On 23 February 2022, the Finance Minister, Mr Enoch Godongwana, delivered the 2022-2023 Budget Speech to the National Assembly at the Good Hope Chamber. Some of the main tax measures are given below:
- The corporate income tax rate was proposed to reduce from 28% to 27% for companies with years of assessment ending on or after 31 March 2023 (starting on or after 1 April 2022).
- Provisional corporate income tax collections from the mining, finance and manufacturing sectors have accelerated. The positive performance of finance and manufacturing, which historically accounted for close to 60 per cent of total provisional corporate income tax collections, indicates a wider revenue recovery.
- As from 1 March 2022, personal income tax tables will be adjusted by 4.5% in line with inflation. Most of the relief is provided through an adjustment in personal income tax brackets and rebates. The tax free threshold for personal income taxes is increased to R 91 250 (from R87 300) for persons under age 65; to R 141 250 (from R135 150) for persons aged 65 to 74; and to R157 900 (from R151 100) for persons aged 75 and over.
- From 23 February 2022, excise duties on tobacco and alcohol products will be increased to 4.5% and 6.5%.
- The employment tax incentive will be expanded through a 50 per cent increase in the maximum monthly value to R1 500.
- No changes to the dividend withholding tax rate were announced which remains at 20%.
- No changes announced to the taxation of capital gains.
