Its 28th Feb - Start Hiding your Money

Its the end of the financial year and everyone seems to be transferring money and paying off accounts!!!! Whats going on????? mailto:wizstormdiss@gmail.com

TREVOR You Beauty You

Trevor Manuals tax deal for individuals is fantastic.

Take this opportunity to put the tax you save into your home loan account You will be shocked what you save. If you send me your current bond amount, rate and tell me how much extra you can put in (From your tax savings) Ill show you what the impact is. Its quite frightening

Example You have a R 450,000.00 home loan over 20years at 12% = R 4954.89 per month

So if you now save R 200.00 per month on tax and add that to your monthly payment (Savings)

Your bond term will reduce from 20 years to 17,3 years

Your monthly payments increase to R 5154.89 per month

You save interest of R 501.20 per month

Best of all you save R 120,288.50 over the period of your bond.

ITS A NO BRAINER

You can save email me wizchris@gmail.com and I'll show you how much you will save

South African budget 2007/2008 - Trevor Manuel

IF YOU ARE LOOKING FOR THE 2008 BUDGET SPEECH PLEASE FOLLOW THIS LINK: Trevor Manuel Budget Speech 2008/2009

For those of you interested I managed to get hold of a "SUMMARY" of yesterday's South African budget speech for 2007 and 2008. Take a look:

South African Budget Review - Trevor Manuel – 21 February 2007

The Minister of Finance, Mr Trevor Manuel, delivered his budget speech for the 2008 tax year at 2pm today. The following is a summary of the more pertinent points:-

COMPANIES

Trevor stated that Companies Tax remains at 29%, however Secondary Tax on Companies is to be replaced by a Dividend Tax on Shareholders in two phases. Phase 1, commencing 1 October 2007, will consist of reducing the current STC rate from 12.5% to 10%. Phase 2, which will commence in 2008, will consist of a complete move to a Dividend Tax on Shareholders, although its administrative enforcement will still be by way of a withholding tax at company level.

Whilst the Income Tax Act allows for depreciation of buildings used in manufacturing, there are currently no benefits for commercial buildings. A wear and tear allowance of 5% pa on new buildings and upgrades is proposed.

SMALL BUSINESS CORPORATIONS

The tax rates applicable to small business corporations are as follows:-

2008 tax year
R0 – R43 000 nil
R43 001 – R300 000 10% of the amount over R43 000
R300 001 and over R25700 + 29% of the amount over R300 000


2007 tax year

R0 – R40 000 nil
R40 001 – R300 000 10% of the amount over R40 000
R300 001 and over R26000 + 29% of the amount over R300 000

INDIVIDUALS

The tax tables applicable to individuals have been revised (see below), however the maximum tax rate remains unchanged at 40%.

The primary tax rebate has been increased to R7 740 (2007 : R7 200), while the additional rebate applicable to persons over 65 has increased to R4 680.

These changes have resulted in the annual threshold below which no tax is payable, being increased to R43 000 (2007 : R40 000) for persons under 65 and R69 000 (2007 : R65 000) for persons over 65.

The monetary caps for tax-free medical scheme contributions has been increased from R500 to R530 for each of the first two beneficiaries and from R300 to R320 for each additional beneficiary.

Retirement Fund Tax will be abolished from 1 March 2007.

The interest exemption has been increased to R18 000 (2007 : R16 500) for persons under 65 and R26 000 (2007 : R24 500) for persons over 65. The foreign interest and dividends threshold has increased from R2500 to R3000pa.

The private/business split with regard to travel allowances has remained unchanged, with the first 18000km still being classified as private in the absence of a logbook.

TAX

CAPITAL GAINS TAX

With effect from 1 October 2007, the gains on the sale of any equities which were held for longer than 3 years will be classified as capital gains.

The annual capital gains exclusion for individuals has increased to R15 000 (previously R12 500)

The primary residence exclusion for individuals has remained unchanged at R1 500 000.

The capital gain exclusion on death has increased to R120 000 (previously R60 000)

DONATIONS TAX

Donations up to R100 000 per annum are free of donations tax (previously R50 000). Donations tax will be levied at 20% thereafter.

ESTATE DUTY

Trevor Manuel proposed that the first R3 500 000 (previously R2 500 000) of a persons estate is free of estate duty. Estate duty will be levied at 20% thereafter.

PERSONAL TAX TABLES

2007/2008

0 – 112 500 18% of each R1
112 501 – 180 000 R20 250 + 25% of the amount over R112 500
180 001 – 250 000 R37 125 + 30% of the amount over R180 000
250 001 – 350 000 R58 125 + 35% of the amount over R250 000
350 001 – 450 000 R93 125 + 38% of the amount over R350 000
450 001 and above R131 125 + 40% of the amount over R450 000

2006/2007

0 – 100 000 18% of each R1
100 001 – 160 000 R18 000 + 25% of the amount over R100 000
160 001 – 220 000 R33 000 + 30% of the amount over R160 000
220 001 – 300 000 R51 000 + 35% of the amount over R220 000
300 001 – 400 000 R79 000 + 38% of the amount over R300 000
400 001 and above R117 000 + 40% of the amount over R400 000

WHO IS TREVOR MANUEL?
Born in Kensington, Cape Town on the 31st January 1956, Trevor Andrew Manuel is currently South Africa's Minister of Finance. Currently running in his 11th year as Minister, he is one of South Africa's most well respected polititians.

EProp.co.za - Commercial Properties

I came across a website today called Eprop. They are specialists in online commercial property in South Africa dealing with Office, Retail and Industrial property sectors.

I'd heard of them before but never realised they were so big...
They apparently have more than 15 000 visitors to this site on a constant basis and are the biggest commercial property marketplace in South Africa.

If anybody has more information regarding this company, possibly who they're owned by and how long they've been going for let me know.

Old Mutual Bank, Standard Bank, ABSA, Nedbank, First National Bank

What does everybody think about the home loans services from the banks?
1. GOOD
2. SO SO
3. NEEDS A LOT OF HELP

Gives us your experiences that you've had with home loans and homeloan applications.
Which banks have you dealt with? Old Mutual Bank? Nedbank?

Who gets your vote??

Standard Bank
ABSA
First National Bank
NedBank
Old Mutual Bank
wizchris@gmail.com