BUDGET NEWS 2023
The much anticipated budget speech delivered by Finance Minister Godongwana on Wednesday 22 February 2023, contained the following highlights:
- The transfer duty tables will change on 1 March 2023. The entry amount of paying transfer duty is increased to R1 100 000 and the related changes are as follows:
|
Value of property (R) |
Rate |
|
1 - 1 100 000 |
0% |
|
1 100 001 - 1 512 500 |
3% of the value above R1 100 000 |
|
1 512 501 - 2 117 500 |
R12 375 + 6% of the value above R1 512 500 |
|
2 117 501 - 2 722 500 |
R48 675 + 8% of the value above R2 117 500 |
|
2 722 501 - 12 100 000 |
R97 075 + 11% of the value above R2 722 500 |
|
12 100 001 and above |
R1 128 600 + 13% of the vlaue exceeding R12 100 000 |
- Companies Income Tax: For years of assessment ending on or after 31 March 2023, the rate will be 27% (down from 28%).
- Personal Income tax tables adjustments are as follows:
|
Taxable Income (R) |
Rate of Tax (R) |
|
(up from the previous R226 000 and the rest of the table follows accordingly) |
|
|
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 |
- Trusts other than special trusts are taxed at a rate of 45%.
- A tax rebate is offered to individuals for solar PV panels of 25% of the cost for a limited period, subject to certain conditions, and capped at R15 000 per individual.
- An expected tax incentive is offered to businesses of 125% of the cost of renewable energy assets used for electricity generation, brought into use during a period of 2 years from 1 March 2023.
- There are no changes to the general fuel levy and road accident fund levy.
Reference: https://mailchi.mp/stbb/stbb-newsflash-2021-budget-news-608693?e=d51c85b8f6
