Budget 2024: Govt looks to corporates to meet R15bn revenue shortfall

CAPE TOWN - While personal income tax brackets will remain the same, government is looking to corporates to meet its revenue shortfall of R15 billion.

Finance Minister Enoch Godongwana has on Wednesday announced plans to introduce global minimum tax rules for multi-national corporations that will see them pay a minimum of 15% in efforts to boost tax collection.

However, he said this would be partially offset by an investment incentive to produce electric vehicles.

Godongwana said that by not adjusting personal income tax brackets – government will raise additional revenue of R16.3 billion.

Medical tax credits as well as fuel levies will be unaffected this year. 

Government also hopes to raise money from taxing funds withdrawn under the new two-pot retirement system. 

But multi-national companies can be expected to face some tax changes.

“Multinational corporations with annual revenue exceeding 750 euros will be subject to an effective tax rate of at least 15 percent, regardless of where their profits are generated.”

Meanwhile, producers of electric and hydrogen-powered vehicles will be able to claim 150% of their investment in the first year from March 2026.