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Budget 2016 “We are resilient. We are committed. We are resourceful.”

Budget 2016 “We are resilient. We are committed. We are resourceful.”

Minister Pravin Gordhan’s much anticipated Budget Speech for 2016 will be analysed and scrutinised for many days to come. Over the next few weeks, our team will highlight and unpack some of the effects to clients’ commercial and IP portfolios. Here are some of our initial thoughts in respect of tax proposals:

“The budget speech largely trained its focus the wealth taxes, with higher capital gains inclusion rates being imposed, together with an increase in the annual amount above which capital gains becomes taxable. The transfer duty rates in respect of immovable property have also been increased.

“Transfer Pricing: Government will act more aggressively against the evasion of tax, and additional measures will address revenue losses associated with transfer pricing – drawing on the work of the OECD and the G20 joint project on base erosion and profit shifting, and independent bodies such as the Tax Justice Network.

“Government is reintroducing an amnesty in respect of undisclosed assets abroad with the additional relief offered for an extended period of six months from October 2016.

“Marginal rates for personal income tax have not moved, however the thresholds for three levels have been adjusted.

Comment provided by Ashlin Perumall