Taxand South Africa provides a summary of the 2017 South African budget speech.


The South African Minister of Finance indicated that South Africa needs to raise an additional R28-billion in tax revenues. The increase in revenue will be funded mainly by the following measures:


  • A new maximum marginal income tax rate of 45% for those with taxable income over R1.5-million per annum (an increase from the current maximum rate of 41%)
  • An increase in the dividend withholding tax rate from 15% to 20% (effective 22 February 2017). The exemption and rates for foreign dividends will also be adjusted in line with the new rate, effective for years of assessment commencing on or after 1 March 2017
  • An increase of 30 cents per litre in the general fuel levy and nine cents per litre in the Road Accident Fund levy
  • Increases in excise duties for alcohol and tobacco of between 6% and 10%
  • No change to the value-added tax (VAT) rate of 14%
  • The transfer duty-free threshold for residential properties will be increased from the current R750 000 to R900 000
  • No increase in the corporate tax rate of 28% (which is considered to be higher than the Organisation for Economic Co-operation and Development average of 25%)
  • The income tax rate applicable to income retained by trusts will increase from 41% to 45%
  • Withholding tax on immovable property sales by non-residents will be increased from 5% to 7.5% for individuals, 7.5% to 10% for companies and 10% to 15% for trusts

Discover more: 2017 budget speech summary

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Taxand's Take

The South African Minister of Finance delivered his 2017 budget speech on 22 February 2017. He indicated that South Africa needs to raise an additional R28-billion in tax revenues and reduce spending by a total of R26-billion over the next two years.

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Article tags

International Tax | South Africa

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