News Category: Finance

Budget 2024: Your Tax Tables and Tax Calculator

Budget 2024: Your Tax Tables and Tax Calculator



Budget 2024: Personal Tax Hike, 'Sin' Tax Increase, and Global Corporate Tax Proposal Unveiled by SARS

Budget 2024 effectively brought an increase in personal income tax by not adjusting the tables for tax rates, rebates and medical tax credits, while also implementing substantial increases in ‘sin’ taxes and introducing a proposed global tax on multinational companies.  This selection of official SARS Tax Tables and other useful resources will help clarify your tax position for the new tax year. Then follow the link to Fin 24’s Budget Calculator (just follow the four-step process) to perform your own calculation.

INDIVIDUAL TAXPAYERS - TAX TABLES UNCHANGED

INDIVIDUAL & SPECIAL TRUST TAXES – 2025

Taxable Income (R) 

Rate of Tax (R)

1 – 237 100 

18% of taxable income

237 101 – 370 500

42 678 + 26% of taxable income above 237 100

370 501 – 512 800

77 362 + 31% of taxable income above 370 500

512 801 – 673 000

121 475 + 36% of taxable income above 512 800

673 001 – 857 900

179 147 + 39% of taxable income above 673 000

857 901 – 1 817 000

251 258 + 41% of taxable income above 857 900

1 817 001 and above

644 489 + 45% of taxable income above 1 817 000

 Source:  SARS

INDIVIDUAL TAX REBATES – 2025 

Type

2025

Primary

R17 235   

Secondary (65 and older)

R9 444

Tertiary (75 and older)

R3 145

 Source:  SARS

INDIVIDUAL TAX THRESHOLDS – 2025 

Age

2025

Under 65

R95 750

65 and older

R148 217

75 and older

R165 689

 Source:  SARS

BUSINESSES - CORPORATE TAX RATES - EXTENDED

CORPORATE TAXES

Type

Taxable Income (R) / Taxable Turnover (R)*/
Annual Revenue

Rate of Tax (R)

Companies – Income Tax

All

27% of taxable income

Small Business Corporations – Income Tax

1 – 95 750

0% of taxable income

Small Business Corporations – Income Tax

95 751 – 365 000

7% of taxable income above 95 750

Small Business Corporations – Income Tax

365 001 – 550 000

18 848 + 21% of taxable income above 365 000

Small Business Corporations – Income Tax

550 001 and above

57 698 + 27% of the amount above 550 000

Micro Businesses – Turnover Tax

1 – 335 000*

0% of taxable turnover

Micro Businesses – Turnover Tax

335 001 – 500 000*

1% of taxable turnover above 335 000

Micro Businesses – Turnover Tax

500 001 – 750 000*

1 650 + 2% of taxable turnover above 500 000

Micro Businesses – Turnover Tax

750 001 and above*

6 650 + 3% of taxable turnover above 750 000

* New Multinational Corporations – Global Minimum Corporate Tax

Annual revenue exceeding €750 million

Minimum 15%

 Sources:  SARS’ Budget Tax Guide 2024; Budget Speech 2024

sin taxes increased

EXCISE DUTIES

Excise duties on 

2024 Increases

2023 Increases

Malt beer

14c per 340ml can

10c per 340ml can

Unfortified wine

28c per 750ml bottle

18c per 750ml bottle

Fortified wine

47c per 750ml bottle

31c per 750ml bottle

Sparkling wine

89c per 750ml bottle

9c per 750ml bottle

Ciders and alcoholic fruit beverages

14c per 340ml can

10c per 340ml can

Spirits

R5.53 per 750ml bottle

R3.90 per 750ml bottle

Cigarettes

97c per packet of 20

98c per packet of 20

Nicotine, non-nicotine solution for electronic delivery systems

14c per ml

–

Cigarette tobacco

R1.09 per 50g

R1.10 per 50g

Pipe tobacco

57c per 25g

33c per 25g

Cigars

R9.51 per 23g

R5.47 per 23g

 Sources:  Budget 2024 People’s Guide

HOW MUCH WILL YOU BE PAYING IN INCOME, PETROL AND SIN TAXES?

Use Fin 24’s four-step Budget Calculator here to find out the monthly and annual impact on your income tax, as well as what you will pay in future in terms of fuel and sin taxes, bearing in mind that the best way to fully understand the impact of the announcements in Budget 2024 on your own and your business affairs is to reach out to us for professional advice. 

Budget 2024: How It Affects You and Your Business

Budget 2024:  how it affects you and your business

“Our bigger challenge… is that our pie is not growing fast enough and this limits our ability to generate sufficient revenues to distribute among our priority areas.”

- Finance Minister Enoch Godongwana – Budget 2024

There were few surprises and little in the form of good news in Budget Speech 2024. Although there were no major tax proposals and no major tax rate hikes announced, individual taxpayers will bear the brunt of a R15 billion Budget shortfall, while multinational corporations will pay a global minimum corporate tax, and plans are afoot to tap into the SARB-administered contingency reserve account. 

Here is a brief overview of the most pertinent announcements for individuals and businesses that underscore
the need for professional tax advice in the year ahead.

Finance Minister Enoch Godongwana’s third Budget Speech in an election year contained few surprises, but also little in the form of good news, especially for South Africa’s personal income tax payers.

The Minister quoted dismal local average expected real GDP growth of 0.6% for 2023, which is projected to reach 1.6% between 2024 and 2026. This poor economic performance is ascribed to the persistent constraints in electricity supply and freight, rail and ports, as well as a high sovereign credit risk.  And the result? A sharp drop in tax revenue collection for 2023/24 which, at R1.73 trillion, is R56.1 billion lower than estimated! To make up the shortfall, Budget 2024 contains tax measures that will raise an additional R15 billion in 2024/2025, mainly through income tax raised by not adjusting personal tax brackets, rebates and medical tax credits for inflation, as well as above-inflation increases in alcohol and tobacco excise duties. 

Other main proposals included no increase to the general fuel levy for 2024/25, a global tax on multinational companies in South Africa with an annual revenue exceeding €750 million and the R150 billion withdrawal from SA’s Gold and Foreign Exchange Contingency Reserve Account. These announcements are briefly detailed below, along with some of the other announcements that will impact individuals and businesses.

budget proposals that will impact you

  • Addressing the Budget shortfall, personal income tax brackets are not adjusted for inflation – so individuals who received a salary increase this year are likely to pay more tax as they could fall into a higher tax bracket.
  • No inflation adjustments to the tax rebates.
  • Medical tax credits per month are not increased by inflation.
  • A one-year extension in the R350 Social Relief of Distress (SRD) grant and increases ranging from R20 to R100 per month in other social grants.
  • Above-inflation increases in the excise duties on alcohol and increases of between 4.7 and 8.2% on tobacco products. This means that the duty on:
      • a 340ml can of beer increases by 14c,
      • a 750ml bottle of wine goes up by 28c,
      • a 750ml bottle of fortified wine goes up by 47c,
      • a 750ml bottle of spirits will increase by R5.53,
      • a 23g cigar goes up by R9.51,
      • a pack of 20 cigarettes, rises by 97c,
      • vaping products increase to R3.04 per millilitre.
  • Two-pot retirement reform to be implemented on 1 September 2024, allowing individuals access to a portion of their retirement savings before their retirement date.

budget proposals that will impact your business

  • A global minimum corporate tax will be implemented from 1 January 2024, with multinational corporations with an annual revenue exceeding €750 million subject to an effective tax rate of at least 15%, regardless of where their profits are located. This will broaden the corporate tax base, enabling more tax revenue collection without increasing existing corporate taxes for local businesses. This new tax is expected to increase corporate tax collection by R8 billion in the 2026 tax year.
  • An increase in the limit for renewable energy projects that can qualify for the carbon offsets regime, from 15 megawatts to 30 megawatts.
  • An electrical and hydrogen-powered vehicle tax incentive introduced for manufacturers in 2026, enabling them to claim 150% of qualifying investment spending.
  • An increase in the carbon tax from R159 to R190 per tonne of CO2 equivalent from 1 January 2024.

budget proposals that will impact all

  • The general fuel levy and the Road Accident Fund levy will not be increased this year, providing tax relief of R4 billion.
  • However, the carbon fuel levy will increase to 11c per litre for petrol and 14c per litre for diesel effective from 3 April 2024.
  • Plastic bag levy to increase to 32c per bag from 1 April 2024.
  • The R150 billion withdrawal from SA’s Gold and Foreign Exchange Contingency Reserve Account to pay down government debt.

how to best manage your taxes going forward?

In addition to the announcements detailed above, other technical amendments proposed in the Budget 2024 may also require professional tax advice.  Furthermore, as tax collection remains government’s main source of income, you would be well-advised to rely on our expertise and advice as we determine the impact of the Budget 2024 announcements on your tax affairs. 

TAX DEADLINES FOR MARCH 2024

  • 07 March – Monthly Pay-As-You-Earn (PAYE) submissions and payments
  • 25 March – Value-Added Tax (VAT) manual submissions and payments 
  • 27 March – Excise Duty payments
  • 28 March – End of the 2023/2024 Financial year, Value-Added Tax (VAT) electronic submissions and payments, & CIT Provisional payments where applicable

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