Dear valued Client
Please find below a very brief summary of the main topics covered by South Africa’s 2022 Budget speech last month.
There were not many changes at all, possibly the right kind of budget to have in this uncertain environment, but there were are few.
Here are the main topics in brief:
Foreign Employment Income remains exempt up to R1,25m.
Personal (& special trusts) Income Tax, inflation adjustments to the brackets.
Tax thresholds therefore increase to:
R91,250 for taxpayers younger than 65
R141,250 for taxpayers aged between 65 and 74
R157,900 for taxpayers aged 75 and over
Corporate Income Tax is down from 28% to 27% from 1 April 2023.
Capital Gains Tax, there’s been no change, inclusion rate still 40% & 80%.
VAT, there’s been no change, i.e. it remains at 15%.
Donations Tax remains unchanged at 20% (30% where it exceeds R30m).
Estate Duty also remains unchanged (20% for the first R30m & 25% thereafter).
Excise Duties on alcohol and tobacco increased by between 4.5% and 6.5%.
General fuel levy and the road accident fund remain unchanged.
Best wishes from the team at Groom Investment Consulting