ARTICLE · 22 FEBRUARY 2006

The 2006/7 Budget

Werksmans Attorneys

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Welcome and generous are perhaps the best words for this year’s budget proposals. Except for companies, for which there are no tax cuts or startling breaks. They will have to wait for next year, as there are indications that corporate tax, including STC, is being reviewed by SARS and National Treasury. But in July this year they will be relieved of the dysfunctional regional services or joint service council levies.

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Paul Ferreira

Andrew Wellsted

Originally published in Tax Werks, Volume 24/February 2006

Welcome and generous are perhaps the best words for this year’s budget proposals.

Except for companies, for which there are no tax cuts or startling breaks. They will have to wait for next year, as there are indications that corporate tax, including STC, is being reviewed by SARS and National Treasury. But in July this year they will be relieved of the dysfunctional regional services or joint service council levies.

But for others – individuals, small businesses, public benefit organisations, donors and heirs – there are not insignificant tax reductions. Small business, particularly, will benefit from lower tax liabilities, including for capital gains tax, and the naughty ones are to get a tax amnesty.

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