PRETORIA 10 DECEMBER 2008 – Earlier this year Parliament approved an important change to the second provisional tax payments process and the imposition of additional tax on underestimates relating to these payments.

HIGHLIGHTS

• Personal income tax relief for individuals amounting to R7.7 billion
• A reduction in the headline corporate tax rate by one percentage point from 29 to 28 per cent
• The second phase of reforms to the secondary tax on companies (STC), culminating in the introduction of a final withholding dividend tax at shareholder level in 2009
• A simplified tax package for very small businesses with an annual turnover up to R1 million
• An increase in the compulsory VAT registration threshold from an annual turnover of R300 000 to R1 million
• Incentives to encourage venture capital equity investments in small and medium sized businesses
• R5 billion in tax subsidies over the next three years to support the emerging industrial policy
• A review of learnership allowances to encourage apprenticeships
• Measures to encourage private land owners to protect biodiversity
• The introduction of an electricity levy of 2 cents per kilowatt hour.