective 16.4% of any gain to 18%. Capital Gains for trusts increased from 32.8% to 36%. Dividends Tax jumped from 15% to 20%. There were no changes in tax rates for companies.

The bottom line is that wealthy individuals and trusts are going to pay more Tax!

Milton Koumbatis