creating opportunities in tough times budget 2012

Creating opportunities in tough timesBudget 2012

www.pwc.co.za/budget

Agenda

• Tax collection review

• Individuals

• Corporates / Business

• National Treasury legislation drafting

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Who will pay?

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Who is paying?

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Individuals

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IndividualsAspects welcomed

Retirement contributions

Simplification & increase of deduction limits

Increase in CGT exemption thresholds

Tax-preferred savings & investments


IndividualsConcerns

Personal income tax burden

4.5% will pay 38%

Savings disincentives

• Scrapping the interest exemption

• Capped contributions

• Increased DT

• Increased CGT

Medical Credits

Double disadvantage for

middle / high income earners

Business

8Slide 8


BusinessAspects welcomed

Small business relief

Interest deductions for

share acquisitions

Review of property loan stock companies

Special economic zones

Foreign company tax rate

Taxation of financial instruments

Quasi-equity loans to foreign

subsidiaries


BusinessConcerns

Withholding Tax rates

(Revenue expectation)

Dividends Tax changes

(Rate & STC credits)

Uniformity of passive

income and gains

Carbon Tax

fait accompli?

National Treasury

11Slide 11


National Treasury – Legislation drafting

• Drafting resource-constraints persist

• Increasing incidence of anomalies and errors

• Policy debates not being addressed

• Period of consolidation required

Questions ...

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Creating opportunities in tough timesBudget 2012

www.pwc.co.za/budget

creating opportunities in tough times budget 2012

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