The big Budget Speech 2023 tax news was the introduction of tax incentives for investing in rooftop solar and renewable energy. The Budget also detailed tax relief in the form of adjusted tables for tax and rebates for individual taxpayers, adjusted tables for retirement tax and transfer duty, and the expected increases in ‘sin’ taxes. How will these changes affect you directly?
To better understand the impact of the Budget on you and your business, here is a selection of official SARS Tax Tables, then follow the link to Fin 24’s Budget Calculator to do your own calculation.
Businesses – corporate tax rates unchanged*
| CORPORATE TAXES | ||
| Type | Taxable Income (R) / Taxable Turnover (R)* | Rate of Tax (R) |
| Companies – Income Tax | All | *Unchanged at 27% of taxable income for companies with years of assessment ending between 1 April 2023 and 31 March 2024; down from 28% for other companies. |
| Small Business Corporations – Income Tax | 1 – 95 750 | 0% of taxable income |
| Small Business Corporations – Income Tax | 95 751 – 365 000 | 7% of taxable income above 95 750 |
| Small Business Corporations – Income Tax | 365 001 – 550 000 | 18 848 + 21% of taxable income above 365 000 |
| Small Business Corporations – Income Tax | 550 001 and above | 57 698 + 27% of the amount above 550 000 |
| Micro Businesses – Turnover Tax | 1 – 335 000* | 0% of taxable turnover |
| Micro Businesses – Turnover Tax | 335 001 – 500 000* | 1% of taxable turnover above 335 000 |
| Micro Businesses – Turnover Tax | 500 001 – 750 000* | 1 650 + 2% of taxable turnover above 500 000 |
| Micro Businesses – Turnover Tax | 750 001 and above* | 6 650 + 3% of taxable turnover above 750 000 |
Source: SARS’ Budget Tax Guide 2023
Individual taxpayers – tax tables adjusted
| INDIVIDUAL TAXES | |
| Taxable Income (R) | Rate of Tax (R) |
| 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 |
Source: SARS
| INDIVIDUAL TAX REBATES | ||
| Type | 2024 | 2023 |
| Primary | R17 235 | R16 425 |
| Secondary (65 and older) | R9 444 | R9 000 |
| Tertiary (75 and older) | R3 145 | R2 997 |
Source: SARS
| INDIVIDUAL TAX THRESHOLDS | ||
| Age | 2024 | 2023 |
| Under 65 | R95 750 | R91 250 |
| 65 an older | R148 217 | R141 250 |
| 75 and older | R165 689 | R157 900 |
Source: SARS
Transfer duty table – adjusted
| TRANSFER DUTY | |
| Value of property (R) | Rate |
| 1 – 1 100 000 | 0% |
| 1 100 001 – 1 512 500 | 3% of the value above R1 100 000 |
| 1 512 501 – 2 117 500 | R12 375 + 6% of the value above R 1 512 500 |
| 2 117 501 – 2 722 500 | R48 675 + 8% of the value above R 2 117 500 |
| 2 722 501 – 12 100 000 | R97 075 +11% of the value above R2 722 500 |
| 12 100 001 and above | R1 128 600 + 13% of the value exceeding R12 100 000 |
Source: Budget 2023 People’s Guide
Sin taxes raised
| EXCISE DUTIES | |
| Excise duties on | Increases by |
| Malt beer | 10c per 340ml can |
| Unfortified wine | 18c per 750ml bottle |
| Fortified wine | 31c per 750ml bottle |
| Sparkling wine | 9c per 750ml bottle |
| Ciders and alcoholic fruit beverages | 10c per 340ml can |
| Spirits | R3.90 per 750ml bottle |
| Cigarettes | 98c per packet of 20 |
| Heated tobacco product sticks | 73c per packet of 20 |
| Cigarette tobacco | R1.10 per 50g |
| Pipe tobacco | 33c per 25g |
| Cigars | R5.47 per 23g |
Source: Budget 2023 People’s Guide
How much will you be paying in income, petrol and sin taxes?
Use Fin 24’s four-step Budget Calculator here to find out the monthly and annual impact on your income tax, as well as what you will pay in future in terms of fuel and sin taxes, bearing in mind that the best way to fully understand the impact of the announcements in Budget 2023 on your own and your business affairs is to reach out for professional advice from your accountant.