The following is news flash 2024/11 published by the PAGSA on February 27, 2024 regarding Budget 2024L Highlights and useful links

BUDGET 2024: HIGHLIGHTS AND USEFUL LINKS FOR PAYROLLS

The Minister of Finance presented the 2024 Budget Review in Parliament on 21 February 2024.

The following information is applicable to the 2025 Tax Year

The following documents and information are now available on the SARS website:
• 2025 Tax tables: https://www.sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/ (no changes from previous year)
• Medical fees tax credit: https://www.sars.gov.za/tax-rates/medical-tax-credit-rates/ (no changes from previous year)
• Budget Tax Guide: https://www.sars.gov.za/wp-content/uploads/Budget-tax-guide-2024-_.pdf
• Budget documents: https://www.treasury.gov.za/documents/national%20budget/2024/default.aspx
Statutory Rates of Tax: 2025 Year of Assessment (1 March 2024 — 28 February 2025)

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 2024. (No changes from previous year).

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 2024 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 2024/25 can be access via the following link:
https://www.sars.gov.za/legal-lsec-it-gn-2024-003-budget-2024-rates-per-kilometre-vehicle-1-march-2024/

The prescribed rate per kilometer has been increased from R4,64 per km to R4,84 per km for the 2025 Tax year. In the 2024 tax year the rate per kilometer was R4.64 per kilometer. 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:
• R548 per day for meals and incidental costs
• R169 for each day for incidental costs only
https://www.sars.gov.za/legal-lsec-it-gn-2024-002-budget-2024-notice-subsistence-allowance-rates-overnightallowance-1-march-2024/

The daily amount for daily business trip reimbursements (not away from home for a night) is:
• R169.
https://www.sars.gov.za/legal-lsec-it-gn-2024-001-budget-2024-notice-subsistence-allowance-rates-dayallowance-1-march-2024/

Regards,
Rhona van Taak