The 2020 Budget Speech in a nutshell

Xero’s getting even better – with Hubdoc
Mar 17, 2020
Die 2020 begrotingsrede in ’n neutedop
Mar 17, 2020

Kliek hier vir AFRIKAANS

Finance Minister Tito Mboweni delivered his second National Budget Speech on 26 February 2020. Taxpayers can breathe a little easier as he announced no major tax increases.

  • The personal income tax brackets and the primary, secondary and tertiary rebates will be increased by 5.2% for 2020/21, which is above the expected inflation of 4.4%.
  • Tax brackets for individuals for 2020 will be as follows:
Taxable income (R) Rates of tax (R)
1 – 205 900 18% of taxable income
205 901 – 321 600 37 062 + 26% of taxable income above 205 900
321 601 – 445 100 67 144 + 31% of taxable income above 321 600
445 101 – 584 200 105 429 + 36% of taxable income above 445 100
584 201 – 744 800 155 505 + 39% of taxable income above 584 200
744 801 – 1 577 300 218 139 + 41% of taxable income above 744 800
1 577 301 and above 559 464 + 45% of taxable income above 1 577 300

 

  • There will be an increase in the value of medical tax credits in 2020/21, rising from R310 to R319 per month for the first two beneficiaries, and from R209 to R215 per month for the remaining beneficiaries.
  • The annual limit on contributions to tax-free savings accounts will be increased from R33 000 to R36 000 from 1 March 2020.
  • The Government will increase the cap on the exemption of foreign remuneration earned by South African tax residents to R1.25 million per year, starting from
    1 March 2020.
  • To support the property market, the threshold for transfer duties has been adjusted. Property costing R1 million or less will no longer be subject to transfer duty.
  • Some of the indirect tax changes include:
    • Increasing the fuel levy by 25c/litre, consisting of a 16c/litre increase in the general fuel levy and a 9c/litre increase in the RAF levy; and
    • Increasing excise duties on alcohol and tobacco by between 4.4 and 7.5%.
  • The following rates remain unchanged:
    • VAT at 15%;
    • Corporate income tax at 28% and dividends withholding tax at 20%;
    • All inclusion rates for Capital Gains Tax; and
    • Interest and royalty withholding tax rates at 15%

This list is not comprehensive. You are welcome to download ASL’s electronic tax guide from our website.

Download the full summary HERE

View the visual highlights HERE

ASL
ASL