Highlights from the 2023 Budget Speech

Hoogtepunte uit die 2023-Begrotingsrede
April 11, 2023
Wysigings aan die Wet op die Beheer oor Trustgoed vereis meer beheer van trustees
April 11, 2023
Kliek hier vir AFRIKAANS

Finance Minister Enoch Godongwana delivered the National Budget address on Wednesday, 22 February 2023.Overall, the budget speech reflected a cautious approach to fiscal management, with a focus on promoting economic growth, creating jobs, and addressing social inequality. While there were some changes to tax rates and excise duties, these were relatively minor and aimed at achieving specific policy goals, rather than raising revenue. The government’s commitment to fiscal consolidation and responsible management of public finances remains a key priority.Here are some of the key changes and non-changes that were announced in the Minister’s speech:

• Individuals who install rooftop solar panels from 1 March 2023 will be able to claim a rebate of 25% of the cost of the panels, up to a maximum of R15 000. This can be used to reduce
their tax liability in the 2023/24 tax year. This incentive will be available for one year.

• Rebates will be adjusted in line with inflation. The change in the primary rebate increases the tax-free threshold from R91 250 (in 2022) to R95 750 for taxpayers under the age of 65.

• There were no changes to the personal income tax rates. However, there were some changes to the tax brackets, with an adjustment for inflation. This means that individuals will be able to earn slightly more before moving up to a higher tax bracket. Tax brackets for individuals for the year of assessment ending 29 February 2024 will be as follows:

Taxable income (R) Rates of tax (R)
1 – 237 100 18% of taxable income
237 101 – 370 500 42 678 + 26% of taxable income above 237 100
370 501 – 512 800 77 362 + 31% of taxable income above 370 500
512 801 – 673 000 121 475 + 36% of taxable income above 512 800
673 001 – 857 900 179 147 + 39% of taxable income above 673 000
857 901 – 1 817 000 251 258 + 41% of taxable income above 857 900
1 817 001 and above 644 489 + 45% of taxable income above 1 817 000
  • There will be an increase in the value of medical tax credits in 2023/24, rising from R347 to R364 per month for the first two beneficiaries, and from R234 to 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) remains the same.
  • The annual contribution limit to tax-free savings accounts remains R36 000.
  • Increases of 9% in excise duties on alcohol and tobacco.
  • For the years of assessment ending on 31 March 2023 and later the rate of Corporate Income Tax payable is 27%.
  • The following rates remain unchanged:
    • VAT at 15%
    • Dividends withholding tax at 20%
    • All inclusion rates for Capital Gains Tax
    • Interest and royalty withholding tax rates at 15%

Kindly note that this list is not comprehensive.

You are welcome to download ASL’s electronic tax guide from our website by clicking HERE.

 For more information, you can contact us on 021 840 1600 or via tax@asl.co.za.
We use cookies to improve your experience on our website. By continuing to browse, you agree to our use of cookies