Keeping up with legislative changes around business operations is no easy feat. Every new Budget Speech – to a greater or lesser extent – presents a shifting goal post in the quest for compliance and uninterrupted business operations, and PaySpace has built its reputation on helping our clients achieve it, quickly and easily.
PaySpace clients can rest assured that our software and service offerings have been updated in accordance with all new requirements for 2019/2020 period (effective from 1 March 2019), enabling our customers to continue to focus on growing their operations while we take care of the details around Payroll and HR. Our 100% cloud-based software delivery ensures that functions are updated immediately to reflect changing legislation – not only in South Africa but in over 40 different countries around the world.
In Finance Minister Tito Mboweni’s maiden 2019 Budget Speech, delivered on Wednesday, 20 February, a number of proposed changes were outlined which may affect businesses and investors.
This year’s budget speech is all about restoring public and investor confidence and therefore revolves around increasing the efficiency of tax collection and revenue generation, rather than increases to VAT (as in last year’s Budget) or income tax. To limit negative impact on an already sluggish rate of economic growth, income taxes will not be increased in any of the tax brackets.
Here are a few other highlights for businesses to take note of:
- Personal income tax remains unchanged in all brackets, with the tax-free threshold increasing slightly.
- Medical tax credits remain unchanged.
- Increases in fuel and carbon tax are to come into effect, with the aim of raising an additional R1.3 billion.
- Alcohol and tobacco excise duties will increase with the aim of raising an additional R1 billion.
- Additional items are to be added to the VAT zero-rated list from 1 April 2019, including white bread flour, cake flour and sanitary pads.
- Primary, secondary and tertiary rebates have all increased slightly.
For more details around the 2019 Budget Speech and how it will affect your business, we’ve put together a few resources from the National Treasury, summarising important highlights for easy reference.