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The 2022 Budget Speech was delivered by Finance Minister Enoch Godongwana on Wednesday, 23 February 2022.
Herewith follows a summary of some of the highlights:
- Rebates will be adjusted in line with inflation. The change in the primary rebate increases the tax-free threshold from R87 300 (in 2021) to R91 250 for taxpayers under the age of 65.
- Tax brackets for individuals for the year of assessment ending 28 February 2023 will be as follows:
Taxable income (R) |
Rates of tax (R) |
1 – 226 000 |
18% of taxable income |
226 001 – 353 100 |
40 680 + 26% of taxable income above 226 000 |
353 101 – 488 700 |
73 726 + 31% of taxable income above 353 100 |
488 701 – 641 400 |
115 762 + 36% of taxable income above 488 700 |
641 401 – 817 600 |
170 734 + 39% of taxable income above 641 400 |
817 601 – 1 731 600 |
239 452 + 41% of taxable income above 817 600 |
1 731 601 and above |
614 192 + 45% of taxable income above 1 731 600 |
- There will be an increase in the value of medical tax credits in 2022/23, rising from R332 to R347 per month for the first two beneficiaries, and from R224 to R234 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 between 4.5% and 6.5% in excise duties on alcohol and tobacco.
- The plastic bag levy is increased by 3 cents to 28 cents per bag from 1 April 2022.
- The general fuel levy and the Road Accident Fund levy remain unchanged.
- Corporate income tax has been reduced to 27% for years of assessment ending on any date on or after 31 March 2023 (this means all entities whose new financial year begins on or after 1 April 2022).
- From 1 March 2022, the employment tax incentive will increase from R1 000 to a maximum of R1 500 per month in the first 12 months and from R500 to a maximum of R750 in the second 12 months.
- 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%
Please 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.