The Minister of Finance, Mr Enoch Godongwana, delivered the National RSA Budget Speech 2022 in Parliament on the 23rd of February 2022.
Given the revenue improvement, the government proposes R5.2 billion in tax relief to help support the economic recovery, provide some respite from fuel tax increases and boost incentives for youth employment. Most of the relief is provided through an adjustment in personal income tax brackets and rebates.
Click here for the RSA Budget Speech 2022.
Click here for RSA Budget Speech 2022 infographic.
RSA Budget Speech 2022 Highlights
Personal Income tax brackets 01 March 2022 – 28 February 2023:
|Lower Income Limit||Upper Income Limit||Income Threshold||Marginal Rate||Tax on Threshold|
|226 000.00||353 100.00||226 000.00||26%||40 680.00|
|353 100.00||488 700.00||353 100.00||31%||73 726.00|
|488 700.00||641 400.00||488 700.00||36%||115 762.00|
|641 400.00||817 600.00||641 400.00||39%||170 734.00|
|817 600.00||1 731 600.00||817 600.00||41%||239 452.00|
|1 731 600.00||999 999 999.99||1 731 600.00||45%||614 192.00|
|Secondary (Persons 65 and above)||9 000.00|
|Tertiary (Persons 75 and older)||2 997.00|
|Below 65||91 250.00|
|Age 65 to 75||141 250.00|
|Age 75 and over||157 900.00|
Medical Tax Credits 01 March 2022 – 28 February 2023:
|Medical Tax Credit|
|For the taxpayer, or for a dependent who is a member of a medical scheme or fund, where the taxpayer him or herself is not a member of a medical scheme or fund||347.00|
|For the taxpayer and one dependent, or in respect of two dependents where the taxpayer him or herself is not a member of a medical scheme or fund||694.00|
|For each additional dependent||234.00|
Impact of the RSA Budget Speech 2022 on PaySpace
- All changes have been implemented on the system effective for the 2022/2023 Tax year.
- The following additional changes can be anticipated to be rolled out during March:
- An expansion of the employment tax incentive, through a 50% increase in the maximum monthly value, to R1 500. Furthermore, the definitions of “employee” and “monthly remuneration” are amended to assist in curbing the ETI abuse.
- Extending the nature of awards provided in recognition of long service, to include a wide range of awards not only limited to the acquisition of non-cash assets.
- Reduction in the rate of tax to 27% for personal service providers where their year of assessment ends on any date on or after 31 March 2023.
Should you have any questions regarding this change, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected].
The PaySpace Team