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2023 Budget Summary
- 22 February 2023
- Accounting
- South African Accounting Academy
The highlights for this year are:
- Granting tax relief by adjusting personal income tax brackets and rebates for the effect of inflation
- An expanded tax incentive for businesses of 125% of the cost of renewable energy assets used for electricity generation, brought into use during a period of two years from 1 March 2023
- A tax rebate to individuals for solar PV panels of 25% of the cost for a limited period, subject to certain conditions, and capped at R15 000 per individual
- Adjustments to tax tables for transfer duty, retirement fund lump sum benefits and retirement fund lump sum withdrawal benefits, for the effect of inflation
- Increases of 4.9% in excise duties on alcohol and tobacco
- No changes to be general fuel levy and road accident fund levy
- The increase of the health promotion levy on beverages to 2.3 cents per gram of sugar is delayed until 1 April 2025.
- SARS accepted the increased revenue collection estimate announced by Minister of Finance, Mr Enoch Godongwana. In his 2023 Budget Speech, the Minister increased the revenue estimate to R1.69 trillion, an increase of R93.7 billion from the 2022 February Budget statement.
Click here to download the Summary documents:
https://saicawebprstorage.blob.core.windows.net/uploads/resources/SAICA-2023-Budget-Summary.pdf
https://www.sars.gov.za/about/sas-tax-and-customs-system/budget/
https://www.sars.gov.za/tax-rates/
Relevance to Auditors, Independent Reviewers & Accountants:
- The Income Tax Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer, an accountant or tax practitioner, you need to be aware of the proposed changes to tax legislation that is brought about by the annual budget speech.
- As an employer and taxpayer, you also need to comply with the Income Tax Act in your workplace
Relevance to Your clients:
- An entity (company or close corporation) has a duty to comply with the Income Tax Act, and directors have to fulfil their duties accordingly, otherwise they could be held liable.
- It is important to be aware of the proposed changes to tax legislation that is brought about by the annual budget speech.
To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update
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https://cpd.accountingacademy.co.za.