2023 Budget in a nutshell

No massive changes in the coming tax year beyond:

  • Tabaco increases by 98c per pack of 20
  • Beer increases by 10c per 340ml
  • Wine increases by 18c per 750ml
  • General Fuel levy remains unchanged
  • Sugar Tax increase is delayed till April 2025
  • Solar incentives come into effect from 1 March 2023

Personal Income Tax

Personal Income Tax should see some relieve after inflation-adjusted tax rates have been released.

​Taxable income (R)​Rates of tax (R)
1 – 237 100 18% of taxable income
237 101 – 370 50042 678 + 26% of taxable income above 237 100
370 501 – 512 80077 362 + 31% of taxable income above 370 500
512 801 – 673 000121 475 + 36% of taxable income above 512 800
673 001 – 857 900179 147 + 39% of taxable income above 673 000
857 901 – 1 817 000251 258 + 41% of taxable income above 857 900
1 817 001 and above644 489 + 45% of taxable income above 1 817 000
Rebates 
​PrimaryR17 235   
​Secondary (65 and older)R9 444
​Tertiary (75 and older)R3 145
AgeTax Threshold
Under 65R95 750
​65 an olderR148 217
​75 and olderR165 689

Medical Aid Tax credits have increased to R364 for the first 2 individuals and R246 for each additional dependent.

Subsistence allowances paid for travel in South Africa have been increased as follows

  • Meals and incidental costs, an amount of R522 per day is deemed to have been expended
  • Incidental costs only, an amount of R161 for each day, which falls within the period, is deemed to have been expended.

Reimbursive travel has been adjusted to R4.64 per kilometre of travel. Any value paid above the given rate is taxable. Companies may reimburse at below the given rate.

Dividends Tax

Dividends Tax remains unchanged at 20%

Income Tax – Companies

TypeRate of Tax (R)
Companies27% of taxable income

Income Tax – Small Business Corporations

Taxable Income (R)Rate of Tax (R)
1 – 95 7500% of taxable income
95 751 – 365 0007% of taxable income above 95 750
365 001 – 550 00018 848 + 21% of taxable income above 365 000
550 001 and above57 698 + 27% of the amount above 550 000

Solar Tax Incentive

Individuals will be able to claim a rebate to the value of 25% of the cost of new and unused solar photovoltaic (PV) panels, up to a maximum of R15 000 per individual as of 1 March 2023.

Companies will qualify for a 125% tax deduction on qualifying investment costs for a 2-year window period. There will be no limit to the qualifying cost of such investments. This means that businesses will qualify for a cost plus 25% allowance on the cost incurred on renewable projects in the year it was incurred.