Surviving Trust Tax Season 2025 – And Beyond

“Trustees remain accountable for all tax matters of a trust, regardless of the economic activity of the trust.” (SARS)

The official trust filing season for the 2025 year of assessment is now open for both provisional and non-provisional taxpayers – and SARS has issued stern warnings to trustees to fulfil their tax obligations.

Who must file trust tax returns?

A trust is included under the definition of a “person” in terms of the ITA (Income Tax Act no.58 of 1962) and is therefore regarded as a taxpayer.

All South African trusts, including resident and non-resident trusts, that are registered for income tax, must file a tax return annually, even if the trust is not economically active.

A trustee is the representative taxpayer of a trust. Trustees or representatives must register the trust for income tax and file the required tax returns annually. Alternatively, a registered tax practitioner can be appointed as the representative taxpayer.

What must be done?

Taking into account recent changes to the legislation, trustees must submit their returns for the 2025 year of assessment and file the mandatory supporting documents listed further below.

Recent legislative changes

The “flow-through” principle is now limited to resident beneficiaries, so all amounts vested to non-resident beneficiaries are taxable in the hands of the trust. This also affects the submission requirements for provisional tax (IRP6).
Foreign tax credits for taxes paid on income or capital gains earned in a foreign jurisdiction can now be used to prevent double taxation.
From the 2025 tax year onwards, unused foreign tax credits will be carried forward automatically to the subsequent years of assessment, up to a maximum of six years.
The Section 12H Learnership Agreement is extended to 31 March 2027.
The definition of a trust is updated to include collective investment scheme portfolios.
SARS has issued new rules on how losses relating to distributions are limited under section 25B.

Return submissions

The final deadline for the submission of provisional and non-provisional Trust Income Tax Returns (ITR12Ts) is 19 January 2026.

Mandatory supporting documents

Required Documents	Details
Trust instrument	Latest deed or will
Certain transactions and financial flows	Income sources and distribution of income; proof of any tax credits
Financial information	Financial Statements/Annual Administration Account
Parties connected to a trust	Beneficial-ownership document, including detail per entity listed
Other documents	Letters of Authority and Minutes and Resolutions of trustee meetings
Foreign trust document (if applicable)	Controlled Foreign Company (IT10)
Mining document (if applicable)	Mining Schedule A and B

Source: SARS

File on time!

Trustees and administrators should take note that all the return submissions and supporting documents are due by 19 January 2026 – just days into the new year.

Submitting within the deadlines is necessary to comply with SARS regulations. Late submissions can lead to administrative penalties, interest charges, and additional steps.

What else must be done?

Because a trust is also a provisional taxpayer, trustees should be aware that a trust is further required to submit provisional tax returns (IRP6) twice a year in August and February.

In addition, trustees are also required to submit an IT3(t) third-party data return that provides details of amounts vested to beneficiaries.

Finally, all income derived from a trust must be declared by any resident beneficiaries of trusts in their own income tax returns.

Looking ahead: Key tax dates for trusts

19 January 2026: Final deadline for provisional and non-provisional trust tax return (ITR12T) submissions.
28 February 2026: Second provisional tax payment for the 2026 assessment year.
31 August 2026: First provisional tax payment for the 2027 assessment year.
September 2026 (date TBC): Opening date for Income Tax Returns for Trusts (ITR12T) submissions for 2026.
30 September 2026: Deadline for IT3(t) return submissions for trusts which declare amounts vested to beneficiaries’ income.
30 September 2026: Top-up provisional tax payment for the 2027 assessment year.

Consequences of non-compliance

SARS takes a zero-tolerance approach to taxpayers who do not register for the applicable tax, file tax returns, declare income accurately, or pay their tax debt.

Non-compliance with these obligations is a criminal offence and will attract penalties and interest.

Surviving Trust Tax Season 2025 and beyond

Never fear! Our team is well experienced in keeping trusts compliant throughout the year. We don’t just contain costs and prevent hassles with the taxman, we also provide peace of mind.

If you need assistance meeting the next trust tax deadline on 19 January 2026, simply reach out to us. It’s the easiest way to survive this trust tax season, and those ahead.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

This Halloween, Stay Safe From eFiling Profile Hijackings

“Profile hijacking points to pervasive cybercrime with global links.” (Edward Kieswetter, SARS Commissioner)

The Tax Ombud has again warned South Africans about the concerning increase in eFiling profile hijackings, which has spurred the Office of the Tax Ombud (OTO) to launch a survey of taxpayers' experiences and a systemic investigation into SARS.

What is eFiling profile hijacking?

eFiling profile hijacking involves cybercriminals gaining unauthorised access to taxpayers' SARS eFiling accounts. Once inside, they change the security details and banking information, and submit fraudulent tax returns to redirect the refunds into their own accounts.

Methods such as SIM swaps and phishing are commonly employed to get access to taxpayers’ eFiling profiles. Using calls and fraudulent SARS text messages, emails and letters of demand, scammers pose as SARS officials or tax advisors, often pretending to want to assist taxpayers to get their SARS refunds.

Concerns have also been raised about possible internal fraud and insider involvement at SARS and certain banks.

SARS systemic investigation

While SARS acknowledges the rise in eFiling profile hijackings, it emphasises that although individual profiles have been compromised, the SARS system itself has not been breached.

SARS adds that additional security measures have been implemented and that it is collaborating with financial institutions and the OTO to combat the scourge of profile hijacking.

How to safeguard your eFiling profile

SARS has issued the following advice:

Avoid sharing your eFiling login details. SARS will never request OTPs, passwords or bank details via calls, emails or text messages.
Use strong and unique passwords and update them regularly.
Enable two-factor authentication for an additional layer of security.
Regularly check your eFiling profile and submitted returns for any unauthorised changes.
Verify your bank account on eFiling before a refund is paid, even if there hasn’t been a change to the banking details.
If you suspect your profile has been hijacked, change your login credentials promptly using another device, and report it immediately to SARS and to the SAPS as an identity theft case.

Rely on the expertise of a SARS registered tax practitioner such as ourselves.

How we help keep your eFiling profile safe

As your accounting and tax partner, we help you to keep your eFiling profile safe by, for example, keeping abreast of all the latest scams, validating the status of your tax affairs and any SARS enquiries or requests, and by using only official channels for interacting with SARS, especially when making payments.

If you are concerned about the security of your SARS eFiling profile, or if you have been contacted by anyone offering assistance with obtaining a SARS refund, contact us immediately.

We are the ally you need in the fight against profile hijacking.

Top Complaints Against SARS – And How We Help You Avoid Them

“He said that there was death and taxes, and taxes were worse, because at least death didn’t happen to you every year.” (Terry Pratchett)

In SARS jargon, a ‘systemic issue’ is the underlying cause of a complaint that affects many taxpayers. These systemic issues may have to do with the way SARS systems function, how SARS drafts and implements policies or procedures, or even how it applies or disregards legislative provisions.

Over the years, collaboration between the Office of the Tax Ombud (OTO) and SARS has reduced the number of systemic issues from more than 20 to seven.

7 systemic issues at SARS

Delays in payment of refunds.
Non-adherence to dispute resolution timeframes and rules under the Tax Administration Act (TAA).
Undue hardship caused to taxpayers resulting from the way the Tax Compliance System (TCS) is designed.
Failure to respond to requests for deferred payment arrangements within the prescribed turnaround time (21 days).
Failure to respond to requests for a compromise within the prescribed turnaround time (90 days).
Failure to respond to requests for a suspension of payment within the prescribed turnaround time (30 business days).
Repeat verification for reduced assessments or for cases with the same risk and supporting documentation.

How do systemic issues affect my business?

Delayed refunds – especially VAT and diesel refunds – create massive cash flow challenges for companies, inhibiting growth and increasing the risk of business failure, especially for small businesses.

Similarly, the design of SARS’ Tax Compliance System has resulted in companies losing contracts or tenders, or not being paid by corporate or government clients. This is because the system may flag a company as non-compliant where payment arrangements or suspension of debt agreements are in place. The system also reflects non-compliance for immaterial transgressions – including, for example, minimal debt amounts such as R1 and outstanding returns or payments for which arrangements have been made with SARS; or even fraud committed by SARS or ex-SARS officials.

SARS’ non-adherence to dispute resolution timeframes and rules, and its delayed response to requests for payment arrangements, not only infringe on taxpayer’s rights, but also expose taxpayers to prolonged periods of ‘non-compliance’, despite their efforts to become compliant.

Repeat verification cases cost time and money, adding a further unnecessary compliance burden on taxpayers.

How we protect your interests

While these systemic issues are being addressed by SARS, and monitored by the Tax Ombud, SARS suggests that taxpayers rely on the expertise of a registered tax practitioner. As your SARS-registered tax practitioner, we protect your interests and rights as a taxpayer in the following ways:

Careful compliance and excellent record-keeping are always the first line of defence when dealing with SARS – we help ensure that you have the correct processes in place to ensure both.
Our team of tax experts can professionally and correctly represent your business in the event of a tax dispute with SARS.
We understand the service levels and time frames outlined in the TAA and SARS’ Service Charter and we are experienced in using the official channels for complaints, including SARS’ Complaint Management Office.
We easily recognise systemic issues and can help you escalate these challenges directly to the Tax Ombud – the quickest and most effective way to deal with most complaints relating to systemic issues.
For other issues, after all avenues of recourse within SARS have been exhausted, we can assist your business to access the free and independent recourse offered by the OTO.
We can advise your business on obtaining tax risk insurance protection against SARS tax audits and related disputes.

You can count on us to ensure your dealings with SARS are as efficient and cost-effective as possible!

SARS’ Crypto Crackdown Intensifies with Dedicated Crypto Unit

“Transactions or speculation in crypto assets are subject to the general principles of South African tax law and taxed accordingly.” (SARS)

A staggering 5.8 million South Africans hold a crypto asset, with Southern Africa boasting the largest uptake of Bitcoin in the world.

SARS has not failed to notice the phenomenal growth of various digital currencies and crypto assets and is now dedicating substantial resources to ensure that crypto assets and trades are declared on taxpayers’ tax returns.

How are crypto assets taxed?

While crypto assets are not considered legal tender, transactions or speculation in crypto assets are subject to the general principles of South African tax law.

Normal income tax rules apply and affected taxpayers need to declare crypto assets’ income, and gains or losses in the tax year in which it is received or accrued.

Income from crypto assets transactions can be taxed under “gross income” or it can be seen as a capital gain (and subject to CGT). Whether an accrual or receipt is revenue or capital in nature is tested under existing tax law, of which there is plenty.

Taxpayers are also entitled to claim expenses associated with crypto assets accruals or receipts, provided such expenditure is incurred in the production of the taxpayer’s income and for purposes of trade.

Base cost adjustments can also be made according to the CGT rules. Gains or losses in relation to crypto assets can broadly be categorised with reference to three types of scenarios, each of which potentially gives rise to distinct tax consequences:

Crypto assets can be acquired through so called “mining” – the verification of transactions in a computer-generated public ledger through the solving of complex computer algorithms.
Investors can exchange local currency for a crypto asset (or vice versa) through crypto asset exchanges (which are essentially markets for crypto assets) or through private transactions.
Goods or services can be exchanged for crypto assets. Such transactions are regarded as barter transactions and the normal barter transaction tax rules apply.

The onus is on taxpayers to declare all income and gains related to crypto assets.

Stricter enforcement

SARS has intensified its focus on crypto asset trading recently, significantly improving its capacity to detect crypto activity and non-compliance. They have done this by:

Making greater use of advanced analytics, artificial intelligence, machine learning and algorithms
Entering into data-sharing arrangements with crypto exchanges
Establishing a dedicated Crypto Asset Unit

Since last year, SARS has been sending Audit and Request for Relevant Material Notices to taxpayers who have traded, invested or even used crypto assets for purchases.

This is possible because SARS now has access to trading data directly from crypto exchanges. This includes information on taxpayers who have traded in crypto assets but may not have disclosed these activities on their tax returns. In addition, through multilateral agreements, SARS is exchanging information with other tax authorities globally, in line with global tax enforcement trends.

What’s more, the establishment of SARS’ specialised Crypto Asset Unit is a clear indication that crypto asset taxation has become a priority.

What must I do?

Taxpayers engaged in crypto asset transactions should ensure their tax affairs in this respect are fully compliant. Failure to comply could result in audits and investigations; interest and penalties at percentages as high as 200%, as well as further legal repercussions.

The SARS Voluntary Disclosure Programme (VDP) provides an opportunity for taxpayers who have not declared their crypto holdings to achieve compliance and to avoid potential penalties and interest. However, the VDP has strict conditions, one of which is that the taxpayer must voluntarily approach SARS first, before SARS initiates further action. Once SARS has identified a taxpayer for audit, they can’t apply for the VDP.

How we protect your interests

Relying on accounting and tax expertise is essential for correctly assessing any historical crypto tax liability and possibly making voluntary disclosures, correctly declaring current crypto asset transactions, and ensuring compliance requirements are met proactively.

You can count on our experience and expertise in managing your crypto tax affairs!

The 2025 Tax Filing Season Opens on 7 July

“My sincere gratitude goes to the compliant taxpayers and traders who have continuously played their part in building our country. Ndza khenza.” (SARS Commissioner, Edward Kieswetter)

Tax Filing Season 2025 officially opens on 7 July this year. This covers the 2024/2025 year of assessment: the period between 1 March 2024 and 28 February 2025.

During filing season, taxpayers complete and submit their tax returns, declaring their income and deductions to allow SARS to determine their final tax liability for the period under assessment.

This year, for the first time, the majority of non-provisional taxpayers will be automatically assessed.

Dates to diarise

Auto assessed? Here’s what to do…

If you have been auto assessed, you will receive notification by SMS and/or email directly from SARS after 7 July. (Be sure to check with us that the notification you receive is legitimate!)
Access your auto assessed income tax return through any of SARS’ channels, such as the SARS MobiApp or SARS eFiling, to review and verify the completeness and accuracy of the information it contains. (Be sure to check with us if you are uncertain of any aspect of the auto assessment!)
If you are satisfied with the auto assessment, and there is money owing to SARS, it must be paid to SARS by the stipulated date. If there is a refund due to you, it will be paid directly to your bank account within 3 working days, if your details with SARS are correct.
If there is missing and/or inaccurate information on the auto assessed tax return, pertaining to either income or expenses which may affect the outcome of the auto assessment, it must be declared to SARS by submitting a ITR12 tax return by the 20 October 2025 deadline.

Not auto assessed? Here’s what to do…

Non-provisional taxpayers who are not auto assessed can start filing their tax returns from 21July 2025 until 20 October 2025.

Provisional taxpayers (certain individual taxpayers and all companies) as well as trusts can start filing returns from 21July 2025 until 19 January 2026.

Top tips to streamline your tax filing season

Verify all SARS communications received to protect yourself from scams.
Check that all taxpayer and banking details are correct and updated with SARS to facilitate refunds and prevent identity theft and fraud.
Prepare all required documentation early to avoid last-minute delays and to expedite a possible SARS verification or audit.
Claim every tax rebate available to you to avoid paying more tax than required.
Ensure that your tax return submissions comply with current regulations.
Be certain to meet the submission deadlines to avoid penalties.

Fortunately, our team of seasoned tax professionals is ready to ensure you tick all these boxes. Let’s make this filing season an easy one!

How Funding Budget 3.0 Will Impact You: Project AmaBillions

“We accept the responsibility to achieve the 2025/26 revenue estimate presented by the Finance Minister Mr Enoch Godongwana.” (SARS Commissioner Edward Kieswetter)

Removing the contentious proposed VAT increases from Budget 3.0 led to a shortfall in revenue that necessitated new revenue sources.

One of these is the inflation-linked fuel levy increases of 16c for petrol and 15c for diesel, which became effective on 4 June and will impact all individuals and entities in the country.

Another alternative revenue source is going to come from SARS’ upping its collection of outstanding tax debt – with Treasury expecting an additional R20 billion to R50 billion per year from intensified debt collection efforts.

The tax measures contained in Budget 3.0 will raise an additional R18bn in 2025/26. A further R20bn in as-yet-unknown tax measures are postponed to Budget 2026 – unless SARS collects an extra R35bn in outstanding taxes.

SARS has accepted the challenge and Budget 3.0 allocated a further R4 billion to SARS to fund the debt recovery. (In addition to the R3.5bn previously allocated to the cause.)

‘Project AmaBillions’?

In what the media refers to as “Project AmaBillions” and what SARS calls its “compliance programme”, an intensified effort will be made to collect a greater slice of the estimated R800 billion in unpaid taxes – the so-called “tax gap”.

SARS reported that just over R400 billion of the tax gap consists of undisputed uncollected debt. The rest is made up of a further R100 billion in debt currently under dispute, more than 54 million returns outstanding dating back several years, and 156,000 South Africans with substantial economic activity who are not registered taxpayers, or are not filing their tax returns. SARS says that it will focus on the undisputed debt, while accelerating work on collecting all debt by dutifully implementing its compliance programme.

In the last financial year SARS recruited and trained more than 800 new employees to collect debt, mainly via telephone calls and legal instruments. These efforts, says SARS, must result in a minimum collection of R20 billion.

To meet its revised revenue estimate this year, SARS is:

Closing the tax gap, with a focus on undisputed debt.
Broadening the tax base, targeting hard-to-tax sectors in the informal economy, particularly small enterprises and self-employed individuals.
Using advanced data analytics and artificial intelligence to detect tax-compliance risks and improve overall compliance rates.
Combating the illicit economy.

How does it affect me?

As SARS significantly steps up its revenue collection efforts, those eligible to pay tax – whether registered taxpayers or not – can expect less lenience and more SARS queries, verifications, audits and collection efforts.

In fact, the South African Institute of Chartered Accountants (SAICA) has been quoted in the media warning that the pressure on SARS to collect significantly more tax this year may result in “heavy-handedness” by SARS in its treatment of taxpayers.
SARS confirms that it upholds the rights of taxpayers to exercise their rights in law, which include among others, asking for payments to be deferred or paid in instalments, or to dispute the debt.

Taxpayers must also be wary of scams – the well-publicised increase in debt collection activity at SARS will be matched by an increase in financial scams by fraudsters pretending to be SARS employees or appointed debt collectors.

How we protect your interests

Even with SARS’ well-funded and intensified focus on compliance and debt collections, our specialist tax team will continue to ensure that your interests remain protected.

Our up-to-date tax expertise and best practices ensure you have clarity on your specific tax obligations, and that all these tax commitments are met accurately and timeously.

We can confirm the legitimacy of any SARS communications to protect you from scams and respond promptly and professionally to legitimate enquiries on your behalf. This includes swiftly rectifying any non-compliance issues, and handling demands for outstanding tax debts correctly.

We also monitor that SARS follows the correct legal processes - including adhering to timeframes and procedures in respect of assessments, refunds, dispute resolution, and instituting debt collection measures such as unauthorised bank account withdrawals - to ensure your taxpayer rights are respected.

As Project AmaBillions intensifies, you can count on us to have your back!

Tax Avoidance vs Tax Evasion: Toeing the Line

"The difference between tax avoidance and tax evasion is the thickness of a prison wall." (Denis Healey, former UK Chancellor of the Exchequer)

The line between tax avoidance and tax evasion can sometimes appear blurry, especially in complex transactions or fierce tax planning strategies. The comparison below is a good starting point:

What is tax avoidance?

Tax avoidance refers to legal arrangements or transactions designed to reduce or eliminate tax liability, without breaking the law.

Examples of tax avoidance include:

Moving a company into a special economic zone for the sole reason of achieving a lower corporate income tax rate.
Timing the sale of capital assets to control the timing of capital gains and losses.
Getting your company to pay for a motor vehicle or other expenditure as it may, depending on the circumstances, be taxed at a lower rate.
Placing a large amount of your income into a retirement fund to obtain the highest deduction possible.
Investing in tax-free savings accounts (this applies to individuals only).

Often termed “permissible tax planning”, tax avoidance is legal and accepted. However, when tax avoidance becomes overly aggressive or artificial (i.e., lacking commercial substance), it may cross into what tax authorities consider “impermissible” or “abusive” tax avoidance. This, while not necessarily criminal, may be challenged under anti-avoidance rules such as the General Anti-Avoidance Rule (GAAR).

South Africa employs GAAR to counteract tax avoidance strategies that exploit loopholes. These rules allow tax authorities to disregard or re-characterise transactions that have the primary purpose of avoiding tax.

What is tax evasion?

Tax evasion is characterised as the illegal act of deliberately and intentionally avoiding paying taxes, either by avoiding paying tax entirely, or by illegally reducing or deferring taxes payable. It can involve hiding or ignoring one's tax liability by making false representations or statements, or hiding income or information that would otherwise be subject to taxation.

Examples of tax evasion include:

Failing to file required tax returns
Making false statements on tax returns
Failing to declare income or deliberately underreporting income
Claiming personal expenses as business expenses
Over-declaring expenses, which may include falsifying invoices
Using multiple entities without legitimate business purpose
Moving money through multiple accounts to obscure its source

SARS uses data-driven insights, self-learning computers, and artificial intelligence to combat tax evasion, and is empowered to conduct criminal investigations into tax offences and work with the criminal justice system to prosecute offenders.

Tax evasion can result in severe penalties of up to 200% of the shortfall in tax, plus interest, and even jail sentences of five years or more.

Best practices for legal tax avoidance

Stay updated with ever-changing tax legislation to make informed decisions.
Structure your business operations or transactions in a manner that legally minimises taxes – for example, operating as a sole proprietorship or a private company have different tax implications.
Engage in permissible tax planning by adhering to all tax laws and regulations, and avoiding abusive tax schemes designed to exploit loopholes in the tax laws.
Utilise all tax deductions, credits, exemptions and incentives, including deductions for business expenses, tax credits for certain investments or activities.
Comply with reporting requirements and avoid penalties and interest by filing accurate tax returns on time.
Maintain accurate records of all your financial transactions and tax-related documents to ensure all claims and deductions can be substantiated when required by SARS.
Ensure transparency and full disclosure by always providing full and accurate information on tax returns: concealing information or providing misleading details can easily cross the line into tax evasion.

Best practice as a service

By adhering to these best practices, taxpayers can effectively employ tax avoidance strategies without crossing the line into the realm of tax evasion.

The best way to ensure all these best practices are implemented in your tax affairs is simply to work with our team of tax professionals. We are knowledgeable about the ever-changing tax laws and have the expertise and experience to provide tailored advice and solutions that keep you on the right side of the law while minimising your tax burden to the full extent permissible.

Budget 3.0: VAT Increase Out, Fuel Levy Hikes In

Last month’s Budget 3.0 withdrew the contentious proposed VAT changes. This resulted in inflation-linked fuel levy increases of 16c for petrol and 15c for diesel, from 4 June.

Other tax proposals from March’s Budget – including static personal tax thresholds, reduced transfer duties, and sin tax increases – remain unchanged.

The tax measures contained in Budget 3.0 will raise an additional R18bn in 2025/26. A further R20bn in tax measures are postponed to Budget 2026 – unless SARS collects an extra R35bn in uncollected taxes, for which Budget 3.0 allocated an additional R4bn in funding.

Mind The Tax Gap! Here’s How…

“In 2025/26, SARS will focus on addressing the tax gap to improve revenue collection.” (National Treasury Budget Review)

With additional funding from National Treasury, SARS will now be better positioned than ever to collect the estimated R800 billion in unpaid taxes which SARS Commissioner Edward Kieswetter has identified as a better alternative than a VAT hike to balance the South African Budget.

Much of the estimated R800 billion in unpaid taxes consists of the so-called “tax gap” – the difference between how much tax is legally due to SARS and the amount that is actually paid on time. SARS has reported the following:

Just over R400 billion in undisputed uncollected debt
Over R100 billion in debt currently under dispute
More than 54 million outstanding returns dating back several years
156,000 South Africans with substantial economic activity who are not registered taxpayers, or are not filing their tax returns.

The remainder of the R800 billion unpaid taxes is made up by “aggressive tax planning” such as base erosion, transfer pricing, and other means of tax evasion, as well as unpaid excise duties, unpaid VAT, and illicit trade flows.

Kieswetter said R2 billion of the additional R2.5 billion that SARS will receive for 2025/26 will be used for “a massive debt recovery programme”, while R500 million will be used to modernise SARS’ systems.

Given SARS’ enhanced capabilities and focus on collecting outstanding debt, our tax expertise will be crucial in ensuring you and your business maintain complete compliance and react immediately and correctly should your tax affairs become the subject of SARS’ scrutiny.

Tax compliance tick box

Maintaining compliance starts with:

✔ Being registered for all applicable tax types within the stipulated time frames
✔ Making accurate declarations
✔ Filing returns and other required documentation on time
✔ Paying the correct amount of tax on time
✔ Promptly responding to SARS communications
✔ Paying penalties and interest for non-compliance, such as late submissions or under-declared income.

How we can help you mind the tax gap

We can help you to comply with your specific tax obligations with up-to-date tax expertise and best practices.

We promptly and professionally respond to communications from SARS, such as notices of demand for unfiled returns, requests for information, or notifications of penalties levied.
We take immediate and correct action following demands for outstanding tax debts. Taxpayers have ten business days after receiving a Final Demand to either pay, arrange deferral of payment or make a payment arrangement, file a suspension of payment with an objection, or enter into a compromise agreement.

What’s more, our expertise and experience enable us to monitor that SARS is following the correct legal procedures. This ensures that your taxpayer rights are protected and preventing illegal collection measures such as unauthorised SARS withdrawals from bank accounts.

Bottom line

SARS says it will be relentless in its efforts to collect the billions of rands in uncollected taxes, and that it is ready to act against those who wilfully and defiantly ignore their legal tax obligations.

Similarly, we will be relentless in ensuring you maintain complete tax compliance in all your affairs. And we are ready to take the proper and timely action when SARS’ spotlight shines on your tax affairs.

Budget 2025: How It Affects You and Your Business

“… the economy needs to grow much faster and in an inclusive manner. This is the central objective of the current administration.” (Finance Minister Enoch Godongwana – Budget 2025)

The tabling of Finance Minister Enoch Godongwana’s fourth Budget in February was marked by an unprecedented three-week postponement, following a deadlock around the original Budget proposal to increase VAT by 2%.

A revised Budget, finally tabled on 12 March, proposed a 0.5% increase from 1 May 2025, with a second 0.5% VAT increase from 1 April 2026 – but the proposal was still not enough to satisfy most other political parties.

In his Budget Speech, the finance minister called the Budget proposals “a bold and pragmatic approach” to ensure the economy grows “much faster and in an inclusive manner”. He admitted that the economy has stagnated for over a decade, with GDP growth averaging less than 2%, while forecasts for medium-term GDP growth are a dismal 1.8%.

While the powers that be attempt to reach consensus on the Budget 2025 proposals, businesses and individuals in South Africa will find little support from the fiscus to survive these low-growth economic conditions.

This is evident from our overview below of the most pertinent Budget 2025 proposals. In a nutshell, the finance minister is trying to cover another substantial Budget shortfall by directly and indirectly increasing the tax burden on corporate and individual taxpayers.

Budget proposals that will impact you

The 0.5% VAT increases proposed for 2025 and 2026 will impact every South African, while disproportionately affecting lower-income households strained by high electricity costs, inflation and interest rates in a weak economy. To alleviate their impact on poor households, the list of zero-rated food items is extended to include canned vegetables, dairy liquid blends, and organ meats from sheep, poultry and other animals.
Personal income tax brackets will not be adjusted for inflation for a second year running. This means that, like last year, individuals who receive a salary increase will again pay more tax, and could be pushed into a higher tax bracket.
No inflation adjustments were proposed for tax rebates or medical tax credits – which once again translates into more tax payable by individuals.
Above-inflation increases in the excise duties on alcohol (6.75%) and tobacco (4.75 – 6.75%) are no surprise. This means that with immediate effect, the duty on:
- a 340ml can of beer increases by 16c
- a 750ml bottle of unfortified wine goes up by 29c
- a 750ml bottle of fortified wine goes up by 48c
- a 750ml bottle of spirits will increase by R5.97
- a 23g cigar goes up by R8.49
- a pack of 20 cigarettes rises by R1.04
- vaping products increase by 14c per millilitre.
Changes to the rules regarding the tax treatment of cross-border retirement funds are proposed.
A one-year extension in the R370 social relief of distress (SRD) grant and above-inflation increases ranging from R30 to R130 per month in other social grants will provide minimal relief to the poorest South African households.
SARS has been allocated R3.5 billion this year and an additional R4 billion over the medium term to enhance its tax collection capabilities, so taxpayers can expect increased scrutiny and administration.

Budget proposals that will impact your business

The 0.5% VAT increases proposed for 1 May 2025 and 1 April 2026 will certainly impact all companies in South Africa’s struggling economy, with a disproportionately negative impact on the small and micro businesses that are crucial to economic growth.

VAT hikes directly raise the cost of goods and services, impacting competitiveness and profitability.
Higher prices resulting from the VAT increase will reduce consumer purchasing power in an already-constrained economy.
The VAT increase could trigger inflationary pressures, further eroding household incomes and potentially forcing an interest rate hike.
Two VAT increases over two years will also result in a significant administrative burden on businesses to implement the required changes to their systems.
Carbon taxes increased from R190 to R236 per tonne on 1 January, while the temporary incentive for renewable energy introduced in 2023 has not been extended.
From 1 April 2025, the formula to calculate the employment tax incentive and the eligible income bands will be adjusted.
It is proposed that the sunset date for the urban development zone tax incentive be extended by five years to 31 March 2030.
The Budget proposes to cancel the inflationary increase in the health promotion levy, and that the ad valorem excise duties on smartphones are limited to higher value phones.

Some good news

The general fuel levy and the Road Accident Fund levy will not be increased again this year, providing tax relief of R4 billion. However, the carbon tax on fuel and diesel will increase. Budget 2025 also proposes an adjustment to the diesel refund for the primary sector for the next tax year.
Property buyers will benefit from an upward adjustment of 10% in transfer duty brackets from 1 April 2025.
A R1 trillion investment over the next three years in public infrastructure spending, focussed on transport and logistics, energy, and water and sanitation, should positively impact on the economy.
Besides the proposals detailed above, Budget 2025 made no mention of a wealth tax or the National Health Insurance (NHI).
In a media interview following the Budget Speech, the minister said that if the economy does well, the VAT increase in 2026 may not be necessary.

How best to manage your taxes going forward?

There is (at time of writing) uncertainty as to whether or not the Minister will proceed with his proposed tax changes – even if he fails to garner sufficient political support to ultimately ensure their adoption by parliament. If he does proceed, it’s equally unclear how long they will be valid for. Regardless, expect a lot of political manoeuvring and perhaps some major changes in the weeks ahead!

As tax collection remains government’s main source of income and SARS’ tax collection capabilities have been extended with billions in funding, you would be well-advised to rely on our expertise and advice to determine the impact of Budget 2025 on your tax affairs.

Budget 2025: Your Tax Tables and Tax Calculator

Budget 2025, if adopted by Parliament, will effectively bring about an increase in personal income tax by not adjusting the tables for tax rates, rebates and credits, while also implementing substantial increases in ‘sin’ taxes and introducing a 0.5% VAT increase on 1 May 2025 and another 0.5% increase effective 1 April 2026.

This selection of official SARS Tax Tables and other useful resources will help clarify your tax position for the new tax year.

Individual taxpayers: Tax tables unchanged since 2023

Source: SARS

Source: SARS

Source: SARS

Sin taxes raised

Source: Adapted from Budget 2025 People’s Guide

Businesses: Corporate tax rates unchanged

Source: Adapted from SARS Budget Tax Guide 2025

Proposed VAT increases

Source: Adapted from Budget 2025 People’s Guide

Transfer duty: 10% upward adjustment from 1 April

Source: SARS’ Budget Tax Guide 2025

How much will you be paying in income, petrol and sin taxes?

Use Fin 24’s four-step Budget Calculator here to find out the monthly and annual impact on your income tax, as well as what you will be paying in fuel and sin taxes.

Bear in mind, however, that the best way to fully understand the impact of the proposals in Budget 2025 on you and your business is to reach out to us for professional advice.

Why Use a Registered Tax Practitioner? Here’s What SARS Says…

"A tax professional is someone who solves a problem you didn't know you had in a way you don't understand." (Carl Ally, adapted from a quote about architects)

With tax compliance scrutiny intensifying and SARS increasing its detection capabilities with “the latest technology, artificial intelligence, and data science”, South African businesses face mounting pressure to keep their tax affairs 100% in order.

To achieve and maintain this compliance, the expertise of a tax practitioner is invaluable – provided you are using a correctly registered practitioner.

Do I even need a tax practitioner?

The specialised knowledge that registered tax practitioners offer greatly benefits businesses and individuals to navigate more complex tax matters, including:

multiple income streams
multiple tax obligations (income tax, VAT, PAYE, SDL, UIF)
optimisation of complex deductions
industry-specific tax considerations
capital gains calculations
strategic tax planning opportunities.

Businesses that attempt to navigate tax matters alone or with unregistered help face significant risks like:

missed opportunities for legitimate tax efficiency
exposure to penalties and interest charges for errors or oversights
increased likelihood of verifications and audits
reputational damage
potential criminal liability in cases of serious mistakes and omissions.

Using a registered tax practitioner can significantly reduce these risks, free up time to focus on your core business, and eliminate the stress of tax-related challenges.

Why must a tax practitioner be registered?

Section 240(1) of the Tax Administration Act mandates that anyone who provides tax advice or completes tax returns on behalf of others must be registered with both SARS and a Recognised Controlling Body, such as SAIPA, SAICA, SAIT or CIBA.

To provide clients with assurance that their tax affairs are in capable hands, these professional bodies impose stringent criteria on registered tax practitioners, ensuring they are:

qualified according to stringent industry-recognised criteria
up-to-date with current tax legislation and professional development
bound by professional codes of conduct or ethics
accountable to a professional regulatory body
able to provide recourse for substandard service or fraudulent activities
covered by Professional Indemnity insurance
supported by a technical support team for resolving complex tax issues.

More benefits of using a registered tax practitioner

Tax clarity and tailored tax advice: As SARS updates requirements and introduces new compliance measures, a registered practitioner can expertly advise your business in the evolving tax landscape.

Strategic advice on legitimate tax efficiency measures like tax planning and structuring, industry-specific tax opportunities for your business, and additional services to streamline tax compliance.

Critical protection is provided by ensuring accurate and compliant tax calculations and returns, maintaining documentation for potential audits, and proactively identifying and addressing potential compliance issues.

Direct representation during SARS engagements including lodging and managing disputes, and experienced negotiation capabilities.

Insurance cover: A registered tax practitioner carries Professional Indemnity insurance – providing an additional layer of protection should errors occur.

Maximise value from our tax team

As SARS intensifies its compliance efforts, the guidance and protection offered by our professional tax team will become increasingly valuable.

Employing a registered tax practitioner is about much more than meeting a compliance requirement – it's a strategic advantage that delivers expertise, protection, and peace of mind and helps secure your business's reputation and financial future.

How do I know if a Tax Practitioner is registered?

Ask them for their PR Number.
Visit SARS’ Tax Practitioner Verification Link.
Enter the PR Number to confirm ongoing registration.