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2025 Legal and Policy

Legal and Policy - 11 December 2025

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SARS

  • 4 December 2025 – Joint Statement by Belgium, Brazil, Chile, Costa Rica, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Korea, Lithuania, Malta, New Zealand, Norway, Peru, Portugal, Romania, Slovenia, South Africa, Spain, Sweden and the United Kingdom; and the United Kingdom’s Overseas Territory of Gibraltar. In recent years, tax policy developments have greatly enhanced cross-border exchanges of tax information and international cooperation between tax administrations, combating offshore tax non-compliance and tax secrecy on financial accounts. This includes delivering transparency through automatic exchange of financial assets (through the Common Reporting Standard) and crypto-assets (through the Crypto-Asset Reporting Framework).
    Despite these significant advances in automatic exchange of information, there is not yet a mechanism for jurisdictions to exchange information on non-financial assets, especially immovable property. Recognising that ownership and transactions involving immovable property often have cross-border elements, we acknowledge the need for improved mechanisms to ensure that tax authorities have access to relevant information on immovable property assets held and income derived therefrom abroad to enforce tax laws effectively. We therefore welcome the new Multilateral Competent Authority Agreement on Automatic Exchange of Readily Available Information on Immovable Property (IPI MCAA) between tax authorities developed by the OECD. The broad adoption of the IPI MCAA is an important step towards delivering tax transparency on non-financial assets. It will strengthen our ability to monitor and enforce tax compliance, and to combat tax evasion, which undermines public revenues and unfairly shifts the tax burden onto compliant taxpayers. We aim to join the IPI MCAA by 2029 or 2030, subject to domestic procedures as applicable. We also encourage other jurisdictions to join this initiative in the collective effort to promote transparency, fairness and efficiency in global taxation.
  • 4 December 2025 – The South African Revenue Service (SARS) is preparing to implement enhancements to the Tax Directives process as indicated in the IBIR-006 Tax Directives Interface Specification Version 6.901. We recommend that you review IBIR-006 before proceeding with testing. Trade testing dates will be communicated once confirmed. Software implementation is planned for April 2026.
  • 4 December 2025 – The Prohibited and Restricted Imports and Exports list has been updated. Tariff code 9018.50 does not need a letter of Authority from NRCS.
  • 4 December 2025 – Tax Court Judgments
    SARSTC VAT 1543 (VAT) [2025] ZATC JHB (19 November 2025)SARSTC IT 46233 (IT) [2025] ZATC JHB (14 October 2025)Summaries are available on the Tax Court Judgments page
  • 4 December 2025 – Income Tax Act, 1962Binding Private Ruling 423 – Amount paid by a company to the sole beneficiary of its shareholder constitutes a dividend
  • 4 December 2025 – Customs and Excise Act, 1964: The tariffs amendments notice, scheduled for publication in the Government Gazette, relates to the amendments to –Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99, to increase the rate of customs duty on sugar from 364.68c/kg to 436.38c/kg in terms of the existing variable tariff formula (ITAC Minute 08/2025) Publication details will be made available later
  • 5 December 2025 – Customs and Excise Act, 1964: Publication details for tariffs amendments notice R6910, as published in Government Gazette 53796 of 5 December 2025, are now available.
  • 5 December 2025 – Income Tax Act, 1962: Average Exchange RatesTable A – A list of the average exchange rates of selected currencies for a year of assessment as from December 2003Table B – A list of the monthly average exchange rates to assist a person whose year of assessment is shorter or longer than 12 months
  • 5 December 2025 – National Treasury and the South African Revenue Service (SARS) have jointly published the 18th annual edition of the Tax Statistics bulletin. The 2025 edition reviews tax-revenue collection and tax-return information for the 2021 to 2024 tax years, as well as for the 2020/21 to 2024/25 fiscal years. By building a solid foundation for sustainable tax revenue growth, SARS continues to fund a significant portion of government expenditure. It is the nation’s tax-collecting authority, whose mandate is also to promote a culture of voluntary taxpayer compliance and facilitate legitimate trade across our borders. Tax collections have increased from R113.8 billion in 1994/95 to R1 855.3 billion in 2024/25, at a compounded annual growth rate of 9.8% and an average tax-to-GDP ratio of 22.3%. In the 2024/25 fiscal year, SARS collected R2.3 trillion in gross tax revenue (R147.8 billion or 6.9% more than in 2023/24); refunded taxes worth R447.3 billion (R33.4 billion or 8.1% more than in the prior year); and netted tax revenue amounting to R1.9 trillion (R114.4 billion or 6.6%% more than in the preceding year).
    In 2024/25 growth in net Personal Income Tax (PIT) was mainly as a result of above-inflation growth in the Financial Intermediation, Insurance, Real-estate and Business Services and Community, Social and Personal Services sectors’ pay-as-you-earn (PAYE), as well as the gains from Two-Pot withdrawals (which were higher than expected). In the 2024/25 fiscal year, Company Income Tax (CIT) Provisional Tax collections were higher than in the prior year and which growth was mainly due to the Financial Intermediation, Insurance, Real-estate, and Business Services sector, which was buoyed by improved profits. In contrast, the Mining and Quarrying sector continued to contract, mainly due to low commodity prices. Domestic Value-Added Tax (VAT) growth in the 2024/25 fiscal year was driven by improved consumer sentiment, lower interest rates, contained inflation, and early pension-fund withdrawals, all of which have bolstered household consumption in the last quarter of 2025. The broad rise in revenue can also be attributed to enhanced strategies and diligent implementation of compliance measures. The SARS Compliance Programme interventions secured R304.0 billion in compliance revenue as compared to R260.5 billion secured in 2023/24, marking a 16.7% year-on-year increase. A portion of this revenue could be attributed to cash-collection initiatives, amounting to R156.1 billion. Strategies to prevent revenue leakage contributed another R147.9 billion.
    Key figures in the 2025 Tax Statistics bulletin:
  • Chapter 1 of the bulletin shows that the Personal Income Tax (PIT) remains the largest contributor to tax revenue with a contribution share of 39.5%. The tax-to-GDP ratio showed an increase from 22.3% in 2020/21 to 25.1% in 2024/25. The cost ratio of revenue collection decreased from 0.85% in 2020/21 to 0.72% in 2024/25.
  • In Chapter 2 of the publication, the data reveal that by 31 March 2024, the PIT register had grown annually by 4.3% to 27.1 million individuals. The number of individuals expected to submit Income Tax returns was 7.7 million for the 2024 tax year. Income tax, geographic, demographic and other analyses of the assessments of the taxpayers who had been assessed by 26 August 2025 for the 2024 tax year showed that:
  • 2 929 742 (38.0%) of assessed taxpayers were registered in Gauteng.
  • 970 892 (36.0%) of assessed taxpayers in Gauteng lived in the Johannesburg Metro and were taxed on an average taxable income of R480 318.
  • 2 061 259 (26.7%) of assessed taxpayers were between 35 to 44 years old.
  • 4 064 846 (52.7%) of assessed taxpayers were male and 3 612 042 (46.8%) were female; the remainder (0.5%) could not be identified by gender.
  • Contributions to retirement funding (pension, provident and retirement annuity funds) were the largest share of deductions at R278.7 billion (83.7%) of total deductions assessed.
  • Assessed taxpayers reported an aggregated taxable income of R2.7 trillion and tax liability of R563.3 billion. The average tax rate was 20.8% compared to 21.1% in the previous tax year.

Statistics for Company Income Tax (CIT) in Chapter 3 highlighted that, out of the 1 228 437 companies assessed by 31 August 2025 for the 2023 tax year, 21.7% declared a positive taxable income, 54.0% had taxable income equal to zero, and the remaining 24.3% reported an assessed loss. Of the companies assessed, 630 large companies (0.2% of the companies with positive taxable income) that each had taxable income of more than R200 million and were liable for 59.6% of the CIT assessed. The Financial Intermediation, Insurance, Real-estate, and Business-services sector accounted for 279 525 (22.8%) of the assessed companies and was liable for 37.1% of the CIT assessed, contributing the most among all the sectors.
Chapter 4 indicates that in 2024/25, there were 900 285 registered Value-Added Tax (VAT) vendors, of which 496 858 (55.2%) were active. Of these active VAT vendors, 82.5% were companies and close corporations. These vendors contributed 93.8% to Domestic VAT payments and received 93.3% of the VAT refunds paid. Although individuals (sole proprietors) composed 10.4% of active VAT vendors, they contributed 1.6% to Domestic VAT payments and received 0.6% of the VAT refunds paid. As detailed in Chapter 5, Import VAT and Customs Duties accounted for 14.1% and 4.1% of the year’s Total Tax Revenue, respectively. In aggregate, these revenue sources accounted for 18.2% of Total Tax Revenue, which was higher than the 18.0% average attained over the preceding five fiscal years. The largest driver of Import VAT was Machinery and Electronics at 27.0%, whilst Vehicles, Aircraft and Vessels accounted for the most significant portion of Customs Duties at 25.6%, with most imports derived mainly from China.
Finally, Chapter 6 deals with other taxes and collections, such as Capital Gains Tax (CGT), Transfer Duty, Mineral and Petroleum Resources Royalty (MPRR), Southern African Customs Union (SACU) payments, and Diesel refunds.

  • MPRR payments by extractors contracted by R5.3 billion (33.4%) from R16.0 billion to R10.6 billion in 2024/25 due to a significant decline in commodity prices, particularly PGMs, Iron Ore and Coal. This contraction was less severe due to improved Gold prices, which effectively offset the decline in MPRR payments.
  • Regarding SACU arrangements, South Africa contributed 97.1% to the Customs Revenue Pool (CRP) total in 20 24/25, compared to 97.5% in 2023/24. The 2024/25 CRP of R143.3 billion grew by R11.9 billion (9.1%) compared with 2023/24, supported by increased imports of vehicles, machinery, electronics, clothing, footwear, beer, and spirits. Shares received by South Africa in 2024/25 amounted to R81.4 billion (R79.7 billion in the prior year), equal to 47.5% of the R171.3 billion total shared revenue pool (50.0% of R159.5 billion in the prior year). The portion for Botswana, Eswatini (formerly Swaziland), Lesotho, and Namibia (collectively referred to as BELN) amounted to R89.8 billion (52.5%).

The 2025 Tax Statistics bulletin and supporting documents are available on the SARS tax Statistics webpage and www.treasury.gov.za. SARS and National Treasury welcome comments and suggestions from the public. Please send them by e-mail to taxstatistics@sars.gov.za. To access this page in different languages, click on the links below:

  • 8 December 2025 – To simplify compliance, reduce inaccurate declarations, and improve collection of tax revenue, there is a need to enhance the Transfer Duty Declaration (TDC01) on eFiling to address registration issues and ensure compliance during property transactions. These enhancements include, but are not limited to:
    • The tax reference number will now be required for both sellers and purchasers. For Individuals, this will only apply to transactions above R2 million.
    • Removal of Annual income field: The field will no longer be applicable or visible on the form.
    • Inclusion of “Divorced” option under the Marital Status Field.
    • Introduction of a new field titled “Not registered for income tax”: The field applies only to individuals who purchase property and will be a radio button. Once selected, a drop-down menu will need to be populated to select the reason.
    • Enhanced validations will be introduced to reduce submission of inaccurate information to SARS.
  • See the updated Guide for more information – TD-AE-02-G02 – Guide for Transfer Duty via eFiling – External Guide. Or see the Transfer Duty webpage.
  • 8 December 2025 – Regularise your tax matters before they catch up with you! Come to us, let’s help you fix your tax matters today. Apply using VDP01 form on eFiling or via a SARS branch appointment.For more information, see the Voluntary Disclosure Programme webpage.
  • 9 December 2025 – SARS has enhanced its digital channel (eFiling). This enhancement will enable taxpayers to initiate payment arrangements on eFiling for Trust Assessed Tax.For more information, see the updated guide: GEN-DC-20-G03 – Deferral of Payment Arrangements on eFiling – External Guide.
  • 9 December 2025 – The Tax Administration Act No. 28 of 2011 (TAA) provides for reporting unprofessional conduct of tax practitioners, professionals who provide tax assistance; and unregistered individuals practicing as tax practitioners where such persons act in a manner that is in contravention with the provisions of the TAA and/or Code of Conduct of their respective controlling body. The external guide that provides guidance regarding reporting of unprofessional conduct by tax practitioners to SARS has been updated. GEN-GEN-08-G01 – Reporting Unprofessional Conduct – External Guide
  • 9 December 2025 – SARS is introducing an online registration system for Income Tax Exempt Institutions. This digital system aligns with SARS’s strategic objective to simplify taxpayer compliance through digital platforms. The pilot commenced on 8 December 2025 until 26 February 2026, and will include the migration and data take-on of all existing records and pilot trade testing. The approach will ensure an improved taxpayer experience once the full system is launched on 27 February 2026.
    What to Expect During Transition Phase
    • Existing Applications: SARS will ensure that all existing applications submitted prior to the 12 December 2025 switch-over period will be finalised in accordance with existing turnaround times.
    • Discontinuation of Manual Applications: SARS will discontinue the manual application submission process (EI1 form) effective 12 December 2025.
    • New Applications: SARS will accept new applications via its new online registration and application platform from 27 February 2026.
    • Preparation Period: Entities intending to apply for Income Tax exemption must:
      • Register for Income Tax (if the entity does not yet have an Income Tax number)
      • Register for eFiling
      • Appoint a Registered Representative
      • Ensure that all the supporting documents are complete.
    • Branch Access: Taxpayers will be able to register for Income Tax and eFiling and at your local SARS branch. Branch visits must be booked using the online eBooking system.
  • As we roll out this system, we encourage all taxpayers and stakeholders to embrace the transition and thank you for supporting the digital transformation process. SARS will continue to provide updates to taxpayers and stakeholders throughout the transition period. See the Tax Exempt Institutions landing page and its subpages for more information.
  • 9 December 2025 – Company Director facing corruption charges sentenced for R3.6 million tax fraud. The Investigating Directorate Against Corruption (IDAC) in collaboration with the South African Revenue Service (SARS), and other law enforcement agencies have secured six years direct prison sentence with two years suspended for Tshepo Khoza in a tax fraud matter involving approximately R3.6 million, linked to systemic corruption within state procurement processes. Tshepo Khoza, director of Grey Apple Trading Enterprise (Pty) Ltd, was found guilty on three counts of fraud, one of which falls under Schedule 5 category (serious crimes) and one count of failing to register for Value-Added Tax (VAT) in contravention of section 234 of the Tax Administration Act.

      The conviction follows extensive investigations under Project Blue Lights, which uncovered that Grey Apple Trading Enterprise received tenders from the South African Police Service (SAPS) linked to the DNA project that resided under the FSL       unit (forensic science laboratory).These tenders were awarded due to Khoza’s family relationship with a senior SAPS official. Despite earning approximately R3.6 million between 2015 and 2018, Khoza falsely declared the company to be dormant       and failed to declare income to SARS. The corruption trial wherein he is charged with others will resume on 22 February 2026. SARS Commissioner Edward Kieswetter together with IDAC Head, Adv Andrea Johnson acknowledged the teamwork       that led to this conviction, reinforcing the public’s trust in joint efforts to uphold tax compliance and fight corruption.      “Tax fraud is not a victimless crime. It is theft from the national fiscus and, ultimately, from the millions of South Africans who depend on government services for education, healthcare, and social support. Every rand stolen through fraudulent        schemes undermines our country’s ability to deliver on its constitutional mandate. SARS will not tolerate such conduct. We will pursue every case relentlessly, and those who choose to defraud the system must know that accountability is certain        and justice will prevail,” Kieswetter said. This outcome demonstrates the effectiveness of coordinated efforts between SARS, IDAC, and law enforcement agencies to combat tax-related crimes and corruption in public procurement. The case        forms part of a broader strategy to dismantle networks that undermine fiscal integrity and public trust. This communicates our unswerving commitment to bring to book those that are committed to defraud the state. For further information please        contact: SARSMedia@sars.gov.za and IDAC Spokesperson- Henry Mamothame 0823175731.

  • 10 December 2025 – The Guide to Complete the Lump Sum Tax Directive Application Forms has been updated to:Clarify when an in-active tax reference number will be accepted on a tax directive application. Emphasise the Fund’s duty to take into account the potential Double Tax Agreement (DTA) implications for non-resident clients. Clarify the process for applying for a tax directive where there is insufficient taxpayer information.
  • 10 December 2025 – SARS is introducing an online registration system for Income Tax Exempt Institutions (TEI). This digital system aligns with SARS’s strategic objective to simplify taxpayer compliance through digital platforms. The pilot will commence on 8 December 2025 until 26 February 2026, and will include the migration and data take-on of all existing records and pilot trade testing. The approach will ensure an improved taxpayer experience once the full system is launched on 27 February 2026. To read more about this in Tax Exempt Institutions Connect Issue 10 (December 2025) and other TEI news, see our latest newsletter here.
  • 10 December 2025 – National Legislation
    • Draft Notice – Setting the requirements and conditions that must be met by a company for purposes of paragraph (b) of the definition of “REIT” in section 1(1) of the Income Tax Act, 1962

      Due date for comment: 31 January 2026

NATIONAL TREASURY

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AuthorLegal and Policy
DivisionTax
Categories
Legal and Policy
Date11 December 2025