Reminder: Taxation Laws Amendment Bills (Published 2 June 2011)
The changes from a payroll perspective are as follows:
- All the changes to statutory tables, tax thresholds, rebates, etc. as proposed in the budget have been included;
- The increase in the exemption amount in the retirement lump sum benefit tax table has taken effect (i.e. from R 300 000 to R 315 000);
- The abatement in the residential accommodation fringe benefit formula has been changed to R 59 750. This is now in line with the under 65 tax threshold;
- The medical caps of R 720 and R 440 have been included;
- The maximum cost ceiling of an employer owned motor vehicle is now R 480 000.
These have been implemented in the standard payroll rules already, so there is nothing needed to be done by you!