Tag: Personal Income Tax (PIT)
Per diem tax guidelines – travel allowance compliance
A per diem (from the Latin for per day) is a daily stipend given to business travellers to cover food and incidental expenses while they’re on the road. It’s not, in fact, a perk to make up for the inconvenience of being away from home – or a little extra spending money to splurge on spoils and souvenirs.
Budget 2024 avoids direct tax increases
Minister of Finance Enoch Godongwana delivered his Budget Speech 2024 to Parliament and the nation on 21 February 2024. A key announcement was that tax rates will not be increased in 2024/2025, as previously signalled by the Medium-Term Budget Policy Statement (MTBPS) 2023, to generate the extra R15 billion needed in revenue.
Budget 2024 – mixed expectations in an election year
With the budget speech being delivered in an election year, I expect to hear populist promises and over-optimism which is geared more to voters than the financial markets. We will need to scrutinise the numbers coming out of the budget very carefully to see if Finance Minister Enoch Godongwana’s budget proposals are viable and achievable given the country’s high debt burden and strained tax base.
Budget 2024 – navigating uncertainty in challenging times
Minister of Finance Enoch Godongwana will deliver the 2024 Budget Review to Parliament next week as the South African economy faces a gloomy economic outlook. The economy is still recovering from the impact of COVID-19 and state capture.
The 2023 Budget – short terms gains not enough
On Wednesday afternoon, the Minister of Finance, Enoch Godongwana, had the unenviable task of delivering the annual Budget Speech. Over the last year, and especially over the last few months, South Africa has taken one knock after another.
The hypocrisy of dividend and personal income taxes
Taxes are never pleasant, but they can do a lot of good if used in the right way, such as providing access to education and healthcare for the poor through vouchers. Taxes can also do a lot of harm by dissuading savings and investments, which ultimately leads to less jobs and a reduced ability for people to take care of their own needs. This is especially the case when it comes to dividend withholding tax and personal income tax.
Rebuilding taxpayer confidence
Instilling trust in taxpayers is vital to increasing tax collection. The South African Revenue Service (SARS) has announced that the 2022 tax season will open in July; a condensed filing season compared to 2021, which was extended due to the long-tail impact of the pandemic.
Death, taxes, and remote working
Given the ever-changing landscape of the past two years, the adage that nothing is certain except death and taxes is perhaps more apposite than ever. Whilst it may appear that a semblance of normality is returning, its almost as certain as death and taxes, that remote working will be a part of the next normal.
The Budget Speech – a demonstration of the commitment to revive...
South Africa’s Minister of Finance, Mr. Enoch Godongwana, delivered his maiden National Budget Speech to the National Assembly on Wednesday, 23 February 2022. A crucial function of the Budget Speech is to provide details of spending and make proposals about how the priorities outlined in the President’s State of the Nation Address will be funded.
National Budget 2022 commentary
The National Budget was characterised by the balance between social welfare expenditure and fiscal sustainability amid a disappointing outlook for GDP growth in South Africa. The estimate for GDP growth for 2021 was reduced from 5.1% to 4.8% and forecasted to grow at 1.8% p.a. over the next three years.