Budget

Finance Minister Enoch Godongwana’s 2023 Budget speech drew attention to the following:

the tax-free threshold will be increased from R91 250 to R95 750’
medical tax credits will be increased to R364 per month for the first two members, and to R246 per month for additional members
the threshold on tax-free withdrawals from retirement funds at retirement will be increased to R550 000
there will be no transfer duties payable on a property purchased for below R1.1m
‘the research and development tax incentive will be extended for 10 years, and will be refined to make it simpler and more effective’
‘the urban development zone tax incentive will … be extended by two years to allow for the review of the incentive to be completed’
‘the minimum royalty rate for oil and gas companies will be increased to 2%’, with no change in the maximum rate of 5%
‘the health promotion levy (sugar tax) will remain unchanged for the following two fiscal years, to enable the industry to diversify or restructure’ and
there will be a 4.9% increase in excise duties on alcohol and tobacco.

In the context of the ongoing energy crisis, the Minister announced that:

‘from 1 March 2023, businesses will be able to reduce their taxable income by 125% of the cost of an investment in renewables’ (‘there will be no thresholds on the size of the projects that qualify, and the incentive will be available for two years to stimulate investment in the short term’)
‘individuals who install rooftop solar panels from 1 March 2023 will be able to claim a rebate of 25% of the cost of the panels, up to a maximum of R15 000’ (the incentive ‘will be available for one year’ and ‘can be used to reduce … tax liability in the 2023/24 tax year’)
‘government will guarantee solar-related loans for small and medium enterprises on a 20% first-loss basis’
‘the general fuel levy and the Road Accident Fund levy will not be increased this year’, and that
from 1 April 2023 for two years, ‘the refund on the Road Accident Fund levy for diesel used in the manufacturing process, such as for generators, will be extended to manufacturers of foodstuffs’.

Stakeholders and members of the public are encouraged to refer to the following documents:

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