South Africa's Budget for 2021 Presented in Parliament Including Proposal for Corporate Tax Rate Reduction

On 24 February 2021, the South African Minister of Finance presented the Budget for 2021 in parliament. As announced in the budget speech, the main tax proposals include:

• A reduction in the corporate income tax rate to 27% with effect from 1 April 2022, along with the broadening of the corporate income tax base by limiting interest deductions and assessed losses;
• An increase in the personal income tax brackets by 5% with effect from 1 March 2021, resulting in the following brackets rates:
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