2023 Budget News
Category Law
The South African Finance Minister, Enoch Godongwana, delivered the 2023 budget speech on February 22nd 2023. The budget contained the following highlights that will affect taxpayers and businesses:
Transfer duty: From March 1, 2023, the transfer duty tables will change, with the entry amount of paying transfer duty increased to R1,100,000. The related changes are set out in the table below.
Value of property (R) Rate
1 - 1 100 000 0%
1 100 001 - 1 512 500 3% of the value aboove 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: The rate will decrease from 28% to 27% for years of assessment ending on or after March 31, 2023.
Personal Income Tax: The tax tables have been adjusted, and the tax-free threshold has been increased to R240,000. The rates have also been adjusted to the figures shown in the table below.
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: Trusts, other than special trusts, will be taxed at a rate of 45%.
Solar Rebate: A tax rebate will be 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.
Tax Incentive: A tax incentive of 125% of the cost of renewable energy assets used for electricity generation will be offered to businesses brought into use during a period of 2 years from March 1, 2023.
Fuel Levy: There are no changes to the general fuel levy and road accident fund levy.
These changes will impact the taxpayers and businesses in South Africa. The adjustment of tax tables, companies' income tax, and trust taxes will impact the income and assets of individuals and trusts. The solar rebate and tax incentive for renewable energy will likely incentivize investment in clean energy. The changes to the transfer duty table may affect the sale of property.
Author: Safcom Properties
