Tax cuts affect on me?

supersunbird

supersunbird

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So Trevor did something to all the income taxes yesterday. But I don't know what this means.

I fall in the bracket that got 23% off or something, but how does this affect me? Am I going to be taxed less on my income from the begining of March? Am I gonna get a bigger rebate when e-filing for last year? How does this work in the real world...
 
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Yea agreed - how does this all work?

Are we going to be more flush ?
 
supersunbird said:
So Trevor did something to all the income taxes yesterday. But I don't know what this means.

I fall in the bracket that got 23% off or something, but how does this affect me? Am I going to be taxed less on my income from the begining of March? Am I gonna get a bigger rebate when e-filing for last year? How does this work in the real world...
Click to expand...

That.

How much effect you'll see depends on what tax bracket you fall into. (And it may take a month or two for your salary department to make the changes, in which case they should backdate them to March)
 
as far as i understand it, if your HR dept is jacked and running decent payroll software then you should start seeing a reduction in you tax amount from either end feb or march (not sure which), and when you do your return at the end of this year you should get more back for your medical aid contributions (when ever they do actually decide to refund you!)
 
You will be taxed less, but consumer prices have risen considerably, so nothing really changes (positively) for the taxpayer.
 
hoegh said:
as far as i understand it, if your HR dept is jacked and running decent payroll software then you should start seeing a reduction in you tax amount from either end feb or march (not sure which), and when you do your return at the end of this year you should get more back for your medical aid contributions (when ever they do actually decide to refund you!)
Click to expand...

End of March, since the changes only kick in at the end of Feb.

Med aid - that depends on how you do it. If your company deducts the contributions from your salary and pays it over for you, they've probably already taken it into account for tax. If you pay it yourself, you claim it back at the end of the year.
 
Someone told me the other day that Manuel is an engineer by training and Pravin Gordhan is a chemist. Interesting!
 
Assume you earn R180 000 and are below the age of 65. Before the new individual tax rates, you should have paid R21 960 (18% tax up to R122 000) and a extra R14 500 (25% tax up to R180 000, R180 000-R122 000=R58 000)

Total = R21 960 + R14 500 = R36 460 minus a tax rebate of R8 280.

TOTAL TAX FOR YEAR END FEBRUARY 2009 = R28 180.

Assume you earn R180 000 and are below the age of 65 for the next year as well. You are going to pay R23 760 (18% tax up to R132 000) and a extra R12 000 (25% tax up to R210 000, R180 000-R132 000=R48 000)

Total = R23 760 + R12 000 = R35 760 minus a tax rebate of R9 756.

TOTAL TAX FOR YEAR END FEBRUARY 2010 = R26 004.

A saving of R2 176, a saving of around 7%!

Think the 23% is the amount of tax payers benefiting.
 
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