Budget 2023 focussed firmly on the energy State of Disaster. The most prominent announcement was that government would take over R254 billion of Eskom’s debt, while two tax relief measures totalling R9 billion were introduced to assist individuals and businesses to invest in solar and renewable alternatives.
As a result of this and an improvement in revenue, there were no major tax proposals in this Budget. The respite from tax increases and the tax relief from adjusted tax brackets and rebates for individual taxpayers was welcomed, while the increases in sin taxes were expected. Here is a brief overview of the most pertinent announcements for individuals and businesses, that serve to highlight the need for professional tax advice.
The big Budget Speech 2023 tax news was the introduction of tax incentives for investing in rooftop solar and renewable energy. The Budget also detailed tax relief in the form of adjusted tables for tax and rebates for individual taxpayers, adjusted tables for retirement tax and transfer duty, and the expected increases in ‘sin’ taxes. How will these changes affect you directly?
To better understand the impact of the Budget on you and your business, here is a selection of official SARS Tax Tables, then follow the link to Fin 24’s Budget Calculator to do your own calculation.
Businesses – corporate tax rates unchanged
Corporate Taxes
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Source: SARS’ Budget Tax Guide 2023
Individual taxpayers – tax tables adjusted
Individual Taxes
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Source: SARS
Individual Tax Rebates
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Source: SARS
Individual Tax Thresholds
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Source: SARS
Transfer duty table – adjusted
Transfer Duty
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Source: Budget 2023 People’s Guide
Sin taxes raised
Excise Duties
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Source: Budget 2023 People’s Guide
How much will you be paying in income, petrol and sin taxes?
Use Fin 24’s four-step Budget Calculator here to find out the monthly and annual impact on your income tax, as well as what you will pay in future in terms of fuel and sin taxes, bearing in mind that the best way to fully understand the impact of the announcements in Budget 2023 on your own and your business affairs is to reach out for professional advice from your accountant.
