The purpose of the Budget 2026 Frequently Asked Questions is to give taxpayers and traders a comprehensive overview of the changes and translating it into clear and practical guidance.
Personal Income Tax
The 2026/27 tax brackets are adjusted 3.4% for inflation — the first inflationary relief since 2023/24:
- R0 – R245100: 18%
- R245101 – R383 100: R44 118 + 26% above R245 100
- R383101 – R530 200: R79 998 + 31% above R383 100
- R530201 – R695 800: R125 599 + 36% above R530 200
- R695801 – R887 000: R185 215 + 39% above R695 800
- R887001 – R1 878 600: R259 783 + 41% above R887 000
- R1878 601+: R666 339 + 45% above R1 878 600
Maximum marginal rate remains 45%. Trusts (other than special trusts): flat 45%.
Rebates: Primary: R17 820 (up from R17 235) · Secondary (age 65+): R9 765 (up from R9 444) · Tertiary (75+): R3 249 (up from R3 145)
Tax-free thresholds (you pay zero tax below these amounts): Under age 65: R99 000 (up from R95 750) · Age 65–74: R153 250 (up from R148 217) · Age 75+: R171 300 (up from R165 689)
The primary rebate adjustment saves a taxpayer under 65 years approximately R585 per year compared to 2025/26.
Medical scheme fees tax credit (MSFTC): R376/month for each of the first two persons covered (up from R364) · R254/month for each additional dependent (up from R246).
Additional medical expenses tax credit: 33.3% of qualifying out-of-pocket expenses for persons 65+ or with disabilities; 25% for others (limited to amount exceeding 7.5% of taxable income).
Budget 2026 also proposes extending eligibility to members of certain statutory medical schemes not currently registered under the Council for Medical Schemes.
Interest from a South African source is exempt from income tax up to: R23 800/year for persons under 65 years (and deceased estates) · R34 500/year for persons 65 and older. Note: interest earned inside a Tax-Free Savings Account (TFSA) is excluded from these limits — it is fully exempt regardless of amount.
Contributions to pension, provident, and retirement annuity funds are deductible at 27.5% of the greater of remuneration or taxable income, subject to an annual cap of R430 000 (increased from R350 000 — the first adjustment since 2016). Excess contributions carry forward to the next year of assessment and are not lost.
Where an employer reimburses an employee based on actual business kilometres travelled (not a fixed allowance), no PAYE is payable on amounts up to R4.95 per kilometre. A logbook is required. Where a fixed travel allowance is paid, 80% must be included in remuneration for PAYE purposes (reduced to 20% where at least 80% of vehicle use is for business). Full vehicle cost-tables with fixed-cost, fuel, and maintenance sections are specified in the Tax Guide.
For overnight domestic travel: R595/day deemed for meals and incidentals · R184/day for incidentals only. For part-day travel where the employee incurs actual meals/incidentals: the reimbursement is exempt up to R184. Foreign subsistence rates by country are published on sars.gov.za under Legal Counsel > Secondary Legislation > Income Tax Notices.
Donations tax: levied at 20% on cumulative donations not exceeding R30 million; 25% above R30 million. Annual exemptions: natural persons: R150 000/year (increased from R100 000 — first increase since 2007) Entities (non-natural persons): R20 000/year (increased from R10 000 — first increase since 2002).
Donations between spouses (resident recipient), between companies in the same SA group, and to approved public benefit organisations are exempt.
Employment Tax & PAYE Obligations
From the 202602-reconciliation period (year-end February 2026, annual EMP501 opens 1 April 2026), the inclusion of a valid Income Tax Reference Number (ITRN) on IRP5/IT3(a) certificates is mandatory for all employees required to register under Section 67 of the Income Tax Act. eFiling and e@syFile will reject the submission — no warning, no grace period — if any such employee lacks a valid ITRN. Employers must register employees immediately via ITREG or BundleReg on eFiling or e@syFile, or at a SARS branch by appointment.
The NMW increases to R30.23 per hour from 2 March 2026 (up from R28.79 — a 5% increase), as gazetted in Government Gazette No. 54075. This applies to all workers. Important: if any employee is paid below the NMW, the employer’s entire Employment Tax Incentive (ETI) claim is disqualified for that month — not just for that employee.
Based on established SARS patterns (final dates confirmed by Government Gazette): Annual EMP501 window: expected 1 April – 31 May 2026 · Issue IRP5 certificates to employees: within 60 days of year- end (~29 April 2026) · February 2026 EMP201: due by Friday 6 March 2026 (because 7 March is a Saturday). All submissions must be electronic via eFiling or e@syFile.
Skills Development Levy (SDL): 1% of total gross remuneration paid to employees. Employers with total annual remuneration less than R500 000 are exempt. UIF: 1% employee contribution + 1% employer contribution = 2% total, based on monthly remuneration, up to the UIF income-ceiling. Both are payable with the monthly EMP201 by the 7th of the following month (or last business day before if 7th falls on weekend/public holiday).
For the bursary/scholarship fringe-benefit exemption to apply, the employee must earn annual remuneration below the income ceiling. Updated thresholds from 2 March 2026: Income ceiling for all employees: R900 000 (up from R600 000) · Annual exempt amount for relatives’ primary/secondary education: R30 000 (R45 000 for persons with disabilities) · Annual exempt amount for relatives’ tertiary education: R90 000 (R130 000 for persons with disabilities). All amounts were increased for the first time since 2017.
The taxable value of an employer-owned vehicle remains 3.5% per month of the cash cost (VAT inclusive), or 3.25% if the vehicle was under a maintenance plan when acquired by the employer. 80% of this fringe benefit is included in remuneration for PAYE purposes, reducing to 20% where 80%+ of use is for business. On annual assessment, the fringe benefit is reduced by the business-use ratio (proven by logbook), and the employee can claim the full cost of license, insurance, maintenance, and fuel for private travel if fully borne by the employee.
Tax-Free Savings & Retirement
From 1 April 2026, the annual TFSA contribution limit increases to R46 000 (up from R36 000 — the largest single-year increase since TFSAs were introduced in 2015). The lifetime limit remains R500 000. All growth, interest, and dividends inside the account are completely exempt from income tax. Withdrawals are also tax- free. Warning: SARS levies a 40% penalty tax on excess contributions (contributions above the annual or lifetime limits). The limit applies in aggregate across all TFSAs held by the taxpayer.
Two-pot savings-component withdrawals are taxed at the member’s marginal income tax rate — NOT under the retirement lump sum tax tables. The fund processes a tax directive from SARS based on an estimated marginal rate. If the member has multiple income sources and the directive under-deducted, the shortfall will appear in their annual tax assessment (Auto Assessment issued ~21 July 2026). The shortfall is due by 20 October 2026; interest accrues on late payments. IRP5 source code for savings component withdrawals: 3926. Taxpayers who withdrew in 2025/26 should verify their total income against the applied directive rate.
Withdrawal benefits (before retirement, resignation, retrenchment): R0–R27 500: 0% · R27 501–R726 000: 18% above R27 500 · R726 001–R1 089 000: R125 730 + 27% above R726 000 · R1 089 001+: R223 740 + 36% above R1 089 000.
Retirement/severance benefits (death, retirement, reaching 55, redundancy): R0–R550 000: 0% · R550 001–R770 000: 18% above R550 000 · R770 001–R1 155 000: R39 600 + 27% above R770 000 · R1 155 001+: R143 550 + 36% above R1 155 000. All lump sums since 1 October 2007 aggregate cumulatively for rate determination. These tables are unchanged from 2024/25 to 2026/27.
A pensioner may commute (convert to cash) their entire living annuity if the value falls below R150 000 (increased from R125 000). The commuted amount is taxed under the retirement lump sum benefit table. The amount below which no annuity is required on retirement (“annuitisation de minimis threshold”) is R360 000 (up from R247 500).
Capital Gains Tax
Capital gains are included in taxable income at the inclusion rate (not the full gain). Maximum effective CGT rates: Individuals and special trusts: 18% · Companies: 21.6% · Other trusts: 36%.
Updated exclusions from 2 March 2026:
- Annual exclusion: R50000 gain or loss (up from R40 000 — first increase since 2017)
- Primary residence exclusion: R3000 000 gain (up from R2 000 000 — first increase since 2012)
- Death exclusion: R440000 (up from R300 000)
- Small business disposal (55+ years, market value ≤ R15million): R2 700 000 exclusion (up from R1 800 000)
Small-business market-value ceiling: R15 000 000 (up from R10 000 000)
For property: the CGT liability arises when the sale agreement is signed, not when transfer is registered at the Deeds Office. This means if you sign a sale agreement in February 2026, the gain falls in the 2025/26 tax year (ending 28 February 2026), even if transfer only occurs in May 2026. Plan sale timing accordingly.
Value Added Tax
Value Added Tax (VAT) Registration Threshold Increases
These frequently asked questions are issued based on the Minister’s Budget announcement on 25 February 2026 and subject to Parliament’s legislative process.
From 1 April 2026: The compulsory registration threshold applies when the total value of taxable supplies exceeds R2.3 million per annum (increased from R1 million). The voluntary registration threshold applies when the total value of taxable supplies exceeds R120 000 per annum (increased from R50 000). Certain exceptions apply.
No. Where the value of your taxable supplies in the preceding 12 months is less than R120 000, SARS will notify you of its intention to cancel your registration.
If you agree with the notification, SARS will cancel the VAT registration from a future tax period and inform you of your final tax period and your obligation to submit your last VAT return.
If you disagree with the notification, you have the right to object against the decision by completing a Notice of Objection (ADR1) form. You must provide written reasons for the objection and include a completed VAT registration application (VAT101) form and all supporting documents. The ADR1 and VAT101 forms are available here.
The completed ADR1 form, together with all supporting documents, must be emailed to [email protected] within 80 business days from the date of the notice. You will be informed of the outcome of your objection.
Yes. A person must continue to charge VAT on taxable supplies and declare and pay or claim a refund of the VAT by submitting VAT 201 returns.
No. You can, however, choose to cancel your VAT registration.
The steps to apply for cancellation are:
Complete a VAT123e – “Application for the Cancellation of Registration of a Person in Respect of All His Enterprises” form. Use the VAT123T to apply to cancel a separately registered enterprise.
You may send an e-mail with the cancellation request.
Make a virtual appointment through the SARS eBooking system by selecting the following options:
- Reason category: Other
- Reason appointment: VAT and PAYE registration/deregistration
The VAT123e cancellation form must be addressed to the SARS branch where the vendor is registered. The circumstances that give rise to the cancellation must be clearly stated on the form.
A vendor must continue to charge VAT on supplies made and account for output tax and deduct any input tax up to the last day of the final tax period advised by the Commissioner.
A person ceases to be a VAT vendor when its VAT registration is cancelled. As part of the cancellation process, that person must account for VAT on certain goods and rights retained when the registration is cancelled. This is commonly referred to as the deemed exit VAT.
Examples of goods include trading stock which is on-hand, and assets on which input tax was claimed. VAT must be accounted for using the lesser of the cost or the open market value of the goods and rights.
A person who exceeds the voluntary registration threshold, but not the compulsory registration threshold, must consider the financial implications of the deemed exit VAT; their customers’ preference to trade with VAT vendors; and their ability to claim input tax when considering deregistration. The person who ceases to be a VAT vendor must also assess the total value of taxable supplies likely to be made in the next 12 months to determine whether the compulsory threshold will be exceeded. You can do this by looking at supplies made in the previous 12 months. If, for example, you exceeded monthly taxable supplies of R191 667 and have no reason to believe that the situation will change, you are likely to continue to be liable to be registered under a compulsory registration.
Only enterprise assets must be taken into account. These include goods manufactured, constructed, or used; or rights acquired or used for making taxable supplies where input tax was deducted.
Assets used wholly for exempt or other non‑taxable activities are excluded. Examples are:
- Fixed assets (equipment, office furniture)
- Trading stock held at the deregistration date
- Any property used in your enterprise
The value of those assets and the output tax must be declared in fields 1A and 4A, respectively, of the VAT 201 return.
The cost includes VAT incurred on the acquisition, manufacture, construction, or production of the asset, as well as additional costs. In certain connected‑person transactions, the deemed open market value on acquisition may form part of the cost.
No. Goods or services on which input tax was denied, such as entertainment expenses and motor cars, are excluded. Donated goods or assets acquired for no consideration are also excluded, because the cost of such assets is regarded as zero.
SARS will raise assessments, and you will be liable for penalties and interest. You are encouraged to correct the errors. Further details are available on Request for Corrections.
You must account for output tax if you deducted input tax, but your supplier was not paid within 12 months at the time of cancellation of registration.
If you have already made this adjustment, there is no further obligation when you cancel your registration as a vendor (to the extent that VAT has already been accounted for).
Yes. Input tax or other deductions not previously made may be claimed in the final VAT return, provided you have the prescribed documentary proof when the return is submitted and the deduction is made within five years from the date you became entitled to such deduction. No deductions may be made after the final VAT return has been submitted.
SARS may backdate your registration to the date on which you became liable to register in accordance with the law. This may result in penalties and interest. You are encouraged to rectify your affairs by contacting the Voluntary Disclosure Unit. Further details are available on Voluntary Disclosure Programme.
You can pay the liability in six equal monthly instalments. (It is possible that a regulation may be issued to extend the period.)
Yes. You can register for VAT. The threshold for Turnover Tax will also increase to R2.3 million from 1 April 2026.
Corporate Tax, Small Business Corporations & Turnover Tax
The standard Corporate Income Tax (CIT) rate remains 27% for years of assessment ending 1 April 2026 to 31 March 2027. Budget 2026 announced no change. The CIT rate was reduced from 28% to 27% in 2022/23. Companies in approved Special Economic Zones may qualify for a reduced rate of 15%, subject to the applicable requirements. Budget 2026 proposes reforming the anti-avoidance rules governing Special Economic Zone qualification to allow more legitimate supply chain integration.
For years of assessment ending 1 April 2026 to 31 March 2027, the SBC tax rates are: R0 to R99 000: 0%; R99 001 to R365 000: 7% above R99 000; R365 001 to R550 000: R18 620 plus 21% above R365 000; R550 001 and above: R57 470 plus 27% above R550 000.
These rates apply only if the company qualifies as an SBC. SBC requirements state that all shareholders or members are natural persons, gross income is not more than R20 million, the entity is not a personal-services company, and it is not a holding company.
Turnover Tax is a separate tax regime for qualifying micro-businesses. The rates and thresholds for 2026/27 are adjusted as follows (in the first update since 2009):
- R0–R600000: 0% (previously R0–R335 000)
- R600001–R950 000: 1% above R600 000
- R950001–R1 400 000: R3 500 + 2% above R950 000
- R1400 001+: R12 500 + 3% above R1 400 000
Annual turnover limit for the regime: R2.3 million (up from R1 million). The restriction on tax year-end dates is removed, to make the regime more attractive to more businesses.
These interest rates apply across tax types, including CIT, VAT, PAYE, and Customs, unless a specific exception is stated. From 2 March 2026, SARS interest rates are: late or underpayment of tax: 10.25% per annum. Refund of overpaid provisional tax: 6.25% per annum. Refund after successful appeal or SARS concession: 10.25% per annum. Refund of VAT after the prescribed period: 10.25% per annum. Late payment of VAT: 10.25% per annum. Customs and excise: 10.25% per annum. Official rate for fringe benefit on interest-free or low-interest loans (from 1 December 2025): 7.75% per annum.
Turnover Tax is a simplified way of paying tax for micro or smaller businesses with a turnover of less than R2.3 million. It replaces Income Tax, VAT, Provisional Tax, Capital Gains Tax, and Dividends Tax for small businesses, meaning you pay a single tax, instead of multiple taxes.
Instead of complicated income-tax calculations, you pay a small amount based on total sales (turnover), not profit.
It is designed for businesses that:
- Are small with a low turnover (less than R2.3 million)
- Have simple records
- Want less paperwork
Registration for Turnover Tax is optional. Any micro or smaller business with an annual turnover of R2.3 million (effective 1 April 2026) or less can apply to register.
The following taxpayers may qualify:
- Individuals (sole proprietors) (e.g. spaza shop owner, taxi owner, etc.)
- Partnerships
- Close corporations
- Companies
- Cooperatives
Natural persons or companies that may be excluded from Turnover Tax:
- Businesses with turnover of more than R2.3 million.
- When more than 20% of total receipts come from rendering professional services (e.g. accounting, auditing, actuarial services, consulting and management services, etc.).
- Personal service providers and labour brokers.
- Businesses earning too much investment income (if more than 20% of total receipts come from investment, rental income, dividends, etc.).
- Companies with ineligible ownership structures (if any shareholder is not a natural person, or the business holds shares in an unlisted company.
- Businesses that previously opted out and were deregistered.
Register via the SARS website on the SARS Online Query System (SOQS).
The timing differs slightly for new registrations and existing registered businesses:
- New businesses: if a new micro-business starts trading during a year of assessment and wishes to register for Turnover Tax, an application must be sent within two months from the date that the business started.
- Existing businesses: existing micro-businesses can register for, or switch to, Turnover Tax before the start of a new tax year.
Turnover Tax is paid and reported based on your own tax year (year of assessment), not the calendar year.
Once your Turnover Tax year starts, you must:
- Make two payments during the year using the Payment Advice for Turnover Tax (TT02).
- The first payment is due six months after your tax year begins.
- The second payment is due at the end of your tax year.
- Submit your final return (TT03) after year-end.
- After your tax year ends, you must submit your Turnover Tax return (TT03), which SARS uses to calculate the final amount payable or refundable.
- For an individual, the submission of the TT03 Turnover Tax return is in line with the submission of the annual income tax returns.
- The amount of turnover to qualify for Turnover Tax increased from R1 million to R2.3 million per year (effective 1 April 2026). This means many more micro and smaller businesses now qualify to use Turnover Tax.
- VAT compulsory registration threshold increased to 3 million (from R1 million), effective 1 April 2026.
- The new Turnover Tax threshold applies from 1 April 2026.
- The new VAT threshold applies from 1 April 2026.
Yes. Turnover Tax and VAT are separate systems:
- You can be on Turnover Tax while also being VAT‑registered (if you choose to register voluntarily or you exceed the VAT threshold).
- Reduced administrative and compliance burden.
- Reduced tax rates, because tax is calculated on turnover instead of profit.
- Tax savings for qualifying small businesses.
Taxation of Crypto-Assets & Crypto-Asset Reporting Framework (CARF)
CARF took effect in South Africa on 2 March 2026. SARS has published the final Business Requirement Specifications (BRS) for CARF. Crypto-Asset Service Providers will be required to collect user information and transaction data and report it to SARS in an internationally aligned format. CARF is integrated with the enhanced Automatic Exchange of Information (AEOI) regime, creating a coordinated international data architecture. CARF is expected to increase SARS’s insight into crypto-asset activity over time. CARF is a reporting framework. It does not change how crypto-assets are taxed.
Crypto-assets are taxed as follows: If you trade frequently or in a business-like manner: gains are taxable as ordinary income at your marginal rate. If you hold crypto-assets as a long-term investment: gains are subject to Capital Gains Tax (maximum effective rate 18% for individuals). SARS determines classification based on frequency, intent, and business-like conduct. You must declare crypto-asset trading on your ITR12. The source code for income from crypto-trading is: 4522. All transactions — gains and losses — must be reported. Losses can be offset against other income (if trading) or carried forward (if CGT).
The VDP allows taxpayers with previously undeclared income (including crypto) to regularise their affairs with reduced penalties. VDP applications must be submitted before SARS initiates an audit, inquiry, or investigation regarding that taxpayer. Once SARS issues an audit notice, VDP is no longer available for that period. VDP benefits: 100% relief from understatement penalties (if there was no intention to evade), and interest remains payable. Apply via eFiling: VDP application portal. If you have undeclared crypto income or gains, consider using the VDP. CARF is expected to increase third-party reporting to SARS.
Tax Debt Management and Enforcement
On 31 January 2026: total outstanding tax debt: R646 billion; undisputed portion: R518.2 billion. SARS collected R79.4 billion against a target of R95 billion — a R15 billion shortfall, due to delayed onboarding of additional personnel, growth in disputed debt, and increased deferred-payment arrangements. SARS has deployed 1 500 new debt collectors, reducing overdue balances on payment plans from R14.6 billion to R6.8 billion. SARS is working more closely with banks and hiring additional legal professionals to pursue civil judgements. No additional revenue from debt collections is included in the 2026/27 fiscal framework.
Under Section 179 of the Tax Administration Act, SARS can issue a Third-Party Appointment (Form AA88) instructing any third party that holds money on behalf of the taxpayer, including banks, to pay the taxpayer’s debt directly to SARS. No court order is required. This typically follows a Letter of Final Demand if the debt remains unpaid. SARS can also issue AA88s against employers (for salary deductions) and debtors. Engaging proactively with SARS before an AA88 is issued is always preferable and leads to better outcomes.
The options below apply to all taxpayer types, including companies.
Four options:
- Payment Arrangement (Instalment Agreement): contact SARS to agree on affordable Apply via eFiling or call 0800 00 7277.
- Compromise of Debt: available where full payment would cause undue financial SARS may settle for less than the full amount.
- Suspension of Debt Collection: SARS must suspend collection of disputed debt while an objection or appeal is in progress, provided certain requirements are met.
- Voluntary Disclosure Programme (VDP): for undisclosed income contributing to the debt. Reduced penalties may apply.
Trusts with both 2024 and 2025 income tax returns outstanding now face administrative penalties from 2 March 2026.
Filing Season 2026 & Auto Assessments
With respect to when the filing season opens and to auto assessments, provisional, non-provisional and/or trust income tax submission deadlines, these dates will only be made known once the Commissioner has published the Annual Notice to submit tax returns, which Annual Notice will be published in the first half of 2026.
You are a provisional taxpayer if you earn income that is not remuneration (e.g. rental, business income, investment income), or remuneration from an unregistered employer. You are exempt if you carry on no business AND your taxable income will either: (a) not exceed the tax threshold (R99 000); or (b) consist only of interest/dividends/rental/foreign income not exceeding R30 000 in the 2026 tax year.
With regards to payment dates,: first period: 31 August 2025 · Second period: 28 February 2026 · Voluntary top-up (to avoid interest): 30 September 2026. Underestimation penalty: 20% if second estimate <80% of final taxable income; 10% for late payments.
For example, a Trust is a provisional taxpayer if:
- it receives or accrues taxable income during the year of assessment; and
- that income is not fully vested in beneficiaries during the same year of assessment in terms of section 25B of the Income Tax Act (the conduit-pipe principle).
Where all income is validly vested, the Trust may have no taxable income and therefore may not meet the definition of a provisional taxpayer for that year of assessment. However, where:
- income is retained in Trust; or
- income vests in non‑resident beneficiaries,
the Trust will have taxable income and will be a provisional taxpayer.
Global Minimum Tax (GMT) Pillar Two
South Africa enacted the Global Minimum Tax Act, 2024 and the Global Minimum Tax Administration Act, 2024, both effective 1 January 2024 and applying to fiscal years beginning on or after that date. The regime applies to Multinational Enterprise (MNE) Groups with consolidated revenue of at least €750 million (~R15 billion). Key rules: Income Inclusion Rule (IIR) — SA parent entities pay a top-up tax on foreign operations taxed below 15%; Domestic Minimum Top-up Tax (DMTT) — ensures SA-sourced income of foreign MNE groups is taxed at minimum 15%. Budget 2026 revised the estimated revenue from R8 billion to R2 billion in 2026/27 following updated OECD rule analysis.
- 16 March 2026: GloBE registration and notification functionality launches on SARS eFiling (rescheduled from December 2025)
- 30 April 2026: Extended deadline for notifying SARS of Designated Local Entity (DLE), Ultimate Parent Entity (UPE), or Designated Filing Entity (DFE)
- 30 June 2026: Extended deadline for submitting the first GloBE Information Return (GIR) — covering fiscal year 2024 (for groups with fiscal years ending before 31 December 2024)
- For groups with fiscal years ending 31 December 2024: GIR due 18 months after fiscal year end = 30 June 2026
- Subsequent GIRs: due 15 months after each fiscal year end
The Simplified ETR Safe Harbour can substantially the reduce compliance burden for lower-risk entities. The Transitional CbCR Safe Harbour is also available for qualifying groups.
Note: the Undertaxed Profits Rule (UTPR) is NOT included in South Africa’s legislation.
Fuel Levies, Carbon Tax & Excise Duties
From 1 January 2026 (already in effect): Carbon tax increased from R236/tonne to R308/tonne of CO₂ equivalent.
From 1 April 2026:
- General fuel levy: Petrol 10/litre (+9c) · Diesel R3.93/litre (+8c) — below inflation
- Carbon fuel levy: Petrol 19c/litre Diesel 23c/litre — above inflation (required by Carbon Tax Act)
- Road Accident Fund (RAF) levy: 25/litre (+7c for both petrol and diesel)
The combined increase across fuel levy + carbon fuel levy + RAF levy is in line with expected inflation. Budget 2026 projects R104 billion in fuel levy revenue for 2026/27.
Excise duties on alcohol and tobacco products increased by 3.4% from Budget Day (25 February 2026), in line with expected inflation. From the 2027 Budget, excise duty adjustments will take effect on 1 April each year. This change also applies to electronic nicotine and non-nicotine delivery systems (vaping). The health promotion levy (on sugary beverages) increased by approximately 3.4%.
Not yet — this is a proposal under consultation, not current law. National Treasury published a discussion paper in November 2025 proposing a national online-gambling tax of 20% on Gross Gambling Revenue (GGR), to operate alongside existing provincial taxes. South Africa’s gross gambling revenue reached R74.5 billion in 2024/25 — a 25.6% increase from the prior year. Sports betting GGR grew 390% over five years. The proposed tax could generate more than R10 billion. The public-comment period closed 27 February 2026. Treasury will host stakeholder workshops and release draft legislation for further public comment later in 2026. No start date has been announced.
International Tax, Offshore Allowances, & Expats
From 1 April 2026, the Single Discretionary Allowance doubles to R2 million per year (up from R1 million). Resident individuals can transfer up to R2 million offshore per calendar year without requiring a Tax Clearance Certificate from SARS. Married couples can therefore collectively transfer R4 million per year without a TCC. The Investment Allowance (requiring a Tax Clearance Certificate) remains at R10 million per year. This is widely considered one of the most significant exchange-control relaxations in recent years.
Non-resident withholding taxes: Dividends tax: 20% (may be reduced under a tax treaty) · Royalties: 15% (final tax on gross amount) · Interest: 15% (final tax; exempt if payable by SA government or bank, or if debt is listed on a recognised exchange) · Foreign entertainers/sportspersons: 15% (on gross amounts for SA activities) · Immovable property disposal: 7.5% (non-resident individual), 10% (non-resident company), 15% (non-resident trust). Transfer duty on property not subject to VAT: starts at 0% on first R1 210 000 of value; rises to 13% above R13 310 000.
South Africa participates in the Automatic Exchange of Information (AEOI) regime under the Common Reporting Standard (CRS). Offshore financial institutions in participating countries automatically report SA residents’ account balances, interest, dividends, and proceeds to their tax authority, which then automatically exchanges this data with SARS. From 2 March 2026, crypto-assets and foreign financial accounts are fully integrated into this coordinated international architecture via CARF. According to Tax Consulting SA, “The notion that offshore or digital activity exists beyond meaningful tax visibility is increasingly untenable”. The burden of proof lies with the taxpayer to substantiate income, capital gains, and their source.
