If you’re a student or recent graduate, tax reform can feel like a maze. The good news? Most of the new rules are aimed at making it easier for young professionals to keep more of their earnings. Let’s break down what’s happening right now and why it matters to you.
Internships in South Africa often come with modest stipends, but new tax thresholds mean many interns won’t pay any income tax at all. The government raised the personal tax‑free allowance from R87 000 to R100 000 this year. That extra R13 000 can turn a stipend of R8 000 per month into fully untaxed cash in your pocket.
First, the corporate tax rate for small businesses dropped from 28% to 26%, encouraging startups to hire more young talent. Second, value‑added tax (VAT) on digital services was reduced, which means cheaper online courses and e‑learning platforms—perfect for sharpening your resume.
Third, the new capital gains exemption now covers up to R50 000 of profit from selling assets like crypto or stocks. If you’ve started investing early, that extra room can boost your savings without a tax hit.
Finally, there’s a fresh “Youth Employment Credit” that gives companies a rebate for each full‑time employee under 30. This incentive is pushing firms to create more entry‑level roles, so keep an eye on job boards for positions that mention the credit.
All these tweaks are designed to get money flowing into young hands and make it easier to start building a financial future. It’s not just about lower taxes; it’s about creating opportunities that line up with your career goals.
How can you take advantage? Start by checking whether your stipend or part‑time salary falls below the new R100 000 threshold. If it does, file a simple tax return to claim any refundable credits. Even if you’re just earning a bit of freelance income, registering as a provisional taxpayer now will save you headaches later.
Also, look for employers who highlight “tax‑efficient benefits” in their job ads—things like meal allowances or transport vouchers that are now tax‑free under the reform.
Remember, tax laws can shift each financial year. Staying updated through reliable sources—like our blog’s finance section—or signing up for a short newsletter can keep you ahead of the curve without drowning in jargon.
Bottom line: the recent tax reform is a win for anyone starting out. Higher allowances, lower corporate rates, and new credits mean more cash stays with you, and more companies are motivated to hire fresh talent. Use these changes to negotiate better terms, plan smart savings, and boost your career momentum.
Got questions about how the reforms impact your specific situation? Drop a comment below or reach out through our contact page—we’re here to help you make sense of tax talk without the headaches.
President Bola Tinubu's tax reform bills have sparked controversy, especially in the northern regions, raising fears of imminent economic distress. Northern leaders argue the reforms could destabilize their economy, prompting a demand for further discussion. The Civil Society highlights the need for transparency and equity. As the Senate advances the bills, debate continues over their potential impact.