In my latest podcast episode, I chat to tax expert Andre Bothma about the complexities of the South African tax system and how recent proposals could affect personal finances.

We also have a broader discussion about the current tax landscape and whether our legislation is keeping up with changes in the working environment, with so many more people opting to be self employed or have their own businesses.

In our discussion, we look at the current tax deductions available to individual taxpayers, noting that many options have diminished over the years, especially if you are formally employed.

The challenge lies in how our income tax system is structured, and what the implications of this are for middle-class taxpayers, many of whom may now find themselves falling into a higher tax bracket after a salary increase (because the tax tables have not been adjusted for inflation).

But we also clarify some common misconceptions about salary increases and tax brackets, and explain why a salary increase will still leave you with more money in your pocket, even if your tax rate has now increased.

We examine the idea of a wealth tax and explain that while many advocate for a new wealth tax, we already have mechanisms in place that function similarly, such as estate duty and capital gains tax which have not been adjusted for many years, resulting in a higher tax burden.

We tackle the emotional aspect of taxation, discussing how public sentiment is affected by perceptions of government corruption and inefficiency. This leads to a broader conversation about tax morality and the social contract between taxpayers and the government.

We argue that public trust will continue to erode without effective use of tax revenues, leading to increased scrutiny and frustration among South Africans.

Throughout the podcast, we encourage listeners to consider their financial decisions carefully. Andre offers practical advice on navigating salary increases and strategically approaching tax deductions.

We end off with a discussion on the future of taxation in South Africa, particularly for self-employed individuals and digital nomads, and highlight the need for our tax system to evolve alongside changing employment landscapes.

After listening to this episode, you should have a clearer understanding of your tax situation and be able to better explore some strategies for minimising your tax burden.