South Africa

South Africa

Reduces the corporate income tax rate and increases employment tax benefits

23 Feb 2022

According to the Budget Speech for 2022 / 2023, which was delivered by the Minister of Finance on 23 February 2022, the corporate income tax rate will be reduced to 27% (from 28%), for companies with years of assessment ending on or after 31 March 2023. The reduction will be funded by limiting the interest deduction and assessed losses. Also, the Employment Tax Incentive will be increased by 50% to R1,500.To address abuse of such incentives, the Government proposes to impose understatement penalties on reimbursements that are improperly claimed.

Nature of measure:
  • Incentives
Type:
  • Treatment and operation (Other)
Industry:
  • Not industry specific
Inward FDI:
No
Outward FDI:
No
Sources: