Annual Budget and Tax Update - Part 1 (2023)
Presenters : Diane Seccombe
Overview
The Annual Budget Speech remains one of the most anticipated events on the financial calendar. The Minister faces the continued challenges brought about by electricity constraints and their effect on the economy. While some sectors of the economy, tourism for example, are showing signs of a rapid post-Covid recovery, the issues of a stagnant economy, lack of investor confidence, high unemployment, and an ever-shrinking tax base remain. All these factors make it extremely difficult to ‘balance the budget.’ As taxes have a critical impact on taxpayers' profits and take-home pay, these announcements have an important impact on financial and business decisions.
Workshop video content
Diane Seccombe unpacks the tax proposals announced in the Budget Speech in a practical and comprehensible manner so that you can understand the proposals and their impact on business and personal finances.
Tax issues raised in the 2023 Budget Speech
- Expansion of the renewable energy tax incentive: Corporates.
- Rooftop solar tax incentive: Individuals.
- Extension diesel fuel levy refund.
- Incurral and accrual of variable remuneration.
- Cessation of residence, apportionment of interest exemption and capital gains tax annual exclusion.
- Retirement fund transfers (two-pot retirement systems).
- Remission of administrative non-compliance penalties.
- Distribution of contributed tax capital.
- Employment tax incentive.
- Transfer pricing: New interpretation note 127.
- Denial of deduction of expenses against interest income, removal of practice note 31.
- Limitations of assessed losses and mining capital expenditure.
- Value-added tax, review of rulings issued in terms of section 72.
- Tax administration amendments.
- Tax rates, including:
- Changes in normal tax rates and rebates, including the medical rebates.
Top frequently asked questions related to rooftop solar tax incentives:
- What if you installed solar panels before 1 March 2023?
- If the installation has been done but the certificate of compliance is still to be issued in March, would the rebate apply?
- If one has to take a loan from a bank to install solar, is the interest deductible (forming part of the “cost” factor on the purchase)?
- If married in community of property, can you claim up to R30k?
- What if you rent solar panels?
- Can an individual from home claim 12b as well as the rebate?
- Is there an incentive for body corporates?
- Can a business claim 125% for a grid tied system (stores energy) with the inverter and battery for office equipment with no solar panels? Or is it only for the energy producing systems?
Competencies Developed in this workshop video
- Updated with important and current changes in tax legislation introduced in the Budget Speech.
- Competent to advise clients about the impact of the latest tax amendments announced in the Budget Speech on their tax compliance and future planning opportunities.
- Able to train your staff to be prepared for implementing the latest tax amendments announced in the Budget Speech.
- Informed about topics to include in a client communique to alert you clients about the specific tax implications introduced in the Budget Speech.
- Competent to revise the tax planning strategy of clients for the 2023/2024 tax year.