Budget 2023: Highlights and Useful Links for Payrolls

The Minister of Finance presented the 2023 Budget Review in Parliament on 22 February 2023. Here are the key highlights and useful links for payrolls:

1. 2024 Tax tables: The latest tax tables can be found at https://www.sars.gov.za/tax-rates/employers/tax-deduction-tables/. These tables provide the rates of tax applicable to individuals based on their taxable income.

2. Medical fees tax credit: Information on medical fees tax credits can be found at https://www.sars.gov.za/tax-rates/medical-tax-credit-rates/. This includes the tax credits for the taxpayer and their dependents.

3. Budget Tax Guide: The Budget Tax Guide for 2023 can be accessed at https://www.sars.gov.za/wp-content/uploads/Docs/Budget/2023/Budget-2023-Tax-Guide.pdf. This guide provides detailed information on the tax changes and updates for the year.

4. Budget documents: All the budget documents can be found at https://www.sars.gov.za/about/sas-tax-and-customs-system/budget/. These documents provide a comprehensive overview of the budget proposals and changes.

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 come into effect on 1 March 2023 and is applicable to the 2024 tax year:

– Statutory rates applicable to individuals: The rates of tax are based on the taxable income of individuals. The rates range from 18% to 45%. The specific rates can be found in the table provided.

– Tax rebates applicable to individuals: There are three tax rebates available for individuals. The primary rebate is R17,235, the secondary rebate for persons 65 years and older is R9,444, and the tertiary rebate for persons 75 years and older is R3,145.

– Tax thresholds applicable to individuals: The tax thresholds determine the income level at which individuals start paying tax. The thresholds vary based on age, with different thresholds for persons under 65 years, persons 65 to 74 years old, and persons 75 years and older.

Medical Scheme Contribution Tax Credit

The medical scheme tax credits for 2023 are as follows:

– R364 in respect of the taxpayer
– R364 for the first dependent
– R246 for each additional dependent

Rate per Kilometer

The prescribed rate per kilometer for business travel purposes has been increased to R4.64 per km. This rate applies when no other form of compensation is received for business travel. The full cost scale table can be accessed at 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.

Subsistence Allowances and Advances

For overnight business travel within the Republic, the daily amounts for allowances are as follows:

– R522 per day for meals and incidental costs
– R161 per day for incidental costs only

For daily business trips (not away from home for a night), the daily amount for reimbursements is R161.
The subusistence daily rates that were published can be accessed at 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

For daily expense amounts in respect of traveling outside the borders of the Republic, refer to Gazette Notice 268 GG 42258, which remains in force. This gazette can be accessed at https://www.sars.gov.za/legal-counsel/secondary-legislation/income-tax-notices/income-tax-notices-2023/

Budget 2023 proposals for employment-related tax legislation changes will be issued in a PAGSA Newsflash soon.

Disclaimer: All information provided by PAGSA is subject to our DISCLAIMER.