Finance Minister Tito Mboweni delivered the budget speech on Wednesday the 26th of February 2020. Given everything that has transpired since then, it certainly feels like a lifetime ago. However, we are already in the second month of the 2021 tax year.
As a recap, some of the changes which stood out in particular were as follows:
- Personal income tax brackets received above inflation adjustments.
- The annual contribution limits to tax free savings accounts increased to R36 000 per annum.
- The Transfer Duty exemption on the purchase of property increased to R1 million.
- Foreign remuneration exemption earned by South African tax residents was increased to R1.25 million.
- The Fuel Levy increased by 16 cents per litre on 1 April 2020.
- Increase on the excise duties of alcohol and tobacco (between 4.4% and 7.5%)
- The levy on plastic bags increased to 25 cents per bag.
Please see the Budget Tax Guide for the 2021 tax year as published by SARS. It’s a concise 19 page booklet which is great to have saved (you could also bookmark the page) and on hand throughout the year.