How are we as individuals going to experience the relief announced in the budget speech which made a provision bringing a tax relief of R9.25 billion to individuals in the 2015 year of assessment. as well as an estimated 40% of the relief will go to South Africans whom receives less than R250 000 a year?
The tax free thresholds have been raised from R67 111 to R70 700 and all the brackets have been adjusted upwards by about 5.3%. In this way income earners can earn more before paying tax or before moving to another tax bracket.
The lower income earners, those falling below R250 000 benefit the most from the increased brackets because the tax savings are much greater than for those earning more than R750 000.
Have a look at the 2015 Budget to get a further understanding.
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