Statutory Alerts

Mar 18, 2025 2 min read

South Africa – Regulations Change

Name: Mercans HR Blizz
Brand: Mercans
Rating: 4.83 (25 reviews)

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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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