The following new tax rates, tax rebates and tax thresholds proposed by the Minister of Finance in his Budget speech on 26 February, came into effect on 1 March 2014.

Statutory rates applicable to individuals

Taxable Income (R)	Rates of Tax (R)
0 - 174 550	18% of each R1
174 551 - 272 700	31 419 + 25% of the amount above 174 550
272 701 - 377 450	55 957 + 30% of the amount above 272 700
377 451 - 528 000	87 382 + 35% of the amount above 377 450
528 001 - 673 100	140 074 + 38% of the amount above 528 000
673 101 and above	195 212 + 40% of the amount above 673 100

Tax rebates applicable to individuals
•  Primary rebate R12 726
•  Secondary rebate (for persons 65 years and older) R7 110
•  Tertiary rebate (for person 75 years and older) R2 367

Tax threshold applicable to individuals
•  Persons under 65 years R 70 700
•  Persons 65 - 74 years old R110 200
•  Persons 75 years and older R123 350

Cost Scale Table, effective from 1 March 2014

Determined Value of the Vehicle	Fixed Cost (R pa)	Fuel Cost (c/km)	Maintenance Cost (c/km)
0 to 80 000	25 946	92,3	27,6
80 001 to 160 000	46 203	103,1	34,6
160 001 to 240 000	66 530	112,0	38,1
240 001 to 320 000	84 351	120,5	41,6
320 001 to 400 000	102 233	128,9	48,8
400 001 to 480 000	120 997	147,9	57,3
480 001 to 560 000	139 760	152,9	71,3
560 000 and above	139 760	152,9	71,3

Travel reimbursements
The alternative rate per kilometre has been increased from R3.24 per km to R3.30 per km. This rate is applicable at the option of the recipient where the distance travelled for business purposes does not exceed 8 000 kilometres per annum and no other form of compensation is received.

Local travel
The deemed daily amount for travel in the Republic (e.g. subsistence allowance) is:
•  R335 per day for meals and incidental costs
•  R103 for each day for incidental costs only

Travel outside the Republic
The deemed daily amount for travel outside the Republic to defray the cost of meals and incidental costs, is an amount per day determined in accordance with a table for the country in which that accommodation is located. (That table is available on request from [email protected].)

The medical scheme tax credit that will be effective from 1 March 2014 is:
•  R257 in respect of the taxpayer
•  R257 for the first dependant
•  R172 for each additional dependant

Over 65 years and taxpayers with a disability (taxpayer, spouse or child):

•	33.3% of the amount of contributions to a medical scheme as exceeds three times the medical scheme fees tax credit; and
•	33.3% of qualifying medical expenses incurred.

Under 65 years:

•	25% of the aggregate of the amount of fees paid to a medical scheme as exceeds four times the medical scheme fees tax credit and qualifying medical expenses as exceeds 7.5% of taxable income (before medical deduction and excluding retirement lump sum benefits).

Note: The rules no longer take age into account and are now based purely on whether the person in working or legally retired, i.e.:
•  If the Employee is working: Employer Contribution is Taxable and Tax Credits Apply
•  If the Employee is Legally Retired: Employer Contribution is Non-Taxable and No Tax Credits Apply

Compensation Fund Notice

A Government Gazette notice was published on 26 February which deals with the following:
•  Increase of maximum amount of earnings on which the assessment of an employer shall be calculated;
•  Increase in monthly pensions;
•  Manner of calculating compensation; and
•  Increase in monthly pensions.

The prescribed amount in terms of section 83(8) of the Compensation for Occupational Injuries and Diseases Act, 1983 has increased to R332 479 per annum with effect from 1 April 2014. The previous amount was R312 480 (effective from 1 April 2013).

The Department of Labour has announced new minimum wages for vulnerable workers in the farm sector which will come into effect from 1 March 2014. Sectoral determinations cover the protection of workers in the vulnerable sectors/areas of work. The determination sets minimum working hours, minimum wages, number of leave days and termination rules.

In terms of the Sectoral Determination for farm workers, the minimum wages will be adjusted upwards to:
•  An hourly rate of R12.41 (previously R11.66)
•  A weekly rate of R558.60 (previously R525)
•  A monthly minimum wage of R2 420.41 (previously R2 275)

The new determination will be effective until the end of February 2015.

It has been brought to our attention that the Mauritius Revenue Authority published new Income Exemption Thresholds in respect of the income year ending 31 December 2014. The documentation which we have received contained limited tax rules and amendments, therefore, if there are any discrepancies we would appreciate it if you would provide us with the official documentation and the changes not catered for in this document.

The payrolls must be defined as normal Monthly (12 periods) or weekly payrolls (52 periods). The tax routines have been enhanced to manage the bonus payment as a separate run when advised. This can be done as a 'bonus' type of run, or when the bonus is paid out as part of the normal payroll run. The bonus payment effectively becomes the 13th pay period.

A single flat rate of 15% is applicable for the calculation of tax for individuals regardless of whether an EDF has been submitted. Fees payable to directors should be taxed at a flat rate of 15% even though the amount does not exceed Rs. 240 500 per annum. A non-citizen who is resident in Mauritius for income tax purposes has to furnish an EDF to his employer in Mauritius unless his emoluments do not exceed Rs. 240 500 per annum. An exempt employee is an employee whose monthly emoluments do not exceed Rs. 18 500 (Rs. 240 500 per annum).

Note: A tax status zero must be advised for exempt employees.

Following the 2013 Budget Presentation by the Minister of Finance in Parliament on 24 November 2013, the following tax proposal were made effective from 1 January 2014. The amendments are subject to the Bill being passed in Parliament and the implementation of the new rates provided with this notice is therefore an Employer decision. The documentation which we have received contained limited tax rules and amendments. If there are any discrepancies, it would be appreciated if you could provide us with the official documentation and the changes not catered for in this document.

While the tax free portion remains unchanged at US$3 000 the maximum limit has been increased to US$ 240 000 per annum and the highest percentage has been set at 50% with effect from 1 January 2014.

The following rulings remain unchanged:
•  The tax free bonus amount has increased from US$ 500 to US$ 700
•  3% Aids Levy
•  50% Medical Aid Rebate
•  Maximum deduction allowed for 55 years and older is US$ 900 per annum
•  Maximum deduction allowed for Blind persons is US$ 900 per annum
•  Maximum deduction allowed for physically / mentally disabled persons is US$ 900 per annum
•  The Marginal rate is 35%
•  Maximum Pension / Retirement Annuity deduction allowed is US$ 5 400 per annum

It has been brought to our attention that the individual income tax rates have been amended for the 2014 year of assessment as announced by the Minister of Finance in the Annual Budget Statement. The new rates were published in a Public Gazette dated 23rd September 2013 which approves the amendments. The documentation which we have received contains limited tax rules and amendments, therefore, if there are any discrepancies, we would appreciate it if you could provide us with the official documentation and the changes not catered for in this document.

The tax-free income band has been increased to MZN 20 249.99 per month and highest income band to MZN 144 750 per month.

Tax Year:
The financial tax year in Mozambique is January to December.

It has been brought to our attention that the individual income tax rates have been amended for the 2014 year of assessment as announced by the Minister of Finance in the Budget Statement on 11 October 2013. If you process a Zambian payroll with HRTorQue Outsourcing your payroll will be updated for the January 2014 payroll run. The amendments are subject to the Bill being passed in Parliament and the implementation of the new rates provided with this notice is therefore an Employer decision.

The tax-free income band has been increased from K 26 400 to K 36 000 per annum, while the highest income band of K70 800 and the rates of tax remained unchanged.

The following ruling remains unchanged:
•  Pension Contributions

The taxation of pension contributions are as follows:
•  The lesser of 15% or K 3 060 per annum is allowed to be deductible from the employee's annual income
    Pension Investment Income
•  The investment income of Pension funds will be taxed at a reduced rate of 15%

Physical Disabled:
•  Maximum deduction allowed for Blind persons is K 3 000 per annum

If you process your payroll with HRTorQue Outsourcing, all these statutory changes have
already been made on your behalf.

Head Office (Durban)   Phone: 031 564 1155 Fax: 031 564 1228   Email: [email protected] Website: www.hrtorque.co.za   Address: 163 Umhlanga Rocks Drive Durban North, KwaZulu-Natal     Sales Melany Bydawell: 031 582 7425 / 083 441 5618 [email protected] Payroll & HR Administration Karen van den Bergh: 031 582 7413 / 082 891 1722 [email protected] Human Resources / Employee Relations Melany Bydawell: 031 582 7425 / 083 441 5618 [email protected]

Employment Equity & Skills Development Melany Bydawell: 031 582 7425 [email protected] Nicky Hardwick: 031 582 7418 [email protected]   Tax Dave Beattie: 031 582 7410 [email protected] Executive Coach and Team Interventions Melany Bydawell: 031 582 7425 [email protected]   Payroll Third Party Administrator Kacey Chetty: 031 582 7409 [email protected]   Accounts Cheryl Naidoo: 031 582 7408 [email protected] Dispatch Karl van der Merwe: 031 582 7407 [email protected]