During 2022, we saw significant movements in global markets, from both an equity and fixed income perspective. Risk-off, fear and uncertainty were the order of the day. On the local side, markets held up relatively well in comparison and it left local investors puzzled. Weak growth, a record amount of loadshedding, high interest rates and an uncertain global backdrop are all factors that should send investors running for the hills, but local seems to remain lekker.

Year-to-date, there has been a healthy rebound in asset prices as inflation numbers are starting to ease, China is reopening and Europe seems to be more resilient than what the market initially expected. The JSE All Share Index reached an all-time high in January 2023, despite the uncertainties our market currently faces. How is that possible you may ask? 

Minimum investment R100,000, five-year term. For more information, email service@daberistic.com or book a discussion with Kevin Yeh: https://calendly.com/daberistic/15min

On Friday 24 February, the Financial Action Task Force (FATF) announced its decision to greylist South Africa. The decision has had both a reputational as well as economic impact on the country. With this said, the true impact of the news will only be revealed with time.

Background

In October 2021, the Financial Action Task Force (FATF), a global money laundering and terrorist financing watchdog, identified key weaknesses in some of South Africa’s financial regulations. South Africa was subsequently allowed to address these weaknesses and report back to the FATF as to how these weaknesses would be addressed (within roughly 12 months). 

​Some of the things that stood out was incentivisation of rooftop solar, energy support packages as well as relief in terms of personal income tax.
Energy support package

• In line with announcements made by President Cyril Ramaphosa in his latest State of The Nation Address (SONA), the finance minister said that there are two new tax measures to encourage businesses and individuals to invest in renewable energy and increase electricity generation in South Africa. From 1 March 2023
• Businesses will be able to reduce their taxable income by 125% of the cost of an investment in renewables
• Solar Incentive: There will be Tax incentives for households to install solar panels and businesses to invest in renewable power generation. Household will be able to claim rebate of 25% of what they spend on solar panels with a cap of R15,000. Click here on some ​

  Tax relief

• There is no increase to the general fuel levy and only inflation-related increases to sin taxes.Under the budget, no changes were announced to things like state duty or capital gains tax. According to the minister, the personal income tax brackets will be fully adjusted for inflation, which will increase the tax-free threshold from R91,250 to R95,750.
• Two-pot retirement system
  In terms of retirement, from 1 March 2024, the new “two-pot” retirement system will be implemented. New draft of the legislation is in the pipeline, said Godongwana. Minister has increased the tax-free lump sum that retirees can claim to R550,000.

Dividends: Dividends received by individuals from South African companies are generally exempt from income tax, but dividends tax, at a rate of 20%, is withheld by the entities paying the dividends to the individuals.

Interest: A final tax at a rate of 15%, is imposed on interest from a South African source, payable to non-residents. Interest is exempt if payable by any sphere of the South African government, a bank, or if the debt is listed on a recognised exchange.

Capital Gains Tax: Maximum effective rate of tax: Individuals and special trusts  18%, Companies   21.6%, Other trusts   36%

Travelling allowance: Rates per kilometer, which may be used in determining the  allowable deduction for business travel against an allowance or advance where actual costs are not claimed, are determined using the table published on the SARS Click here to view 

Transfer Duty: Transfer duty is payable at the following rates on transactions that  are not subject to VAT:
Acquisition of property by all persons:

1. Small Business Corporations
Taxable Income     Rate of Tax
1 – 95 750 0% of taxable income
95 751 – 365 000 7% of taxable income above 95 750
365 001 – 550 000 18 848 + 21% of taxable income above 365 000
550 001 and above 57 698 + 27% of the amount above 550 000
​
2.Turnover for Tax For Micro Business
Taxable turnover (R) Rate of tax (R)
1 – 335 000 0% of taxable turnover
335 001 – 500 000 1% of taxable turnover above 335 000
500 001 – 750 000 1 650 + 2% of taxable turnover above 500 000
750 001 and above 6 650 + 3% of taxable turnover above 750 000

Value-added Tax (VAT): ​VAT is levied at the standard rate of 15% on the supply of goods and services by registered vendors. A vendor making taxable supplies of more than R1 million per annum must register for VAT. A vendor making taxable supplies of more than R50 000, but not more than R1 million per annum, may apply for voluntary registration. Certain supplies are subject to a zero rate, or are exempt from VAT.

Estate Duty: Estate duty is levied on the property of residents and the South  African property of non-residents, less allowable deductions. The duty is levied on the dutiable value of an estate, at a rate of 20%, on the first R30 million, and at a rate of 25% above R30 million.
A basic deduction of R3.5 million is allowed in the determination of an estate’s liability for estate duty, as well as deductions for liabilities, bequests to public benefit organisations, and property accruing to surviving spouses.

Donations Tax: ​Donations tax is levied at a flat rate of 20% on the cumulative  value of property donated since 1 March 2018, not exceeding R30 million, and at a rate of 25% on the cumulative value of property donated since 1 March 2018 exceeding R30 million.
The first R100 000 of property donated in each year by a natural person is exempt from donations tax.

Securities Transfer Tax: The tax is imposed at a rate of 0.25 % on the transfer of listed or  unlisted securities.  Securities consist of shares in companies or member’s interests in close corporations.

Tax on International Air Travel: R190 per passenger departing on international flights, excluding  flights to Botswana, eSwatini, Lesotho and Namibia, in which case the tax is R100. 

Skills Development Levy: A skills development levy is payable by employers at a rate of 1%  of the total remuneration paid to employees. Employers paying an annual remuneration of less than R500 000 are exempt from paying skills development levies.

Unemployment Insurance Contributions: ​Unemployment insurance contributions are payable monthly by  employers, on the basis of a contribution of 1% by employers and 1% by employees, based on the employees’ remuneration below a certain amount.  Employers not registered for PAYE or SDL must pay the
contributions to the Unemployment Insurance Commissioner.

The need to prepare financially for funerals is one of the major drivers of insurance in South Africa. This has resulted in a highly accessed market with a number of providers across the industry. With policyholders demonstrating significant differences in mortality risk, combined with minimal underwriting, large cross subsidies are inherent in the market today and present a clear opportunity for disruption. 

Discovery Funeral Plan 2.0
Discovery now brings you a unique policy that not only covers these costs ,but also provides additional value through discounts and premiums back in cash.

​Discovery’s additional benefit the WELLTH fund came into effect on 01 January 2023.
This benefit is a once-off benefit to all medical aid members in which it provides up to R10,000 in additional cover for a family’s healthcare needs.

Fund Allocation
The WELLTH Fund will be activated in 2023, once members completed their health check in 2022 or 2023 This sets the baseline for a member’s Health Status.
To activate the WELLTH Fund, every person on a membership certificate aged 2+ must first complete their relevant health check at a healthcare provider in Discovery’s Wellness Network.
Once the member and all their dependents have completed their Health Checks, they will have access to WELLTH Fund of up to R10,000, below is a chart of how funds are allocated.

​Where to use your WELLTH Fund
The WELLTH Fund covers over and above the annual Screening and Prevention Benefit.

​Discovery App WELLTH fund tracking
On your Discovery APP the WELLTH Fund Dashboard (shown below) will allow members to view all available health checks and recommended next best actions, book consultations and keep track of their use of the WELLTH Fund. 

How tests are covered
This benefit is available once per beneficiary, per lifetime. Discovery pays the above healthcare services from the WELLTH Fund up to the Scheme Rate and up to your WELLTH Fund limit. Some of these tests and treatments have a rand value limit depending on the number of active dependents you have on your membership. Once you have reached your allocated rand value limit for the tests, Discovery will pay any extra screening and preventive tests and treatments from your available day-to-day benefits, where applicable. The Scheme’s clinical entry criteria, treatment guidelines and protocols apply. The normal claims process applies. Discovery will automatically pay this from your WELLTH Fund.

FAQ

1. Why is my WELLTH Fund not yet active?

Your WELLTH Fund is not yet active due to one or more of these reasons:

• You or some of the dependents (aged two and older) on your policy have not completed a Health Check in the last 12 months.
• Your healthcare provider has not yet submitted the Health Check to Discovery.
  

    2. Does the WELLTH Fund cover Medical devices?
Yes, the WELLTH Fund covers the following specific medical devices if they have a registered NAPPI code and are bought from a registered healthcare provider with a valid practice number (such as a pharmacy or doctor):

• Blood pressure monitors
• Glucometers
• Cholesterol monitors
• Peak flow meters
• Spirometers
  

   3. Must I use network providers to be covered by the WELLTH Fund?
It depends on which health plan you have.
Plan network rules apply for members on Smart and KeyCare plans:

• Members on Smart plans must use a Smart network GP for GP services covered by the WELLTH Fund.
• Members on KeyCare plans must use their allocated GP for GP services covered by the WELLTH Fund.
• Members on Smart plans must use an optometrist in the Smart plan network. Members on KeyCare plans must use optometrists and dentists in the KeyCare plan network.

Members on KeyCare and Smart plans do not need a GP-to-specialist referral and authorisation to access specialist screening and prevention check-ups covered by the WELLTH Fund.
Members on all other plans may use a provider of their choice and do not have to use a network provider to be covered by the WELLTH Fund.
   4. The WELLTH Fund tool has recommended a list of check-ups that I should go for, am I only covered for these check-ups? No, the WELLTH Fund Tool is just a guide for which screening check-ups are most suitable for you, based on your age and gender. However, you can go for any of the screening and preventative check-ups covered by the WELLTH Fund - you don't have to go for those recommended by the tool.

   5. Can I claim for medication from the WELLTH Fund? No, you cannot claim any medication from the WELLTH Fund.

    6. How can I book an appointment to use my WELLTH Fund?

• To book an appointment for a Health Check so you can unlock your WELLTH Fund, use the booking option on your WELLTH Fund dashboard.
• To book an appointment for any of the screening and preventative check-ups covered by the WELLTH Fund, use the "Find a Provider" functionality on the Discovery website or app.
• You can also use the WELLTH Fund Tool to guide you on which check-ups are recommended for you, based on your age and gender. From the recommended check-ups, you can then book an appointment with a healthcare provider near you.

For more information, please contact our Health department on 011 658 1333 or email us on service@daberistic.com 

Source: Discovery

Discovery Life gave us an update on the Evolution of Discovery Life for 2023. Discovery has pioneered the evolution of Life Insurance in three distinct phase: The separation of risk from investment, the introduction of the Shared-value Insurance model, and now, the personalization of the client experience through digitisation. Each phase embodies innovative product that meet Discovery client needs and create unmatched value, while making them healthier, and enhancing and protecting their lives. 

Discovery Life has introduced the revolutionary new Discovery Life Plan 3.0 – The Future of Life Insurance, Now.

On 22nd February 2023 Discovery have introduced the Discovery Life Plan 3.0, which personalises life insurance through digitisation, to deliver a seamless and hassle-free experience for you and your clients. As we move towards the modern digital era, this next-generation life insurance will be accessed on the mobile phone, offering your clients convenience and ease.

This plan includes:

• Streamlined cover into one powerful Life Fund
• Comprehensive, world-leading risk benefits
• Simplified and augmented Shared-value Insurance model with upfront premium discounts of up to 48%
• Up to 100% of clients’ Life Fund value paid out in additional payments from age 65.