RSA: Tax Proposals 1 March 2023 – 29 February 2024

RSA: Tax Proposals 1 March 2023 – 29 February 2024

During the 2023 Budget Speech delivered to the National Assembly today, the Minister of Finance, Mr Enoch Godongwana, outlined the government’s fiscal priorities and proposed tax relief measures for the year ahead. Below is a summary of the changes affecting payroll.

Personal Income Tax Thresholds
The 2023/24 tax brackets will be adjusted in line with the expected inflation rate of 4.9 per cent.  

Taxable income (R)

Rates of tax

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


Tax Rebates

Rebate

2023/2024

2022/2023

2021/2022

2020/2021

2019/2020

Primary

R17 235

R16 425

R15 714

R14 958

R14 220

Secondary (65 and older)

R9 444

R9 000

R8 613

R8 199

R7 794

Tertiary (75 and older)

R3 145

R2 997

R2 871

R2 736

R2 601


Tax Thresholds

Age

2023/2024

2022/2023

2021/2022

2020/2021

2019/2020

Under 65

R95 750

R91 250

R87 300

R83 100

R79 000

65 an older

R148 217

R141 250

R135 150

R128 650

R122 300

75 and older

R165 689

R157 900

R151 100

R143 850

R136 750


Medical Scheme Fees Tax Credits

Per month

2023/2024

2022/2023

2021/2022

2020/2021

2019/2020

For the taxpayer; or for a dependant who is a member of a medical scheme or fund, where the taxpayer him- or herself is not a member of a medical scheme or fund

R364

R347

R332

R319

R310

For  the taxpayer and one dependant; or in respect of two dependants where the taxpayer him- or herself is not a member of a medical scheme or fund

R728

R694

R664

R638

R620

For each additional dependant

R246

R234

R224

R215

R209


Corporate Income Tax and PSP Tax Rates

Companies Income Tax Rate

Financial years ending on any date between

Rate of Tax

31 March 2023 or after

27%

1 April 2022 – 30 March 2023

28%

1 April 2021 31 March 2022

28%

1 April 2020 31 March 2021

28%

1 April 2019 31 March 2020

28%


Trusts (other than special trusts)

 

2023/2024

2022/2023

2021/2022

2020/2021

2019/2020

Rate of Tax

45%

45%

45%

45%

45%

*Personal Service Providers are taxed as a company or as a Trust

Subsistence Allowances and Advances

Per day

2023/2024

2022/2023

2021/2022

2020/2021

2019/2020

Meals & Incidentals (away from usual place of residence in SA for at least one night)

R522

R493

R452

R452

R435

Incidentals only (away from usual place of residence in SA for at least one night)

R161

R152

R139

R139

R134

Day travel only: Meals & Incidentals (away from usual place of work)

R161

R152

R139

 

 

 
Rate per Kilometre

 Per km

2023/2024

2022/2023

2021/2022

2020/2021

2019/2020

Fixing of rate per kilometre in respect of motor vehicles

R4.64

R4.18

R3.82

R3.98

R3.61


Fixed Cost Table

Where the value of the vehicle 

Fixed cost (R)

Fuel cost (c/km)

Maintenance cost (c/km)

does not exceed R100 000 

33 760

141.5

43.8

exceeds R100 000 but does not exceed R200 000

60 329

158.0

54.8

exceeds R200 000 but does not exceed R300 000

86 958

171.7

60.4

exceeds R300 000 but does not exceed R400 000

110 554

184.6

65.9

exceeds R400 000 but does not exceed R500 000

134 150

197.6

77.5

exceeds R500 000 but does not exceed R600 000

158 856

226.6

91.0

exceeds R600 000 but does not exceed R700 000

183 611

230.5

102.1

exceeds R700 000 but does not exceed R800 000

209 685

234.3

113.1

exceeds R800 000 

209 685

234.3

113.1


Retirement Fund Lump Sum Withdrawal Benefits

Taxable income (R)

Rates of tax

1 – 27 500

0% of taxable income

27 501 - 726 000

18% of taxable income above 27 500

726 001 - 1 089 000

125 730 + 27% of taxable income above 726 000

1 089 001 and above

223 740 + 36% of taxable income above 1 089 000


Retirement Fund Lump Sum/Severance Benefits 

Taxable income (R)

Rates of tax

1 – 550 000

0% of taxable income

550 001 - 770 000

18% of taxable income above 550 000

770 001 – 1 155 000

39 600 + 27% of taxable income above 770 000

1 155 001 and above

143 550 + 36% of taxable income above 1 155 000


New statutory rates will be updated on PaySpace soon. A Tax Alert will be distributed once the updated rates have been implemented in production.

Please refer to the attached Budget 2023 Tax Guide for further explanation. 



















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