South Africa: Statutory updates for the 2022-2023 Tax Year
Please take note of the following statutory changes for RSA to be released within the next few days:
- An expansion of the employment tax incentive, through a 50% increase in the maximum monthly value, to R1 500. Furthermore, the definitions of “employee” and “monthly remuneration” are amended to assist in curbing the ETI abuse.
- Extending the nature of awards provided in recognition of long service, to include a wide range of awards not only limited to the acquisition of non-cash assets.
- Reduction in the rate of tax to 27% for personal service providers where their year of assessment ends on any date on or after 31 March 2023.
We advise customers not to finalise their payrolls for March if any of the above is applicable to their payrolls.