The much anticipated budget speech delivered this afternoon by Finance Minister Godongwana, 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 value 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.