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Die 2020 begrotingsrede in ’n neutedop
March 17, 2020

The 2020 Budget Speech in a nutshell

Kliek hier vir AFRIKAANS

Finance Minister Tito Mboweni delivered his second National Budget Speech on 26 February 2020. Taxpayers can breathe a little easier as he announced no major tax increases.

  • The personal income tax brackets and the primary, secondary and tertiary rebates will be increased by 5.2% for 2020/21, which is above the expected inflation of 4.4%.
  • Tax brackets for individuals for 2020 will be as follows:
Taxable income (R) Rates of tax (R)
1 – 205 900 18% of taxable income
205 901 – 321 600 37 062 + 26% of taxable income above 205 900
321 601 – 445 100 67 144 + 31% of taxable income above 321 600
445 101 – 584 200 105 429 + 36% of taxable income above 445 100
584 201 – 744 800 155 505 + 39% of taxable income above 584 200
744 801 – 1 577 300 218 139 + 41% of taxable income above 744 800
1 577 301 and above 559 464 + 45% of taxable income above 1 577 300

 

  • There will be an increase in the value of medical tax credits in 2020/21, rising from R310 to R319 per month for the first two beneficiaries, and from R209 to R215 per month for the remaining beneficiaries.
  • The annual limit on contributions to tax-free savings accounts will be increased from R33 000 to R36 000 from 1 March 2020.
  • The Government will increase the cap on the exemption of foreign remuneration earned by South African tax residents to R1.25 million per year, starting from
    1 March 2020.
  • To support the property market, the threshold for transfer duties has been adjusted. Property costing R1 million or less will no longer be subject to transfer duty.
  • Some of the indirect tax changes include:
    • Increasing the fuel levy by 25c/litre, consisting of a 16c/litre increase in the general fuel levy and a 9c/litre increase in the RAF levy; and
    • Increasing excise duties on alcohol and tobacco by between 4.4 and 7.5%.
  • The following rates remain unchanged:
    • VAT at 15%;
    • Corporate income tax at 28% and dividends withholding tax at 20%;
    • All inclusion rates for Capital Gains Tax; and
    • Interest and royalty withholding tax rates at 15%

This list is not comprehensive. You are welcome to download ASL’s electronic tax guide from our website.

Download the full summary HERE

View the visual highlights HERE