South Africa – Regulations Change
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The South African minister of finance announced the 2025/26 budget speech on 12 March 2025. Similar to the 2024/25 budget speech, there were no changes made to the income tax tables, tax threshold, rebates and medical aid tax credits.
Income Tax
| Taxable Income (R) | Rate 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 | Amount |
|---|---|
| Primary | R17 235 |
| Secondary (Persons 65 years and older) | R9 444 |
| Tertiary (Persons 75 years and older) | R3 145 |
Tax Threshold
| Age | Amount |
|---|---|
| Below age 65 | R95 750 |
| Age 65 to below 75 | R148 217 |
| Age 75 and above | R165 689 |
Retirement Fund Lump Sum Withdrawal Benefits
| Taxable income (R) | Rate of Tax (R) |
|---|---|
| 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 Benefits or Severance Benefits
| Taxable income (R) | Rate of Tax (R) |
|---|---|
| 1 – 550 000 | 0% of taxable income |
| 550 001 – 770 000 | 18% of taxable income above 27 500 |
| 770 001 – 1 155 000 | 125 730 + 27% of taxable income above 726 000 |
| 1 155 001 and above | 223 740 + 36% of taxable income above 1 089 000 |
Additionally, the South African Revenue Services (SARS) issued a notice announcing new rates for subsistence and travel allowance rates as per below. The new rates are effective from 1 March 2025.
Subsistence Allowance:
- Overnight Trips – Meals and incidentals: Increased from R548 to R570.
- Overnight Trips – Incidentals only: Increased from R169 to R176.
- Day Trips – Meals and incidentals: Increased from R169 to R176.
Travel Allowances
- Motor vehicle rate per kilometre – Reduced from R4.84 to R4.76.
Table for Determining Travel Allowance
| Where the value of the vehicle - | Fixed Cost R | Fuel Cost (c/km) | Maintenance Cost (c/km) |
|---|---|---|---|
| Does not exceed R 100 000 | 33 940 | 146.7 | 47.4 |
| Exceeds R100 000 but does not exceed R200 000 | 60 688 | 163.8 | 59.3 |
| Exceeds R200 000 but does not exceed R300 000 | 87 497 | 177.9 | 65.4 |
| Exceeds R300 000 but does not exceed R400 000 | 111 273 | 191.4 | 71.4 |
| Exceeds R400 000 but does not exceed R500 000 | 135 048 | 204.8 | 83.9 |
| Exceeds R500 000 but does not exceed R600 000 | 159 934 | 234.9 | 98.5 |
| Exceeds R600 000 but does not exceed R700 000 | 184 867 | 238.9 | 110.5 |
| Exceeds R700 000 but does not exceed R800 000 | 211 121 | 242.9 | 122.5 |
| ExceedS 800 000 | 211 121 | 242.9 | 122.5 |
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change
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South Africa - Regulations Change - 1 March 2025
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