Budget 2023

In Finance Minister Enoch Godongwana’s second budget speech some implications for investors were:

• Interest exemptions thresholds stay at R23 800 for those under 65 years of age and R34 500 for those over 65.
• Annual contribution limit for tax-free savings remains unchanged at R36 000 with the total contribution life time limit capped at R500 000.
• No change in Capital Gains Tax (CGT).   Individuals still have to include 40% of the gain in their income.  The overall maximum effective tax rates for individuals remains unchanged from last year at 18%.
• Tax rebate for individuals who install rooftop panels at their homes of 25% of the cost of the panels, up to a maximum of R15 000, for one year only.

Retirement:  Lump sum pay-outs and retirement deductions:

• The once-off tax free amount that can be withdrawn at retirement will increase from R500 000 to R550 000. 
• The tax deductibility of provident, pension and retirement annuity contributions remain the same, namely, 27.5% of taxable income, capped at an annual limit of R350 000.