On the 21st of February, 2024, Finance Minister Enoch Godongwana delivered the annual Budget Speech. He faced intense scrutiny as he aimed to reconcile spending priorities with the limited resources available to the National Treasury. Highlighting themes of debt stabilisation, challenging budgeting choices, and fiscal constraints, making the speech one of the most significant since 1994, especially with upcoming elections on the horizon.
The key highlights:
- No inflationary adjustments to Personal Income Tax brackets, rebates, and tax thresholds
- Increase of between 6.7% and 7.2% in excise duties on alcoholic beverages
- Increase of between 4.7% and 8.2% in excise duties on tobacco products
- Introduction of new sin tax on nicotine and non-nicotine solution for electronic delivery systems
- Electrical and hydrogen-powered vehicle tax incentive to be introduced for manufacturers in 2026
- A global minimum corporate tax at 15% which applies to large multinational groups of companies to be implemented
The following documents have been provided to assist in understanding the key highlights for 2024/2025:
- Annual Budget Speech
- Compact Payroll Guide
- PAYE Calculator
- ETI Calculator
- Please also refer to the updated Tax Calculator on our website under the Resources tab.
Please click here to view the document providing insight into the changes affecting payroll for the 2024/2025 tax year
Impact of the South Africa Budget Speech 2024/2025 on PaySpace
- The travel reimbursive rate of R4.84 has been implemented on the system effective 01 March 2024.
- The March payroll will automatically recalculate, once the run is opened.
- No other statutory changes have been announced.
Should you have any questions regarding the South Africa Budget Speech 2024/2025, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected]
The PaySpace Team
