Good news for taxpayers in South Africa

Proactive planning, better organisation, and early engagement with professionals can help taxpayers save money, improve efficiency, and stay comfortably ahead of SARS in 2026.

Tax Consulting SA senior tax consultants Rehnu Vallabh and Hlengiwe Mkhize explained that as South Africa moves into 2026, taxpayers can benefit significantly from taking a more proactive and organised approach to their tax affairs.

“Overall, taxpayers should approach 2026 with a forward-looking, compliance-focused mindset,” they said. “Proactive planning rather than reactive correction will be key to minimising risk and ensuring ongoing compliance.”

Taxpayers should bear in mind that while the 2025 individual filing season closed on 20 October 2025, provisional taxpayers and trusts still have the following deadlines to meet –

• 2025 provisional and non-provisional trust returns – 19 January 2026
• 2026 second provisional payment – 28 February 2026
• 2026 voluntary third payment – 30 September 2026.

According to Vallabh and Mkhize, there are several practical steps taxpayers can take to help ensure compliance, minimise risk, and seize tax-saving opportunities.

“SARS continues to strengthen its technology and verification systems. Therefore, proactive tax management is more important than ever,” they said.

They urged taxpayers to keep their supporting documents organised throughout the year and ensure that all income streams, both local and foreign, are captured correctly.

Filing returns within the submission deadline also ensures that taxpayers avoid last-minute errors, penalties, or missing documents.

For individuals working abroad, returning expatriates, and those with global assets, Vallabh and Mkhize noted that several key measures should be taken.

First, they should reconfirm whether you are legally a South African tax resident, since many taxpayers are surprised by the impact of ordinary residence compared to physical presence.

Those who receive foreign pensions, annuities, or investment income should also monitor upcoming legislative changes, such as proposals for taxing foreign pensions.

South Africans working abroad, returning expatriates, and those with global assets must also ensure foreign tax credits, exemptions, and double-tax agreements are applied correctly.

Staying ahead of SARS in 2026

Vallabh and Mkhize encouraged taxpayers to optimise their investments and retirement contributions. Before the year-end on 28 February 2026, they should –

• Maximise deductible retirement contributions where appropriate
• Review investment structures, such as trusts, companies, endowments, and offshore funds, to ensure they remain tax-efficient under evolving tax rules
• Reassess whether their capital gains profile can be improved through timing or restructuring

Going into 2026, it is also key for taxpayers to strengthen record-keeping, especially for rental or business income, which SARS is increasingly scrutinising.

This includes costs such as rental losses, travel claims, home office deductions, and business-related expenses.

Vallabh and Mkhize said taxpayers should ensure that these expenses are properly documented, invoices are retained, and claims align with SARS requirements.

To benefit in 2026, they added that taxpayers should understand and plan for possible policy changes, such as increased tax enforcement and audits, as well as VAT adjustments, even though earlier proposals were withdrawn.

Given the evolving tax rules and reporting requirements, 2026 is also an important year to review trust deeds and trustee compliance, Vallabh and Mkhize.

Checking Section 7C loan balances and interest charges, and ensuring distributions to beneficiaries are tax-efficient and properly recorded, are key to this review.

Ensuring SARS has the correct email, phone number, and banking details, and regularly checking SARS correspondence, are also easy ways to better manage tax obligations in 2026.

“Many assessments or demands go unnoticed. If you use a practitioner, ensure shared-access permissions are active and maintained,” they said.