CFO Concierge- What You Should Know About Tax Compliance in 2026

2026 is the year to get your house in order, and we have the inside tips make sure you don't miss a beat.

The 2026 tax year is shaping up to be one of the most consequential for South African taxpayers in recent memory. With SARS rolling out significant system upgrades, inflationary adjustments returning to personal income tax for the first time since 2023, and sweeping changes to VAT and small-business thresholds, the message from the revenue service is clear: compliance is non-negotiable, but the process is getting smarter. Here is everything you need to know to stay ahead.

The Filing Season: Mark Your Calendar

SARS has confirmed the 2026 filing season dates, and they are firm:

Taxpayer Type	Opening Date	Closing Date
Auto Assessments	1 July 2026	12 July 2026
Non-Provisional Individuals	13 July 2026	23 October 2026
Provisional Taxpayers	13 July 2026	22 January 2027
Trusts	13 July 2026	22 January 2027

If you are auto-assessed, you have a narrow 12-day window to review and accept or edit your return. Miss it, and you fall into the standard filing queue. For provisional taxpayers and trusts, the extended January deadline offers breathing room, but only if your first two provisional tax payments were accurate and on time.

No New Tax Hikes - But Brackets Are Moving Again

For the first time since 2023, Budget 2026 introduced inflationary adjustments to personal income tax brackets, rebates, and tax thresholds, aligned to a 3.4% inflation forecast. This means taxpayers whose salaries have only kept pace with inflation should not be pushed into higher brackets by default - a welcome relief after years of "bracket creep." The government also formally withdrew the proposed R20 billion tax increases from Budget 2025, citing an improved fiscal outlook. No new tax hikes were introduced for the 2026/27 year of assessment.

Retirement and Savings: More Room to Grow

Long-term savers received two meaningful boosts:

• Retirement fund contribution deduction limit: Increased to R430,000 per annum.

• Tax-Free Savings Account (TFSA) annual limit: Increased to R46,000 - the largest single-year jump since TFSAs were introduced in 2015. The lifetime limit remains R500,000.

A critical warning: SARS levies a 40% penalty tax on any contribution above the annual or lifetime limit. The R46,000 cap applies in aggregate across all TFSAs you hold, so track your combined deposits carefully.

Two-Pot Retirement System: Know Your Tax Treatment

If you made a withdrawal from the savings component of your retirement fund under the Two-Pot system, that amount is taxed at your marginal income tax rate, not the retirement lump-sum tax tables. Your fund processes a tax directive based on an estimated marginal rate. If you have multiple income sources and the directive under-deducted, the shortfall will appear in your annual tax assessment (expected around 21 July 2026 for auto-assessed taxpayers). The balance is due by 20 October 2026, with interest accruing on late payments. Verify your total income against the applied directive rate before the deadline bites.

VAT and Small Business: The R2.3 Million Line

From 1 April 2026, two pivotal thresholds shifted dramatically:

• Compulsory VAT registration: Now triggered at R2.3 million in taxable supplies per annum (up from R1 million).

• Voluntary VAT registration: Now available from R120,000 in taxable supplies (up from R50,000).

• Turnover Tax eligibility: The annual turnover ceiling rose to R2.3 million, and the tax-free band for micro-businesses now covers the first R600,000 of turnover (up from R335,000).

These changes are the first meaningful updates to the small-business tax regime since 2009. For qualifying micro-businesses, Turnover Tax replaces Income Tax, VAT, Provisional Tax, Capital Gains Tax, and Dividends Tax with a single, simplified payment based on turnover, not profit. If your business has simple records and low turnover, registering for Turnover Tax before the start of your next tax year could slash your compliance burden.

Capital Gains Tax: Long-Overdue Relief

After years of frozen thresholds, CGT exclusions received their first inflationary adjustments:

• Annual exclusion: R50,000 (up from R40,000).

• Primary residence exclusion: R3,000,000 (up from R2,000,000).

• Death exclusion: R440,000 (up from R300,000).

• Small-business disposal exclusion (age 55+): R2,700,000 (up from R1,800,000), with the market-value ceiling raised to R15,000,000.

A crucial timing rule: for property, the CGT liability arises when the sale agreement is signed, not when transfer registers at the Deeds Office. If you signed in February 2026 but transfer only happens in May, the gain falls in the 2025/26 tax year. Plan your sale timing accordingly.

Employers: The ITRN Mandate Is Now Hard-Coded

From the 2026 reconciliation period (year-end February 2026, with the annual EMP501 window opening 1 April 2026), including a valid Income Tax Reference Number (ITRN) on every IRP5/IT3(a) certificate is mandatory for all employees required to register under Section 67 of the Income Tax Act. SARS eFiling and e@syFile will reject the entire 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. Do not wait until reconciliation week.

Crypto Assets: SARS Is Watching

SARS has sharpened its stance on crypto:

• Frequent trading or business-like conduct: Gains taxed as ordinary income at your marginal rate.

• Long-term investment holding: Gains subject to Capital Gains Tax (maximum effective rate 18% for individuals).

You must declare all crypto trading on your ITR12 using source code 4522. All transactions - gains and losses - must be reported. If you have previously undeclared crypto income, the Voluntary Disclosure Programme (VDP) allows you to regularise your affairs with reduced penalties, but only before SARS initiates an audit. Once the audit notice lands, VDP is off the table.

Trusts: Penalties Are Live

Trusts with both 2024 and 2025 income tax returns outstanding now face administrative penalties from 2 March 2026. SARS has also issued a stern reminder that trusts must submit returns every year, even if there was no economic activity. If a trust is no longer needed, trustees must first regularise its tax affairs with SARS, then formally terminate it through the Office of the Master of the High Court, and only then request deregistration. Terminating with the Master first legally extinguishes the trust - and any refund SARS may owe it.

Global Minimum Tax: The Multinational Countdown

South Africa's Global Minimum Tax regime (Pillar Two) is now in effect for Multinational Enterprise (MNE) Groups with consolidated revenue of at least €750 million (~R15 billion). Key deadlines:

• 16 March 2026: GloBE registration and notification functionality launched on SARS eFiling.

• 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.

The Undertaxed Profits Rule (UTPR) is not included in South Africa's legislation, but the Income Inclusion Rule and Domestic Minimum Top-up Tax are fully operational.

Exchange Controls: A Major Relaxation

Following FinSurv's consultation process, the Single Discretionary Allowance has doubled to R2 million per year (up from R1 million). Resident individuals can now transfer up to R2 million offshore annually without requiring a SARS Tax Compliance Status Pin - Approved International Transfer. Married couples can collectively move R4 million per year under this relaxation. The Investment Allowance (requiring a TCS Pin) remains at R10 million per year.

SARS Digital Upgrades: Smarter, Faster, Stricter

The 2026 filing season brings tangible improvements to the eFiling experience:

• Prefilled data: Investment income and other third-party data will already appear on your form.

• Simplified questions: Fewer repeated questions and clearer wording on the ITR12.

• Better residency guidance: New date fields and questions to help you get your status right.

• Medical aid dropdown: Approved schemes listed to eliminate selection errors.

• WhatsApp integration: Receive your Notice of Assessment (ITA34) and upload supporting documents via WhatsApp.

• New declaration alert questionnaire: Designed to catch verification issues before they trigger an audit.

SARS has also upgraded its Tax Directives system, repealed section 8A of the Income Tax Act in favour of section 8C, and introduced bulk Recognition of Transfer (ROT) cancellation functionality. The message is unambiguous: the revenue service is investing heavily in automation, which means errors are flagged faster and penalties are applied harder.

Interest Rates and Penalties: The Cost of Non-Compliance

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 concession: 10.25% per annum.

Provisional taxpayers who underestimate their second period estimate by more than 20% below final taxable income face a 20% underestimation penalty. Late provisional payments attract a 10% penalty. These are not warnings; they are automatic charges.

Final Word: Compliance in 2026 Is a Mindset

2026 is not a year to test SARS patience. The systems are smarter, the thresholds are clearer, and the penalties are already coded into automated workflows. Whether you are an individual auto-assessed taxpayer, a provisional taxpayer juggling multiple income streams, a small-business owner deciding between Turnover Tax and standard VAT, or a trustee managing a family trust, the principle is the same: file accurately, file on time, and file before SARS has to ask twice.

Get your house in order now. SARS already has the blueprints.

Sources: PwC Tax Summaries South Africa; SARS Budget 2026 FAQs; SARS What's New updates; SAICA Legal & Policy briefings.