2026 tax year in South Africa introduces several important changes that will impact both individuals and businesses. As a taxpayer, it’s crucial to stay informed about these updates to ensure compliance and optimise your financial planning. Understanding these shifts can help you avoid penalties, take advantage of available incentives, and streamline your tax obligations.
Key Tax Deadlines You Need to Know
- Provisional Tax: The first provisional tax payment deadline is 31 August 2025, with the second payment due by 28 February 2026.
- Personal Income Tax Returns: The tax filing season for individual taxpayers is expected to open in July 2025 and close in November 2025.
- Corporate Tax Submissions: Businesses must file their annual tax returns within 12 months of their financial year-end.
Staying ahead of this deadline is essential to maintain compliance and avoid penalties.
What’s Changing in 2025?
- Revised Personal Income Tax Brackets: Tax brackets are being adjusted to accommodate inflation. This means that lower-income earners could see some relief, while higher-income earners may experience adjusted tax obligations. Understanding how these changes affect your taxable income is essential.
- Potential VAT Increase:A VAT increase from 15% to 15.5% for the 2026 Tax Year (with discussions on a further 0.5% for the 2027 Tax Year) has been implemented, this could impact both consumers and businesses, making it essential to adjust your budget and pricing strategies accordingly.
- Enhanced SARS Compliance Measures: The South African Revenue Service (SARS) is intensifying its focus on tax compliance through advanced audit and tracking systems. This means stricter enforcement on tax evasion, unreported income, and incorrect filings. Ensuring your tax affairs are in order has never been more important.
- Expanded Small Business Tax Incentives: New tax relief measures for small businesses aim to encourage growth and sustainability. If you run a small business, understanding these benefits could help you reduce your tax liability and reinvest in your company.
- Retirement Fund Tax Adjustments: The ‘Two-Pot’ Retirement System’ is being introduced, allowing partial withdrawals while ensuring long-term savings security. Knowing how this impacts your retirement planning can help you make informed decisions.
How You Can Stay Ahead and Remain Compliant
- Stay Updated: Regularly check SARS announcements and updates to ensure you are aware of any new regulations or adjustments.
- Keep Your Records in Order: Maintain well-organised records of income, expenses, deductions, and supporting documents to make tax filing smoother.
- Leverage Digital Tools: Use SARS eFiling and cloud-based accounting software to manage your tax submissions more efficiently.
- Consult a Tax Professional: Tax laws can be complex, and any missteps could be costly. Seeking expert guidance can help you navigate the 2025 tax landscape effectively.
How We Can Help You
Navigating the ever-evolving tax environment can be overwhelming, but you don’t have to do it alone. Our team of experts is here to help you:
- Understand how the 2025 tax changes affect you or your business.
- Optimise your tax planning to minimise liabilities.
- Ensure compliance with SARS to avoid unnecessary penalties.
- Take full advantage of tax relief options and incentives.
Contact PATC Today
If you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.
If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.
Now read: Provisional Tax in South Africa
