2020 Budget Review

2020 Budget Review

Written on 02/26/2020
MJ Minter Inc

“The Aloe Ferox survives and thrives when times are tough. It actually prefers less water. It wins even when it seems the odds are against it. "

Tito Mboweni



In a surprise move Minister Mboweni made no dramatic tax proposals to balance the books. In fact a number of proposals will actually reduce personal income tax, and, in the longer term, corporate taxes could be reduced.

The budget highlights are as follows:

  • Personal income tax
    • Relief through an above inflation increase in the brackets and rebates.
  • Medical tax credits
    • Increase in medical credits.
  • Foreign remuneration exemption
    • Exemption will be limited to R1.25m from 1 March 2020.
  • Corporate interest on debt
    • Deductions to be limited to combat base erosion and profit shifting.
  • Corporate assessed losses
    • Offset against taxable income limited to 80% of taxable income.
  • Fuel levy
    •  Increased by 25c/litre:
      •  16c/litre increase in the general fuel levy
      •  9c/litre increase in the RAF levy
  • Tax-free savings investments
    •  Annual contribution limit increased to R36 000.
  • Excise duties
    • Alcohol and tobacco duties increased by between 4.4 and 7.5 per cent.
  • Transfer duty
    •   Brackets will be adjusted for inflation from 1 March 2020.
  • Carbon tax
    • Rate will increase from R120 per tonne to R127.
  • Plastic Bag Levy
    • Proposal to raise the levy to 25 cents per bag effective 1 April 2020.

 

“With confidence we lay our case before the whole world, whether we win or die, freedom will rise in Africa, like the sun from the morning clouds”