If Finance Minister Tito Mboweni announces significant changes to individual taxes during his Budget speech on February 26 it could have wide-ranging implications for South Africa’s heavily burdened tax base. There are numerous actions which the Minister could take to bolster the state’s coffers, including a possible VAT increase, an increase in Personal Income Tax as well as Capital Gains Tax. Of course, tax increases, while driven by fiscal policy, have weighty economic implications, which I am sure the Minister and his team have considered extensively.
For investors, any increases or changes could have an impact on estate and financial planning moving forward. Here is how any one of these increases could impact you.
Value Added Tax:
In 2018 the tax charged on goods and services was increased from 14% to 15%. It’s uncertain whether another increase would be implemented but if it is it would mean an almost immediate increase in the cost of living which will impact any household’s financial plan. The point of departure for any financial plan is to determine the living standard of a person and his or her family. The living standard of a household drives a well-prepared budget for the family. Since VAT is a consumption tax, it will have a direct impact on the budgeting discipline of a household. One should re-visit your priorities, re-arrange, and start making tough decisions between what is necessary to have, and what is nice to have.
Personal Income Tax
I am sure the Minister will have looked at ways to adjust personal income brackets and even weighed up an increase on personal tax across the board. Currently the continuum of income tax ranges from 18% at the lower end to 45% and R532 041 of taxable income at the upper end. It’s difficult to see how government could justify a wholesale income tax increase but it is not impossible to see a rate hike to 46%, or perhaps a once off levy for persons in the top tax bracket. The marginal rate was much higher in earlier years. What is more a given, is that the necessary inflationary adjustments will not be made in the income tax brackets. It may also be far too optimistic to hope for an increase in the medical credits, and to a lesser extent age credits. To neutralise the effect of personal tax increases one must maximise on tax deductions, for instance contributions to retirement funds. These contributions will drastically reduce the effective rate of tax payable. Currently the taxpayer enjoys generous tax relief for contributions to a retirement fund, and since retirement is a definite goal in our journey through life, the full amount invested in a tax-free growth portfolio, will be of personal benefit one day. It is unlikely that the maximum tax-deductible amount will be increased, given the favourable tax relief we currently enjoy.
Capital Gains Tax
This is probably the one area where there is room for significant change. Government is under pressure from certain quarters to increase tax on the wealthy and taxing the gains made on the sale of assets could be where they make up some ground. It has been four years since we saw a significant increase in the capital gains inclusion rate. Initially the inclusion rate was 25%, and gradually increased to 40%. It is ironic that the original rate in 2001 was to allow for relief in inflationary growth of capital assets. Increasing the current 40% inclusion rate will pay lip service to the original intent and will be a serious factor to consider. Should the effective rate for capital gains be increased the popularity of tax-free investments, where no capital gains are paid upon maturity, will become much more attractive for the long term. The role of the financial planner and a suitable long-term investment strategy, aligned with a future lifestyle goal, will become important for the investor.
The idea of a Wealth Tax has been bandied since 2018 following the conclusion of the Davis Tax Committee. To date very few recommendations were incorporated, save for the curbing of the use of trust for estate duty saving purposes and an increase in the estate duty rate. However, the collections from estate duty was meagre. It will be interesting to see if some of the other recommendations will be considered, for example the estate duty relief for spousal bequest. Spousal bequests currently escape estate duty. Whatever the Minister announces on Wednesday South Africans will be impacted in some shape or form. There are immense pressures on his Department to cut costs and demonstrate responsible fiscal spending. This, however, must be weighed against the growing need for income to aid government in meeting its infrastructure, health, education and social welfare responsibilities. Investors, in fact all South Africans, would do well to tune in to the Minister’s speech to gauge the likely impact on themselves and their finances.
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Muller, you can start by giving all of the employees availability form. It's the main resource. You will see which time any of your employees prefer and make schedule according this information. You don't need any fancy technologies for that. Just some paper and employee availability template. It's easy to find. For example, you can find it at https://tracktime24.com - they have a lot of good stuff there. For example, I have found a schedule template there when I needed one.
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That reference is long yes, so you need to go back to the ehome affairs site and look under the Payment tab, there is a 10 digit "Transaction Payment Number" copy that and paste then you sorted.
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Please confirm if this matter was resolved? If not, kindly confirm if this was a cash deposit or Internet transfer from which account to whose account for further investigation?
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Good day Can someone explain to me why are the credit card charges so high, it feels like I'm paying the bank charges and not the debt.. @StandardBank wrote: My personal details have changed. What do I need to do? Please bring along a copy of your marriage certificate, if your surname has changed, and a copy of your identity document with your correct names. If you have changed your address or phone number, please inform us by visiting your nearest branch. How do I change my debit order? Ask for a debit order form at any branch, complete it and return it to us by fax or post, or ask the branch to send it to us. How can I get a statement immediately? You can get a copy from any branch for a fee. If you are an Internet banking user you can check your statement at any time free of charge. What type of transactions can I dispute? There are two types of transactions that may be disputed: transactions that have either an S# or [email protected] before the merchant's name, which both mean swiped transactions. In this case the card had to be present at the merchant and therefore is most likely to be your transaction. However, the amounts that may appear on your statement could be different. What is the procedure to follow when disputing a transaction? The procedure to follow is to complete a dispute form and attach a copy of the signed voucher to have the amount shown on your account rectified. If there is a swiped transaction that you insist is not yours, a dispute form has to be completed and sent to Card Division for investigation. The amount will be suspended from your account balance temporarily and will be reported as a disputed amount. Card Division will then request the merchant to supply a copy of the signed voucher, within the required time. If the time lapses and the merchant fails to supply us with a copy of the voucher the transaction will be charged back to the merchant and you will be credited. What happens then if the merchant does supply the necessary document(s)? If the merchant supplies a valid copy of the voucher and the signature is valid the amount will then be returned to your account balance along with the interest for the period the transaction was suspended. A further debit will appear on your account for retrieval of the voucher (R50 for local vouchers and R205 for international vouchers) if you are proven to be at fault. This fee will not appear if you are correct. Unauthorised disputed transactions Transactions with either an M# or [email protected] before the merchant's name represent manual transactions. In this case the card did not have to be present, for example, mail order, Internet merchants or even if the swipe system was off line. Remember that if you have made a mail order arrangement the merchant may produce the agreement, which you may have entered into rather than a signed voucher. Once you have identified that there is a transaction you did not authorise you need to complete a dispute form and send it to Card Division for investigation. The process is the same as that for a swiped transaction. I paid my card account but the payment is not shown on my statement. What should I do? Send us your proof of payment so that we can trace it and credit your account. Any interest charges will be reversed once the payment has been traced. My statement shows a payment that I do not remember making. How can I find out who made it? Call us and we will try to get a copy of the deposit slip or receipt. If the amount was incorrectly credited to your account, we will reverse it. How do I pay one of my budget purchases early? Pay the required amount into your card account and then phone us to let us know which budget purchase you are paying. Alternatively, if you have enough credit on your account, ask us to switch the outstanding budget amount to an ordinary payment. The new balances will reflect on your account the following day. Can I change the repayment period on a budget purchase? Yes, if the transaction date is less than 30 days before you lodge your request and no instalment has been taken off your budget facility. What is lost card protection and how can I get it? Lost card protection protects you against any loss caused by fraudulent use of your card if it is lost or stolen. It does not cover transactions in which your PIN was used. Lost card protection is free of charge and you qualify as soon as your card is issued. What is credit protection? It's insurance that settles your credit-card balance in the event of death, disability or retrenchment. You can ask for credit protection by phone, fax or email. How can I get a copy of a tax certificate? We issue tax certificates automatically, if more than R250 interest is credited to your account. You can ask for a duplicate by phone, fax or e-mail.
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@ilanampiti wrote: Congratulations to our winners! Because you didn’t just like it, you swiped your Standard Bank Credit Card and got rewarded a lifetime chance to watch the Boks play in Japan. In addition, you will get to explore the beauty of Japan and tour ancient landmarks and beautiful gardens. Here are our lucky winners! Hope you’re all packed and #GoodToGo. Stephen Thomas Ryan Mains-Sheard Katleho Mallela Donald David Wheeler Christiaan Jacobus Coetzee Warren Michael Ebben Sinenhlanhla Theodosia Mngomezulu Mudimeni Isaiah Ramabulana Bradley Ryan Haynes Go out and enjoy all that Japan has to offer and then grace the stadium for a VIP match day experience courtesy of Standard Bank and MasterCard. See you there! Post lots of pictures.
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