Budget 2023: Highlights and Useful Links for Payrolls
The Minister of Finance presented the 2023 Budget Review in Parliament on 22 February 2023. The following documents and information are now available on the SARS website:
2024 Tax tables: https://www.sars.gov.za/tax-rates/employers/tax-deduction-tables/
Medical fees tax credit: https://www.sars.gov.za/tax-rates/medical-tax-credit-rates/
Budget Tax Guide: https://www.sars.gov.za/wp-content/uploads/Docs/Budget/2023/Budget-2023-Tax-Guide.pdf
Budget documents: https://www.sars.gov.za/about/sas-tax-and-customs-system/budget/
Statutory Rates of Tax: 2024 Year of Assessment (1 March 2023 — 28 February 2024)
The following tax rates, tax rebates and tax thresholds proposed by the Minister of Finance in his Budget speech come into effect on 1 March 2023. Statutory rates applicable to individuals
Taxable Income (R)
Rates of Tax (R)
0
—
237 100
18% of each R1
237 101
—
370 500
42 678
+
26%
of the amount above
237 100
370 501
—
512 800
77 362
+
31%
of the amount above
370 500
512 801
—
673 000
121 475
+
36%
of the amount above
512 800
673 001
—
857 900
179 147
+
39%
of the amount above
673 000
857 901
—
1 817 000
251 258
+
41%
of the amount above
857 900
1 817 001
and above
644 489
+
45%
of the amount above
1 817 000
Tax rebates applicable to individuals
Primary rebate R17 235
Secondary rebate (for persons 65 years and older) R9 444
Tertiary rebate (for person 75 years and older) R3 145
Tax thresholds applicable to individuals
Persons under 65 years R 95 750
Persons 65 to 74 years old R148 217
Persons 75 years and older R165 689
Medical Scheme Contribution Tax Credit
The medical scheme tax credits that will be effective from 1 March 2013 are:
R364 in respect of the taxpayer
R364 for the first dependent
R246 for each additional dependent
Rate per Kilometer
The “Cost scale Table” for 2023/24 can be access via the following link:
https://www.sars.gov.za/wp-content/uploads/Legal/SecLegis/Legal-LSec-IT-GN-2023-003-Budget-2023-Vehicle-cost-tables-3-March-2023.pdf
The prescribed rate per kilometer has been increased from R4,18 per km to R4,64 per km. This rate is applicable at the option of the recipient where no other form of compensation is received for business travel purposes. Subsistence Allowances and Advances
The daily amounts for overnight allowance in respect of travelling for business purposes (including at least one night away from home) in the Republic are:
R522 per day for meals and incidental costs
R161 for each day for incidental costs only
https://www.sars.gov.za/wp-content/uploads/Legal/SecLegis/Legal-LSec-IT-GN-2023-002-Budget-2023-Subsistence-Allowances-Rates-Day-Overnight-Allowance-3-March-2023.pdf
The daily amount for daily business trip reimbursements (not away from home for a night) is:
R161. https://www.sars.gov.za/wp-content/uploads/Legal/SecLegis/Legal-LSec-IT-GN-2023-001-Budget-2023-Subsistence-Allowances-Rates-Day-Allowance-3-March-2023.pdf
The Gazette Notice 268 GG 42258 which became effective on 1 March 2019 remains in force for daily expense amounts in respect of travelling outside the borders of the Republic:
Income Tax Notices 2023
The Budget 2023 proposals to change the employment related tax legislation will be issued in a PAGSA Newsflash shortly. Regards,
Rhona van Taak
Admin Manager Payroll Authors Group of South Africa
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