SARS document reveals planned 2025 tax changes in South Africa
The 2025 Budget Tax Guide, published on the South African Revenue Service (SARS) website, revealed the planned tax changes for this year.
Finance Minister Enoch Godongwana was set to deliver the 2025 Budget Speech on 19 February 2025, but it has been postponed to 12 March.
National Speaker Thoko Didiza adjourned the event following consultation with all the chief whips of political parties.
President Cyril Ramaphosa called an emergency cabinet meeting to allow the Finance Minister to address parties within the Government of National Unity (GNU).
Didiza said postponing procedures would give the Cabinet enough time to reexamine and present the budget in March.
The Democratic Alliance (DA) issued a statement shortly after Didiza’s announcement that the 2025 Budget Speech was postponed.
DA leader John Steenhuisen said the postponement of the Budget Speech was a victory for the people of South Africa because it prevented a 2% VAT increase.
“The DA unequivocally rejected the ANC’s VAT hike plan. If included in the Budget, the DA was prepared to vote it down in Parliament,” Steenhuisen said.
He said the DA would now help introduce a new Budget anchored in growing the economy rather than increasing taxes or debt.
Although Godongwana did not deliver his 2025 Budget, a 2025 Budget Tax Guide published on the SARS website revealed what was planned.
The SARS tax pocket guide summarised the most important information about taxes, duties, and levies for 2025/26.
- Value-added tax (VAT) – VAT, which was levied at the standard rate of 15% on the supply of goods and services by registered vendors, was set to increase to 17% from 1 April 2025.
- VAT zero-rating – VAT zero-rating was set to be introduced on specific edible offal, unflavoured dairy liquid blends and specific canned and bottled vegetables to assist poor households.
- Personal income tax – Personal income tax rebates and the first two tax brackets were fully adjusted for the effect of inflation, and the other tax brackets were partially adjusted.
- Excise duties – There was set to be an increase of 6.83% in excise duties on alcoholic beverages and an increase of between 4.83% and 6.83% in excise duties on tobacco products.
- Fuel levy – There was set to be no change to the general fuel levy and road accident levy.
- Transfer duty – Transfer duty was set to be adjusted for the effect of inflation.
- Ad valorem excise duty – There was set to be no ad valorem excise duty on lower-value smartphones.
It should be noted that this document is no longer applicable as the Finance Minister did not officially announce these changes in a budget speech.
Finance Minister Enoch Godongwana said the revised budget will be tabled on 12 March 2025. This means that these proposed tax changes will be different next month.
Personal income tax
| 2024/25 | — |
| Taxable Income (R) | Rate of Tax |
| 1 – 237 100 | 18% of taxable income |
| 237 101 – 370500 | 42 678 + 26% of taxable income above 237 100 |
| 370501 – 512 800 | 77362 + 31% of taxable income above 370 500 |
| 512 801 – 673000 | 121475 + 36% of taxable income above 512 800 |
| 673001 – 857900 | 179 147 + 39% of taxable income above 673000 |
| 857901 – 1 817000 | 251 258 + 41% of taxable income above 857 900 |
| 1 817001 and above | 644489 + 45% of taxable income above 1 817000 |
| — | — |
| 2025/26 | — |
| Taxable Income (R) | Rate of Tax |
| 1 – 248600 | 18% of taxable income |
| 248601 – 388400 | 44748 + 26% of taxable income above 248600 |
| 388401 – 529200 | 81096 + 31% of taxable income above 388400 |
| 529201 – 694500 | 124744 + 36% of taxable income above 529200 |
| 694501 – 885400 | 184252 + 39% of taxable income above 694500 |
| 885401 – 1875100 | 258703 + 41% of taxable income above 885400 |
| 1875 101 and above | 664480 + 45% of taxable income above 1875 100 |
Value-added tax
| 2024/25 | 2025/2026 |
| 15% | 17% |
Companies Tax
| 2024/25 | 2025/26 |
| 27% of Taxable Income | 27% of Taxable Income |
Income Tax: Small Business Corporations
| 2024/25 | — |
| Taxable Income (R) | Rate of Tax (R) |
| 1 – 95 750 | 0% of taxable income |
| 95751 – 365000 | 7% of taxable income above 95 750 |
| 365 001 – 550000 | 18848 + 21% of taxable income above 365000 |
| 550001 and above | 57698 + 27% of the amount above 550000 |
| 2025/2026 | — |
| Taxable Income (R) | Rate of Tax (R) |
| 1 – 100350 | 0% of taxable income |
| 100351- 365000 | 7% of taxable income above 100350 |
| 365001- 550000 | 18525 + 21% of taxable income above 365000 |
| 550001 and above | 57375 + 27% of the amount above 550000 |
Transfer Duties
| 2024/25 | — |
| Value of property (R) | Rate |
| 1 – 1 100000 | 0% |
| 1 100001 – 1 512 500 | 3% of the value above R1 100000 |
| 1 512 501 – 2 117 500 | R12 375 + 6% of the value above R 1 512 500 |
| 2117501 – 2722500 | R48 675 + 8% of the value above R 2 117 500 |
| 2722501 – 12100000 | R97 075 +11% of the value above R2 722 500 |
| 12 100001 and above | R1 128600 + 13% of the value exceeding R12100 000 |
| 2025/26 | — |
| Value of property (R) | Rate |
| 1 – 1210000 | 0% of the value |
| 1210001 – 1663800 | 3% of the value above R 1210000 |
| 1663801 – 2329300 | R 13614 + 6% of the value above R 1663800 |
| 2329301 – 2994800 | R53 544 + 8% of the value above R 2329300 |
| 2994801 – 13310000 | R106 784 +11% of the value above R2 994800 |
| 13310001 and above | R 1241456 + 13% of the value exceeding R 13310000 |
Capital Gains Tax
| Capital Gains | 2024/25 | 2025/26 |
| Individuals and special trusts | 18% | 18% |
| Companies | 21.60% | 21.60% |
| Other trusts | 36% | 36% |
Retirement Fund Lump Sum Withdrawal Benefits
| 2024/25 | — |
| Taxable income (R) | Rate of tax |
| 1 – 27 500 | 0% of taxable income |
| 27501 – 726000 | 18% of taxable income above 27 500 |
| 726001 – 1089000 | 125 730 + 27% of taxable income above 726000 |
| 1089001 and above | 223 740 + 36% of taxable income above 1089000 |
| 2025/26 | — |
| Taxable income (R) | Rate of tax |
| 1 – 27500 | 0% of taxable income |
| 27501 – 726000 | 18% of taxable income above 27500 |
| 726001 – 1089000 | 125730 + 27% of taxable income above 726000 |
| 1089001 and above | 223740 + 36% of taxable income above 1089000 |
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