On 23 February 2022, the Finance Minister Enoch Godongwana delivered his maiden Budget Speech and deliver he did!
The Budget includes R5.2 billion in tax relief proposals. The most relevant ones are highlighted below.
- The corporate income tax rate to be cut from 28% to 27% for companies with years of assessment ending on or after 31 March 2023.
- Personal income tax brackets and rebates to be adjusted in line with inflation. The annual tax threshold has increased to R91 250 for taxpayers under the age of 65.
- Medical tax credits will increase to R347 for the first two members and R234 for additional members.
- The employment tax incentive to be increased by 50% to a maximum monthly value of R1 500.
Further, a new bounce back scheme to support SME's will be launched in March to facilitate small business loan guarantees of R15 billion through participating banks and development finance institutions. A business equity-linked loan guarantee supporting mechanism will also be introduced by April.
The above comes as a welcome relief to all taxpayers and SME's. Well done!