The following new tax rates, rebates and thresholds proposed by the Minister of Finance in his Budget Speech on 25 February 2015 will come into effect on 1 March 2015.
Statutory rates applicable to individuals
| Taxable Income(R) | Rates of Tax (R) |
| 0 – 181 900 | 18% of each R1 |
| 181 901 – 284 100 | 32 742 + 26% of the amount above R181 900 |
| 284 101 – 393 200 | 59 314 + 31% of the amount above R284 100 |
| 393 201 – 550 100 | 93 135 + 36% of the amount above R393 200 |
| 550 101 – 701 300 | 149 619 + 39% of the amount above R550 100 |
| 701 301 and above | 208 587 + 41% of the amount above R701 300 |
Tax rebates applicable to individuals
Primary rebate: R13 257
Secondary rebate (for person 65 years and older): R7 407
Tertiary rebate (for person 75 years and older): R2 466
Tax threshold applicable to individuals
Persons under 65 years: R73 650
Persons 65 – 74 years old: R114 800
Persons 75 years and older: R128 500
Medical Scheme Contribution Tax Credit
The medical scheme tax credit that will be effective from 1 March 2015 is:
R270 in respect of the taxpayer
R270 for the first dependant
R181 for each additional dependant
Residential Accommodation Fringe Benefit
The value of “B” in the formula prescribed in paragraph 9 of the Seventh Schedule has increased from R70 700 to 73 650 with effect from 1 March 2015.
Interest Rates
The official rate of interest applicable to interest-free or low-interest loan fringe benefits is 6.75%. No change to this rate has been announced.
The prescribed rate of interest applicable to the late or underpayment of tax is 9.25%. No change to this rate has been announced.
Unemployment Insurance Fund Contributions
The following statement was made in the Budget Speech by the Minister of Finance:
The second special revenue proposal is a one-year relief measure in respect of Unemployment Insurance Fund contributions. Unlike the Road Accident Fund, the UIF has an accumulated surplus of over R90billion. Improved benefits are now being introduced, but it is nonetheless possible to provide a temporary relief to both employers and employees. The proposal is that the contribution threshold should be reduced to R1 000 a month for the 2015/16 year. This means that employers and employees will each pay R10 a month during the year ahead, putting R15 billion back into the pockets of workers and businesses.
Although a decrease in the UIF threshold was announced in the Budget Speech, employers should be aware that it will only be effective from a date announced by the Minister of Finance in a Government Gazette notice which are still due to be published.
Rate per Kilometre
Cost Scale Table effective from 1 March 2015:
| Determined Value of the Vehicle | Fixed Cost (R pa) |
Fuel Cost (c/km) |
Maintenance Cost (c/km) |
| 0 to 80 000 | 26 105 | 78.7 | 29.3 |
| 80 001 to 160 000 | 46 505 | 87.9 | 36.7 |
| 160 001 to 240 000 | 66 976 | 95.5 | 40.4 |
| 240 001 to 320 000 | 84 945 | 102.7 | 44.1 |
| 320 001 to 400 000 | 102 974 | 109.9 | 51.8 |
| 400 001 to 480 000 | 140 797 | 130.4 | 75.6 |
| 480 001 to 560 000 | 121 886 | 126.1 | 60.8 |
| 560 001 and above | 140 797 | 130.4 | 75.6 |
Travel Reimbursements
The alternative rate per kilometre has been reduced from R3.30 per km to R3.18 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.
Subsistence Allowanced and Advances
Local travel
The deemed daily amount for travel in the Republic (e.g. subsistence allowance) is:
R353 per day for meals and incidental costs
R109 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 the following table for the country in which that accommodation is located.