Herewith are the highlights:

Tax matters

Tax is always a matter of discussion and, unfortunately, a jargon-filled language that not everyone speaks. Contact Taxability to get better acquainted and make sense of your tax situation, especially regarding tax tables, rebates and thresholds.

1. Medical rebates

A Medical Tax Rebate or Medical Tax Credit (MTC) applies to the fees you pay for yourself and your dependents to a registered medical scheme in South Africa. The monthly amount is fixed and will vary according to the number of dependents. The Minister announced an increase from R347 to R364 for the first two members and R234 to R246 for all subsequent members.

2. Expansion of the renewable energy tax incentive

Tax incentives for renewable energy include solar panel rebates for businesses. From now on, companies can claim a 125% deduction in the first year for all renewable energy projects with no thresholds on generation capacity. This incentive will be available for investments brought into use for the first time between 1 March 2023 and 28 February 2025, and the deduction will reduce the business’ tax liability.

3. Rooftop solar tax incentive

Individuals will be able to receive a tax rebate to the value of 25% of the cost of any new and unused solar panels under the following conditions:

• The solar panel must be purchased and installed at a private residence.
• A certificate of compliance for the installation must be issued between 1 March 2023 and 29 February 2024.
• The panel must be fixed and at least 275 watts per panel.

The rebate incentive is available for one year, applies to solar panels only, and does not include inverters or batteries. It can offset individual personal tax until the 2023/24 tax year for up to a maximum of R15 000 per individual.

4. Extension of the diesel fuel levy refund

The refund system is in place for farming, fishing, mining and forestry. However, due to the electricity crisis, a similar refund of the Road Accident Fund (RAF) levy for diesel-used manufacturing processes will be extended to the food manufacturers. It will take effect from 1 April 2023 and will be in place until 31 March 2025.

5. The two-pot retirement system is pushed to 1 March 2024

In his budget speech, the Minister of Finance announced that the proposed two-pot system will take effect on 1 March 2024, and not later as expected. This system allows members to save for retirement while allowing flexibility for short-term access to their retirement fund money for emergencies within set limitations.

Contact Taxability today and let us lend our services on all tax matters or for expert advice on accounting and consulting services related to new or expanding businesses.