SARS has confirmed the promulgation of three key Acts on 1 April 2026, updating tax rates, administration rules, and fiscal definitions. The legislation covers personal and corporate taxes, excise duties, retirement systems, and international tax compliance, reinforcing the country’s revenue framework for 2026.
The South African Revenue Service (SARS) has confirmed that three major Acts were promulgated on 1 April 2026, marking updates to the country’s tax and fiscal framework. The legislation includes the Rates and Monetary Amounts and Amendment of Revenue Laws Act 3 of 2026, the Tax Administration Laws Amendment Act 4 of 2026, and the Taxation Laws Amendment Act 5 of 2026.
Rates and monetary amounts, and amendment of revenue laws Act 3 of 2026
This Act sets the tax rates for the 2025/2026 assessment year across personal income tax, corporate tax, and trusts. It updates monetary thresholds for transfer duties and amends the Employment Tax Incentive Act to support job creation. The legislation also revises excise duties on alcohol and tobacco while blocking a proposed Value-Added Tax increase. By amending several core financial statutes, the Act provides a comprehensive update to South Africa’s fiscal policy and revenue collection framework.
Rates of Normal Tax for Individuals and Special Trusts
| Taxable Income | Rate of Tax |
| Not exceeding ZAR 237,100 | 18% of taxable income |
| Exceeding ZAR 237,100 but not exceeding ZAR 370,500 | ZAR 42,678 plus 26% of amount by which taxable income exceeds ZAR 237,100 |
| Exceeding ZAR 370,500 but not exceeding ZAR512,800 | ZAR 77,362 plus 31% of amount by which taxable income exceeds ZAR370,500 |
| Exceeding ZAR 512,800 but not exceeding ZAR 673,000 | ZAR 121,475 plus 36% of amount by which taxable income exceeds ZAR 512,800 |
| Exceeding ZAR 673,000 but not exceeding ZAR 857,900 | ZAR 179,147 plus 39% of amount by which taxable income exceeds ZAR 673,000 |
| Exceeding ZAR 857,900 but not exceeding ZAR1,817,000 | ZAR 251,258 plus 41% of amount by which taxable income exceeds ZAR 857,900 |
| Exceeding ZAR 1,817,000 | ZAR 644,489 plus 45% of amount by which taxable income exceeds ZAR1,817,000 |
Tax administration laws amendment Act 4 of 2026
The Act introduces changes to the Income Tax Act and Value-Added Tax Act, including a voluntary electronic reporting system for vendors. Updates to the Customs and Excise Act establish voluntary disclosure relief for underpaid duties. Amendments to the Tax Administration Act empower SARS to verify applicants’ physical addresses and clarify procedures for suspending tax debts. The legislation also addresses technical corrections and registration requirements under the Global Minimum Tax Administration Act, aiming to streamline administration, enhance investigative powers, and clarify taxpayer compliance rules.
Taxation laws amendment Act 5 of 2026
This Act updates definitions in key fiscal statutes, including “equity shares” and “severance benefits,” and introduces new terms such as FLAC instruments. It refines the “three-pot” retirement system, extends tax incentive deadlines—including the energy efficiency savings deduction and urban development zone allowance—and aligns provisions with international tax standards, including controlled foreign companies under the Global Minimum Tax Act. Many provisions are retroactive or set to take effect in early 2026.
Tax rates and values relevant to companies (Act No. 5 of 2026)
| Tax Provision / Category | Rate or Numerical Value | Description / Context |
| CFC High Tax Exemption | 67,5% | The threshold of normal tax payable in the Republic required for a controlled foreign company (CFC) to qualify for certain exemptions. |
| Carbon tax rate | R640/tCO2e | The specific rate applied to greenhouse gas emissions that exceed the approved carbon budget. |
| Electricity Generation Factor (Rx) | R0.035/kWh | A factor of 3.5 cents per kWh used in the Carbon Tax formula for electricity generators. |
| Donation Deduction Limit | 10% | The limit for deductions of donations to certain public benefit organisations, calculated against taxable income. |
| Capital Gains Inclusion Rate | 100% | The rate used for certain foreign tax rebate calculations regarding capital gains. |
| Target Company Acquisition Exemption | 20% | Provisions regarding asset-for-share transactions in listed companies for persons holding less than this percentage. |
| Carbon Tax Offset Allowance | 10% to 15% | Various percentage allowances for carbon offsets depending on the specific industrial activity (e.g., 15% for fuel combustion). |
