Budget Highlights 2022/2023

09/15/2022
  • Personal Income tax
    • Inflationary relief through a 4.5 per cent adjustment in the tax brackets and rebates.
  • Employment tax incentive
    • Expanded through a 50 per cent increase to R1 500 per month
  • Fuel & RAF levies
    • No change to the general fuel levy or the Road Accident Fund (RAF) levy.
  • Excise duties
    • Increases of between 4.5 per cent and 6.5 per cent on alcohol and tobacco.
  • Corporate Income Tax
    • Effective for tax years ending on or after 31 March 2023 the rate is reduced to 27%
  • Disclosure of wealth
    • It is proposed that all provisional taxpayers with assets above R50 million be required to declare specified assets and liabilities at market value in their 2023 returns.
  • Assessed losses
    • The offsetting of the balance of assessed losses brought forward will be limited to 80% of taxable income for years of assessment ending on or after 31 March 2023.
  • Carbon Tax
    • The first phase will be extended by three years for the period 1 January 2023 to 31 December 2025
  • Plastic bag levy
    • Increase to 28c/bag from 1 April 2022.
  • Health Promotion Levy
    • Beverages with more than 4g of sugar per 100ml will have a levy of 2.31c/g from 1 April 2022

Disclaimer: The information contained in this article is a summary of legislation and budget proposals proposed by the Minister of Finance. We suggest that you do not act solely on material contained in the article as the nature of the information contained herein is general and may in certain circumstances be subject to misinterpretation. In addition, the budget proposals may not include all legislative adjustments which could be made in the near future. Consequently we recommend that our advice be sought when encountering these potentially problematic areas. While every care has been taken in the compilation of the article, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions.