In his 2017 budget speech, Pravin Gordhan announced the “supertax” rate of 45% on individuals’ taxable income in excess of R1,5m per annum. This tax rate also applies to all taxable income earned by a trust (except a special trust). Should we be concerned? He also announced that Dividends Withholding Tax is increased from 15% to 20%. Again, should we be concerned? It all depends upon how you have structured your affairs. Let’s take Income Tax on trusts first. The effect of the change is that CGT on trusts also increases from 32.8% to 36%. None of this should matter to…
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