1. Creating opportunities in tough times Budget 2012 www.pwc.co.za/budget

2. Agenda Tax collection review Individuals Corporates / Business National Treasury legislation drafting 22

3. Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles Second level - Third level ◦ Fourth level › Fifth level Who will pay? 33

4. Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles Second level - Third level ◦ Fourth level › Fifth level Who is paying? 44

5. Individuals 5Slide 5

6. Click to edit Master subtitle style Individuals Aspects welcomed Retirement contributions Simplification & increase of deduction limits Increase in CGT exemption thresholds Tax-preferred savings & investments

7. Click to edit Master subtitle style Individuals Concerns Personal income tax burden 4.5% will pay 38% Savings disincentives Scrapping the interest exemption Capped contributions Increased DT Increased CGT Medical Credits Double disadvantage for middle / high income earners

8. Business 8Slide 8

9. Click to edit Master subtitle style Business Aspects welcomed Small business relief Interest deductions for share acquisitions Review of property loan stock companies Special economic zones Foreign company tax rate Taxation of financial instruments Quasi-equity loans to foreign subsidiaries

10. Click to edit Master subtitle style Business Concerns Withholding Tax rates (Revenue expectation) Dividends Tax changes (Rate & STC credits) Uniformity of passive income and gains Carbon Tax fait accompli?

11. National Treasury 11Slide 11

12. Click to edit Master subtitle style National Treasury – Legislation drafting Drafting resource-constraints persist Increasing incidence of anomalies and errors Policy debates not being addressed Period of consolidation required

13. Questions... This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers Inc, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2012 PricewaterhouseCoopers (“PwC”), a South African firm, PwC is part of the PricewaterhouseCoopers International Limited (“PwCIL”) network that consists of separate and independent legal entities that do not act as agents of PwCIL or any other member firm, nor is PwCIL or the separate firms responsible or liable for the acts or omissions of each other in any way. No portion of this document may be reproduced by any process without the written permission of PwC.

14. Creating opportunities in tough times Budget 2012 www.pwc.co.za/budget