Mar 9, 2023 2 min read

South Africa – 2023 Legislation changes

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Effective from 1 March 2023, the South African Government announced the following Amendments to its income tax law:

Under the amendments the below changes have been implemented:

    • The annual tax thresholds have been adjusted as follows.
      • Under 65 – R95 750.00
      • 65 and older – R148 217.00
      • 75 and older – R165 689.00
  • Table for calculation of rate per km/travel allowance has been revised as follows:

    Value of the vehicle (including VAT) (R)Fixed Cost (R.p.a)Fuel Cost (c/km)Maintenance Cost (c/km)
    0 - 100 00033 760141.5043.80
    100 001 - 200 00060 329158.0054.80
    200 001 - 300 00086 958171.7060.40
    300 001 - 400 000110 554184.6065.90
    400 001 - 500 000134 150197.6077.50
    500 001 - 600 000158 856226.6091.00
    600 001 - 700 000183 611230.50102.10
    700 001 - 800 000209 685234.30113.10
    800 001 and above209 685234.30113.10

    The annual income tax rates have been changed as follows:

    Taxable income (R)Rates of tax (R)
    1 – 237 10018% of taxable income
    237 101 – 370 50042 678 + 26% of taxable income above 237 100
    370 501 – 512 80077 362 + 31% of taxable income above 370 500
    512 801 – 673 000121 475 + 36% of taxable income above 512 800
    673 001 – 857 900179 147 + 39% of taxable income above 673 000
    857 901 – 1 817 000251 258 + 41% of taxable income above 857 900
    1 817 001 and above644 489 + 45% of taxable income above 1 817 000

    The medical tax credits have been amended as follows:

    SituationPer month (R)
    For the taxpayer364.00
    For the taxpayer and one dependant728.00
    For each additional dependant246.00

    The annual Retirement fund lump sum withdrawal benefit rates have been revised as follows:

    Taxable income (R)Rates of tax (R)
    1 – 27 5000% of taxable income
    27 501 - 726 00018% of taxable income above 27 500
    726 001 - 1 089 000125 730 + 27% of taxable income above 726 000
    1 089 001 and above223 740 + 36% of taxable income above 1 089 000

    The annual Retirement fund lump sum or severance benefits rates have been adjusted as follows:

    Taxable income (R)Rates of tax (R)
    1 – 550 0000% of taxable income
    550 001 – 770 00018% of taxable income above 550 000
    770 001 – 1 155 00039 600 + 27% of taxable income above 770 000
    1 155 001 and above143 550 + 36% of taxable income above 1 155 000

    For the tax year commencing on 1 March 2023, the above-mentioned changes will need to be effected and applied to ensure compliance with the legislated regulation changes.

    Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

     

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    South Africa – 2023 Legislation Change
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