2024 Budget speech highlights

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Despite escalating pressure to hike taxes to balance government’s finances, no major tax increases were announced during the Finance Minister’s 2024 Budget speech delivered on 22 February 2024.

The budget aims to generate an additional R15 billion in revenue, primarily through personal income tax, by maintaining existing tax brackets, rebates, and medical tax credits without adjustment for inflation. Proposals for the 2024/25 tax year include excise duties on alcohol and tobacco products above inflation rates.

New tax measures include the two-pot retirement reform, incentives for local electric vehicle production, and implementing the global minimum corporate tax. Furthermore, the budget outlines no increases in the general fuel levy and maintains the Road Accident Fund levy.

The implementation date for the two-pot retirement system is 1 September 2024, from which Government expects to raise an additional R5 billion in the 2024 tax year from taxpayers who make use of the once-off withdrawals from their retirement savings.

Regrettably, the solar rebate for individuals, previously announced during the 2023 Budget speech, has been discontinued.

The following rates and rebates all remain unchanged:

  • Primary, secondary, and tertiary rebates (tax-free threshold of R95 750 for taxpayers under the age of 65).
  • Medical tax credits at R364 per month for the first two beneficiaries, and R246 per month for the remaining beneficiaries.
  • The annual exemption on interest earned by individuals younger than 65 years (R23 800) and for individuals 65 years and older (R34 500).
  • The annual contribution limit to tax-free savings accounts at R36 000.
  • VAT at 15%.
  • Dividends withholding tax at 20%.
  • All inclusion rates for Capital Gains Tax.
  • Interest and royalty withholding tax rates at 15%.
  • Corporate income tax rate at 27%.
  • The fuel levy and road accident levy.
  • Transfer duty rate.

The key rate changes include:

  • Global minimum tax at 15% applies to large multinational groups of companies from 1 January 2024.
  • Increase in excise duties on alcoholic beverages, the rate being dependent on the type of beverage.
  • Increase in excise duties on tobacco products.

Kindly note that these lists are not comprehensive. We encourage you to download ASL’s electronic tax guide from our website for more detailed information, by clicking here.

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