Subsequent to our post on 22 January 2016 regarding upcoming changes to tax laws, press and media statements have been released regarding proposed delays to some of these changes.
At a Symposium on 19 February 2016, industry experts have stressed that the delays are proposed, and not yet confirmed. However, the following will more than likely happen:
- Tax deductions will increase to 27.5% (capped at R350,000 per year)
- Annuitisation threshold will increase to R247,500
- Implementation of Provident Fund Annuitisation at retirement will be delayed for 2 years
If the above becomes definite, employers and payroll providers will need to go ahead with payroll changes.
Please refer to the attached Media Statement issued by the Ministry of Finance in this regard.