It was a mere week ago when Finance Minister Trevor Manuel presented the 2008/2009 Budget in Parliament. There were numerous proposals mentioned, but as a result of an economy, that has decreased in growth there were no major surprises, with the exception of the decrease in the company tax rate and the increase in the VAT turnover threshold. The proposed withholding tax will not apply to income tax exempt entities (retirement funds and public benefit organisations). It has also been proposed that there be cascading relief in terms of the withholding tax. This means that the dividends will be taxed when profits are distributed to individuals or non domestic company shareholders.