Updates in SimplePay for the 2016/2017 Tax Year
We are pleased to announce that SimplePay clients are once again some of the first to be informed of the relevant changes for the new tax year. As from 01 March 2016, your payroll will automatically meet all the requirements for the 2016/2017 period, as announced in the 2016 Budget Speech on 24 February 2016.
Here are some of the most important changes that you will see in your payroll for the coming year:
2016/2017 Tax Rates:
| Taxable Income (R) | Rate of Tax (R) |
| 0 – 188 000 | 18% of taxable income |
| 188 001 – 293 600 | 33 840 + 26% of taxable income above 188 000 |
| 293 601 – 406 400 | 61 296 + 31% of taxable income above 293 600 |
| 406 401 – 550 100 | 96 264 + 36% of taxable income above 406 400 |
| 550 101 – 701 300 | 147 996 + 39% of taxable income above 550 100 |
| 701 301 and above | 206 964 + 41% of taxable income above 701 300 |
The primary rebate has increased from R13 257 to R13 500.
The tax threshold has also increased from R73 650 to R75 000
The medical aid tax credit has increased as follows:
- The tax credit for the main member plus first dependent has increased from R270.00 to R286.00 per month.
- For every additional dependent, the tax credit has increased from R181.00 to R192.00 per month.
The ‘tax free’ portion for subsistence allowance** has increased as follows:
- The allowance for incidental costs within South Africa has changed from R109.00 to R115.00.
- The allowance for meals and incidental costs within South Africa has changed from R353.00 to R372.00.
**It is important to note that the subsistence allowance is only a guideline provided by SARS and is not legislated.
If you have any questions relating to the above changes, you are welcome to contact SimplePay support to assist you with these queries.
The SimplePay Team