Budget Speech 2023 - South Africa | CFO360 Accountants

Budget Speech South Africa 2023 | Highlights & Download

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Budget Speech South Africa 2023 | Highlights & Download

2023 Budget Speech Highlights: New Solar incentives and other adjustents

Solar Incentives:

For all those paying taxes in South Africa this is a pain point and to now has been largely an out of pocket incentives.

This budget speech has expanded the renewable energy incentive available to businesses by a further 25% allowing now a maximum deduction of 125% of the cost of the renewable energy assets. At the corporate tax rate of 27% this is a company tax saving of an additional 6.75% of the total cost of the installation. This will only be available for a 2 year period starting 1 March 2023.

A new personal incentive was launched. This incentive is not as generous and only offers a 25% Rebate on the cost of Solar PV Panels (Ie. Not the cost of Inverters or anything else needed to make the solar incentive useful). Additionally it is capped at R15 000 per year. Lastly this incentive is currently only in place for the 2024 Tax Year (1 March 2023 to 29 February 2024).

Both sorely needed and we hope will strongly encourage further investments in Renewables that will help South Africa Resolve the Energy Crisis it is currently experiencing.

Normal Tax Relief on Income Tax Brackets:

The normal individual tax tables were adjusted as follows:

2024 Tax Tables:

2024 Tax Tables:

Other than this there were minor adjustments to the Small Business Tax table, the Turnover Tax table and the Corporate Tax Rate has been reaffirmed at 27% having reduced to 27% from 28% in the previous budget speech.

Increase of Transfer Duty Exempt Amount

Previously no transfer duty was payable on property purchases up to R1m. This has now been increased to R1.1m. The transfer duty tales compare as follows:

2024 Table:

2023 Table:

Retirement Taxes

The Retirement Taxable Amounts were increased by roughly 10% providing relief for those looking to retire soon. This is a much needed adjustment after a number of years of no adjustments for inflation.

2024 Tables:

2023 Tables:

Employment Tax Incentive

Treasury has also increased the Employment Tax Incentive amounts by 50% to encourage youth employment. For those utilising this incentive, chat to your accountant or payroll provider to ensure this is used were it can be used and that the new adjusted amounts are claimed.

The Usual increases on Sin Taxes

As with any budget for the last decade, Treasury has increased the taxes on what it considers “bad habits”.

Excise duties have been increased by between 4.5 and 6.5 cent for Alcohol and Tobacco products.

The Health Promotion Levy for sugary products has increased by 0.1cent to 2.31 cents from 1 April 2023.

Plastic Bag Levy has increased by 2 cents to 28 cent per bag.

That’s a wrap on our summarised version of the budget. Feel free to reach out to us or your accounting team to understand in more detail how you could utilise these incentives or how this affects you. Alternatively reach out to our offices on  [email protected] or on +27 87 550 1937.

If you want to read the whole budget speech and the more complete set of documents we’ve linked to those below for your convenience.

Download Budget Speech and Tax Guides Below

If you have any further questions about how this may affect you, don’t hesitate to contact your accountant directly or our offices at [email protected] or on +27 87 550 1937.

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