Budget
Without taking away from the severity of the problems in this country – the budget speech on the 22nd of February 2023 was better and more encouraging than expected. There are no notable changes for you as a tax-payer, but there is a 10% increase in the tax-free lump sum on pension/RA withdrawals and a small tax rebate for individuals who install solar panels – this does not include inverters or batteries.
Greylisting
This is a term used in international finance and means the temporary imposing of restrictions on a country’s financial transactions. When a country is greylisted it means that there are concerns about its compliance with international standards on money laundering, terrorist financing, or other illicit financial activities.
Mr. Godongwana in his budget speech alluded to the fact that South Africa might be greylisted in the following few days – which we were This was imposed by the Financial Action Task Force (FATF). What this means for you is that when doing future financial transactions there will be more scrutiny involved with banks and financial institutions needing to provide more in-depth proof of source of funds etc.
It is a temporary measure and although it is not a positive development for the country it is not necessarily an insurmountable obstacle. With the right approach and reforms, a greylisted country can work to improve its financial oversight and prevent illicit activities which can ultimately benefit the country’s economy in the long run.
Medical Aid
Discovery medical aid has announced their plan increases effective 1 April 2023. For those of you that I manage your medical aid, I will be sending out the increases for each plan individually over the next few days.
Please feel free to reach out with any questions or discussion points.
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