Minister Tito Mboweni walked the tightrope in delivering his Budget Speech 26 February 2020. In an effort to preserve the last remaining investment grade status he had to demonstrate to the ratings agencies that South Africa was applying appropriate measures of fiscal discipline in cutting expenditure and limiting the amounts allocated to underperforming SOEs, whilst not overburdening South Africans...
Here you will find Forvis Mazars tax experts' comments appearing in the media regarding National Treasury's 2020/2021 Budget.
South Africa is in critical need of a concrete plan from Treasury for the 2020/21 financial year if it is to overcome its existing economic challenges. Unfortunately, the 2020 Budget Speech, set to be presented by Minister of Finance Tito Mboweni on Wednesday, 26 February, is more likely be an exercise of balancing Treasury’s books, rather than presenting real solutions to the country.
The ability for employers and employees to structure their remuneration package to include a tax-free bursary or scholarship is one of the few mechanisms left to increase an employee’s take-home pay. Employees have been able to use their tax savings resulting from the tax-free bursary or scholarship to contribute to their own or children’s education and retirement savings.
Due to the change to the foreign employment exemption coming into effect on 1 March 2020, there has been a spurt of expats approaching both the South African Revenue Service (SARS) and the South African Reserve Bank (SARB) to formalise their permanent exit from South Africa, in order to not have to pay tax in South Africa on their foreign employment income.
On 26 February 2020 our Minister of Finance Tito Mboweni delivered the annual budget speech. South Africans, still recovering from the 62 days long January, listened anxiously, or waited for the articles the next day, if there will be any tax increases.
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