News Category: Finance

Budget 3.0: VAT Increase Out, Fuel Levy Hikes In

BUDGET 3.0: VAT INCREASE OUT - FUEL LEVY HIKES IN

Last month’s Budget 3.0 withdrew the contentious proposed VAT changes. This resulted in inflation-linked fuel levy increases of 16c for petrol and 15c for diesel, from 4 June.  
 
Other tax proposals from March’s Budget – including static personal tax thresholds, reduced transfer duties, and sin tax increases – remain unchanged.
 
The tax measures contained in Budget 3.0 will raise an additional R18bn in 2025/26. A further R20bn in tax measures are postponed to Budget 2026 – unless SARS collects an extra R35bn in uncollected taxes, for which Budget 3.0 allocated an additional R4bn in funding.

Your Tax Deadlines for June 2025

  • 06 June – PAYE submissions and payments    
  • 25 June – VAT manual submissions and payments   
  • 27 June – Excise duty payments
  • 30 June – VAT electronic submissions

The 5 Cognitive Biases That Could Sink Your Business

5 COGNITIVE BIASES THAT COULD SINK YOUR BUSINESS

Too often we hold fast to the clichés of our forebears. We subject all facts to a prefabricated set of interpretations. We enjoy the comfort of opinion without the discomfort of thought.

- John F. Kennedy, former US president

Running a business requires leaders to make hundreds of decisions each year. Some of these are small and inconsequential. But others have the power to affect the company’s future, determine the happiness of its customers and impact the lives of all its employees.  Without knowing it, however, each decision-maker typically brings their personal history, biases and experiences to each decision they make. And sometimes this can be very costly. Here are five ways your biases could sink your business – and how to prevent that from happening.

Humans are creatures of habit. We form opinions and sets of actions that we use as shorthand for all future decisions. We become trapped in loops of our own making and fall prey to common human ways of thinking that may save time, but ultimately hurt us. In business, these sorts of cognitive biases can damage relationships, and lead companies down dangerous paths. The sad thing? Most of us don’t even realise they exist. Here are five cognitive biases that could sink your business if you’re not careful.               

  1. Favouring evidence that backs our beliefs
    Back in the days of VHS, video rental behemoth Blockbuster was offered the opportunity to buy a start-up that distributed their videos by mail, and were building the infrastructure to stream videos online. Convinced that the video store model was the only way to go, the board rejected the opportunity to purchase Netflix and over the next few years Blockbuster went bankrupt. While it’s tempting to see this as a sign of foolishness, the reality is that all of us are prone to undervaluing data which contradicts our beliefs and favouring that which reinforces it. These confirmation biases can only be overcome by actively seeking out disconfirming evidence and encouraging a culture of robust debate among your employees.
  1. Doggedly holding the line
    In 2008, signs began to leak out across the American economy that a large collapse was coming. Banks were overextended and the money from loans was not being returned fast enough – but many large businesses held the line and did not prepare for failure. The information they’d been given for years suggested the loans model worked and they did not adjust their behaviour as the data first trickled, and then thundered in. The result? An economic collapse for the ages.  A 1974 study by Tversky and Kahneman explains their decision making with the anchoring bias. This study showed that even when presented with later information, people’s numerical estimates were significantly influenced by irrelevant initial figures. The first information is given much more weight than later information, even if the later information comes from stronger sources. Luckily this bias is easy to overcome, by simply distrusting the early data – always compare it carefully with what comes later.
  1. Too much self-belief
    Convinced their market dominance would carry them through, and unimpressed with the new digital cameras, photographic film manufacturer Kodak continued business as usual in the early 2000s. Despite their position as market leader and an early pioneer, these decisions lead to their eventual complete collapse. Kodak is a clear example of the overconfidence bias, which Bazerman and Moore detailed in their book Judgement in Managerial Decision Making. Overconfidence bias is our very human tendency to overestimate one’s own knowledge, skills, or the accuracy of one’s predictions. In business, this can manifest in risky decisions, such as under-pricing products, over-leveraging debt, or ignoring potential competitors. To overcome this, regularly schedule sessions to evaluate your decisions against the data, and seek outside advice from your accountants and other experts.
  1. Don’t follow the Joneses
    Anyone who was alive in the 1990s remembers the Dotcom bubble. Tech companies were absolutely flooded with investment, with little care for the fundamentals from those who were convinced that tech’s bright future would lead to their own financial success. When the bubble burst in the early 2000s, many of those investors found themselves without a penny to their names.  The Dotcom bubble is an example of what’s known as the herd mentality. It describes a cognitive bias in which people have a tendency to mimic the actions of the masses, even against their own better judgement or personal logic. The rule here is simply: don’t do something just because everyone else is doing it. Never blindly follow trends.  This comes with a caution though – while copying others for the sake of it is a bad idea, don’t fall into the trap demonstrated by Sears either. The former retail giant exhibited loss aversion bias by clinging to its traditional brick-and-mortar model and resisting e-commerce expansion for years – ultimately resulting in it filing for bankruptcy in 2018.
  1. Place the blame correctly
    In 2008 Lehman Brothers was possibly the largest casualty of the economic collapse. Where many other financial institutions managed to keep their heads above water, Lehman Brothers sank below the waves. Unlike their more successful peers, Lehman Brothers had attributed all of their woes to the external factors of the economic collapse and failed to recognise the company’s own risky investments and poor decision-making as contributing factors.  This error is commonly known as attribution bias. In 2014, Mallett and Monteith explored attribution bias in business settings, showing that leaders often misattribute their company’s failures to external forces, preventing them from identifying areas for improvement. You can avoid this by promoting self-awareness and accountability. Don’t be afraid of asking experts for their input and always encourage regular post-mortems on projects to identify both internal and external factors contributing to their success or failure.
The Bottom Line

One of the best ways of overcoming biases is to get objective advice from external sources. As your accountants we can offer an important perspective – our door is always open!

Mind The Tax Gap! Here’s How…

MIND THE TAX GAP! Here is how...

In 2025/26, SARS will focus on addressing the tax gap to improve revenue collection.

- National Treasury Budget Review

Increased funding allocated in Budget 2025 will enable SARS to zoom in on an estimated R800 billion in unpaid taxes in South Africa, including a substantial so-called “tax gap” of uncollected taxes. For taxpayers, this means more scrutiny, enquiries, verifications, and audits – and more stringent debt collection measures. Here’s how we can help you mind the “tax gap” by maintaining complete compliance and taking immediate action if your tax affairs become the subject of SARS’ scrutiny. 

With additional funding from National Treasury, SARS will now be better positioned than ever to collect the estimated R800 billion in unpaid taxes which SARS Commissioner Edward Kieswetter has identified as a better alternative than a VAT hike to balance the South African Budget.

Much of the estimated R800 billion in unpaid taxes consists of the so-called “tax gap” – the difference between how much tax is legally due to SARS and the amount that is actually paid on time. SARS has reported the following:

  • Just over R400 billion in undisputed uncollected debt
  • Over R100 billion in debt currently under dispute
  • More than 54 million outstanding returns dating back several years
  • 156,000 South Africans with substantial economic activity who are not registered taxpayers, or are not filing their tax returns.

The remainder of the R800 billion unpaid taxes is made up by “aggressive tax planning” such as base erosion, transfer pricing, and other means of tax evasion, as well as unpaid excise duties, unpaid VAT, and illicit trade flows.  Kieswetter said R2 billion of the additional R2.5 billion that SARS will receive for 2025/26 will be used for “a massive debt recovery programme”, while R500 million will be used to modernise SARS’ systems.  Given SARS’ enhanced capabilities and focus on collecting outstanding debt, our tax expertise will be crucial in ensuring you and your business maintain complete compliance and react immediately and correctly should your tax affairs become the subject of SARS’ scrutiny.

Tax compliance tick box

Maintaining compliance starts with:

  • Being registered for all applicable tax types within the stipulated time frames
  • Making accurate declarations
  • Filing returns and other required documentation on time
  • Paying the correct amount of tax on time
  • Promptly responding to SARS communications
  • Paying penalties and interest for non-compliance, such as late submissions or under-declared income.
How we can help you mind the tax gap 

We can help you to comply with your specific tax obligations with up-to-date tax expertise and best practices.

  • We promptly and professionally respond to communications from SARS, such as notices of demand for unfiled returns, requests for information, or notifications of penalties levied.
  • We take immediate and correct action following demands for outstanding tax debts. Taxpayers have ten business days after receiving a Final Demand to either pay, arrange deferral of payment or make a payment arrangement, file a suspension of payment with an objection, or enter into a compromise agreement.      

What’s more, our expertise and experience enable us to monitor that SARS is following the correct legal procedures. This ensures that your taxpayer rights are protected and preventing illegal collection measures such as unauthorised SARS withdrawals from bank accounts.

Bottom line

SARS says it will be relentless in its efforts to collect the billions of rands in uncollected taxes, and that it is ready to act against those who wilfully and defiantly ignore their legal tax obligations.  Similarly, we will be relentless in ensuring you maintain complete tax compliance in all your affairs. And we are ready to take the proper and timely action when SARS’ spotlight shines on your tax affairs.

Zen and the Art of Fostering Job Stability in an Uncertain World

ZEN and the ART OF FOSTERING JOB STABILITY in an Uncertain World

The more tranquil a man becomes, the greater is his success, his influence, his power for good.

- James Allen

Today’s work environment is fast-paced, unpredictable and ever-changing. Between the gig economy, retrenchments and the transformations brought about by AI and other technologies, studies are now showing that the traditional 9-to-5 job is no longer viewed as being a stable way of life.  Workers are increasingly feeling insecure. This fear is impacting their mental health –  and in turn, the stability of the businesses they work for. Read on to find out what employers can do to combat these feelings of instability and help foster a sense of security within their organisations.

The world of work has never felt less stable. Between high unemployment rates, a quicksand political environment, the gig economy and the introduction of new disruptive technologies (and tariffs!) almost daily, it’s no surprise that recent studies are showing people in 9-to-5 jobs no longer feel stable. A study by MyPerfectResume in 2024 found that four out of every five workers were afraid they may lose their jobs in 2025 due to technological advancements such as automation, artificial intelligence, and outsourcing. This was reinforced by the pandemic, when vast numbers of people were retrenched or otherwise lost their jobs.  This uncertainty is affecting the mental health of modern workers. And it’s lowering productivity and impacting businesses, creating a vicious cycle of instability. According to the Journal of Occupational Health Psychology, workers who feel insecure about their jobs report higher levels of burnout, less job satisfaction, and lower engagement levels. When workers are constantly worried about being let go, it typically affects their focus, creativity, and long-term commitment to their employer.

But does it have to be this way? Here are our tips for making your employees comfortable, more stable and ultimately, happier.        

Honesty is the best policy
A little communication has been shown to go a long way to keep a workforce happy. Regular updates about company performance, future prospects, and any potential restructuring plans can help employees feel more in control and less fearful of unexpected layoffs. The Harvard Business Review (2020) found that organisations that maintain open lines of communication during times of uncertainty are able to reduce employee anxiety and build trust.

Teach a man to fish
Even if things are uncertain for your company, you should do your best to help upskill your employees and train them in new and exciting technologies. Focusing on continuous learning sends a strong signal that your company understands the modern environment and is planning for it. This doesn’t just lessen stress it also helps employees to feel that even if they are retrenched, they will still be well positioned to find new work.  Your business will benefit too: the World Economic Forum suggests that employers who provide opportunities for skill development, including training in new technologies and leadership, are more likely to retain talent and maintain higher levels of employee morale. What’s more, training staff can lead to tax incentives. Speak to your accountant (that’s us) if you aren’t already taking advantage of these breaks.

B is for balance
It may sound counter-intuitive, but hybrid work models are repeatedly being shown to be an effective way to boost employee morale and lower the stress related to job loss. A 2022 report by Gallup found that employees who have more flexibility in how, when and where they work are more satisfied with their jobs and feel more secure in their roles. A quantum workplace study found that 89% of employees were looking for hybrid or remote work. Having control over their lives in this area gives employees the confidence and mental stability they need to handle other stresses so they can deliver better at work.

Show the way
Job insecurity often stems from the fear that an employee’s current job offers no opportunities for advancement. A study by The Conference Board in 2018 showed that employees who are offered mentorship, leadership training, and a clear pathway to promotion are more likely to stay committed and engaged. Knowing that they are being eyed for future roles gives them the assurance that they won’t be first on the chopping block when the tough times arrive.

If any of these initiatives are beyond your current budgets, speak to us about helping you restructure your finances.
After all, retaining good employees is much cheaper than trying to find new ones.

This Workers’ Day, Look After Your Business’ Greatest Asset

THIS WORKERS' DAY, LOOK AFTER YOUR BUSINESS' GREATEST ASSET

Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.

- Richard BransoN

Workers’ Day acknowledges the contributions of workers and recognises the importance of upholding their rights. But celebrating workers is not just a government initiative. It’s a forward-thinking approach to labour relations that is increasingly embraced by progressive companies around the world.  Here are five reasons why happy workers are a business’ greatest asset. And five simple ways your business can enhance happiness and wellbeing among your workers. 

Whether you call it May Day, Labour Day or International Workers’ Day, 1 May is an opportune time for businesses to consider and prioritise their workers. 
Here’s why happy workers are a business’s greatest asset (and some ways to foster a happier workforce).

 

BUSINESS BENEFITS OF HAPPY WORKERS

 

Increased productivity. Various studies have shown that happy workers are more committed to company goals and up to 13% more productive.

Improved customer service. People who are happy at work provide better customer service, leading to higher customer satisfaction and loyalty.  

Reduced costs. Lower absenteeism and improved worker retention mean substantially reduced labour costs.

Enhanced creativity and innovation. Happy workers buy into the big picture, offer creative solutions, take thoughtful risks, collaborate and are more likely to experiment.

Superior business performance. Gallup research shows that companies with happy workers can outperform competitors by up to 200%, and achieve up to 22% higher profitability. 

5 WAYS TO INCREASE HAPPINESS IN YOUR WORKPLACE

  1. Create a supportive work environment
    Essential for employee wellbeing is a safe and supportive work environment in which diversity is valued and everyone is included and treated respectfully. This is also the foundation for a company culture that’s centred around teamwork, collaboration, job satisfaction, and accomplishment.      
  1. Balance job demands with resources
    Providing sufficient and appropriate resources to ensure staff can meet their work demands means the work gets done efficiently and on time. It is also important that workers’ roles and responsibilities are clear and aligned with company goals, and that issues like time pressures and overwhelming workloads are addressed quickly. 
  1. Offer competitive compensation and benefits
    Be sure to offer fair compensation packages as well as benefits that add value to employees, such as flexible scheduling and work arrangements, extra paid time off or even an onsite canteen, gym, or creche. Maintain this competitiveness through annual compensation reviews.       
  1. Recognise and appreciate all workers
    It can be a really good idea to implement a formal recognition programme. After all, over 70% of employees say “feeling unappreciated” is the biggest driver of dissatisfaction. It’s equally important to make health and wellbeing a priority in your workplace and to encourage workers to share their feedback, ideas and concerns. Nobody likes to feel ignored!     
  1. Invest in professional development
    Continuously provide the necessary training and tools for employees to perform effectively. Complement this by investing in professional development, and offering workers at all levels opportunities for upskilling and career advancement.
The bottom line…

There is a real return on an investment in happy workers – and many easy ways to increase the level of happiness and engagement among your workers.  Call on us to assist with calculating optimal compensation packages and to provide financial and tax advice as you invest in your workforce’s wellbeing and happiness.

5 Tips for Using Reviews to Boost Your Business

5 TIPS FOR USING REVIEWS TO BOOST YOUR BUSINESS

“Reviews aren't just about feedback, they're about building a relationship with your customers."

- Oprah Winfrey

In the history of business, little has been as effective in making or breaking sales as customer reviews. With Google now placing increasing relevance on tracking and promoting companies with genuine good reviews, this has never been truer than it is now.  What many don’t know, however, is that it’s what you do after receiving a review that makes the biggest difference. Here are five ways you can capitalise on your reviews to improve your business.

According to a recent survey, 91% of people regularly or occasionally read online reviews, and 84% trust online reviews as much as a personal recommendation from a friend. There’s no doubt that reviews are having a moment.

The challenge comes when you learn that it can take as many as 20 good reviews to overcome a single bad one. Little wonder, then, that many companies try to focus on encouraging unhappy customers to remove their bad reviews, while generally neglecting the good ones, save for a short thank you message. This may, however, be short-sighted as using reviews correctly, can change the entire good vs bad formula, strengthen your company, improve sales and improve your bottom line. Here are our tips for maximising those good reviews.

  1. Maximise your visibility online       
    Gone are the days when search engine optimisation (SEO) was purely about the words on your website. Google is now working tirelessly to ensure that good companies with great customer service are more visible online. Customer reviews can be used in your online content to add credibility and “expertise” and therefore improve the way Google views your content. But reviews can’t simply be shoe-horned into your site – they must be incorporated in a way that’s justifiable and organic.  Remember, you can no longer simply write your own reviews as Google tracks which reviews are left when and by whom. Real people leaving reviews in a believable way boost rankings – but fake ones hurt them.
  2. Boost your conversion rates
    Conversion rates are probably the single most important stat for an online business and your reviews can be used to make a significant impact. Research conducted by the Medill Spiegel Research Center has revealed that displaying reviews across your website has the potential to boost conversions by as much as 270%. Because of the weight users give to the views of others, simply seeing a good review boosts credibility and trust and encourages users to take the next step.
  3. Don’t hide bad reviews, use them to boost trust 
    Earlier we spoke about how many companies try to remove their bad reviews. This is not necessary. Everyone’s going to get a bad review from time to time, and your customers know this. Leaving your bad reviews up – along with your clear responses to try and fix the issues – has actually been shown to boost customer confidence. People like to know that if something goes wrong, you’ll do whatever you can to fix it. These bad reviews help them to see that far better than if you simply sweep them under the carpet.
  4. Good reviews can lead to better hires
    Your reviews can also be used to attract better staff. A 2024 study by Deloitte showed that 44% of millennials and 49% of Gen Zs consider a company’s values before accepting a job. People want to work for likeable companies. Including a few choice Google reviews on your website can therefore be used to create a more attractive employer brand and therefore lure in more applications, which will help you to find the best-of-the-best.
  5. Leverage reviews in the real world too
    Digital reviews almost never make it out of the digital sphere – and yet they can have just as much impact on paper as they do online. Including reviews in sales documents, pitch decks and press releases has been shown to generate credibility and boost trust. There’s also evidence that including reviews in press releases increases the likelihood they will be published at all.
The Bottom Line

Your reviews are some of the most valuable tools you can use and finding the money in your budget to maximise them is therefore essential. As your accountants, we can help you to refine your budgets and free up cash to improve all of your marketing efforts.

Why Use a Registered Tax Practitioner? Here’s What SARS Says…

WHY USE A REGISTERED TAX PRACTITIONER? Here's what SARS says...

"A tax professional is someone who solves a problem you didn't know you had in a way you don't understand."

- Carl Ally, adapted from a quote about architects

With tax compliance scrutiny intensifying and SARS increasing its detection capabilities with “the latest technology, artificial intelligence, and data science”, South African businesses face mounting pressure to keep their tax affairs 100% in order. To achieve and maintain this compliance, the expertise of a tax practitioner is invaluable – provided you are using a correctly registered practitioner.

Do I even need a tax practitioner?

The specialised knowledge that registered tax practitioners offer greatly benefits businesses and individuals to navigate more complex tax matters, including:

  • multiple income streams
  • multiple tax obligations (income tax, VAT, PAYE, SDL, UIF)
  • optimisation of complex deductions
  • industry-specific tax considerations
  • capital gains calculations
  • strategic tax planning opportunities.

Businesses that attempt to navigate tax matters alone or with unregistered help face significant risks like:

  • missed opportunities for legitimate tax efficiency
  • exposure to penalties and interest charges for errors or oversights
  • increased likelihood of verifications and audits
  • reputational damage
  • potential criminal liability in cases of serious mistakes and omissions.

Using a registered tax practitioner can significantly reduce these risks, free up time to focus on your core business, and eliminate the stress of tax-related challenges.

Why must a tax practitioner be registered?

Section 240(1) of the Tax Administration Act mandates that anyone who provides tax advice or completes tax returns on behalf of others must be registered with both SARS and a Recognised Controlling Body, such as SAIPA, SAICA, SAIT or CIBA.             

To provide clients with assurance that their tax affairs are in capable hands, these professional bodies impose stringent criteria on registered tax practitioners, ensuring they are:

  • qualified according to stringent industry-recognised criteria
  • up-to-date with current tax legislation and professional development
  • bound by professional codes of conduct or ethics
  • accountable to a professional regulatory body
  • able to provide recourse for substandard service or fraudulent activities
  • covered by Professional Indemnity insurance
  • supported by a technical support team for resolving complex tax issues. 
More benefits of using a registered tax practitioner
  • Tax clarity and tailored tax advice: As SARS updates requirements and introduces new compliance measures, a registered practitioner can expertly advise your business in the evolving tax landscape.
  • Strategic advice on legitimate tax efficiency measures like tax planning and structuring, industry-specific tax opportunities for your business, and additional services to streamline tax compliance.
  • Critical protection is provided by ensuring accurate and compliant tax calculations and returns, maintaining documentation for potential audits, and proactively identifying and addressing potential compliance issues.
  • Direct representation during SARS engagements including lodging and managing disputes, and experienced negotiation capabilities.
  • Insurance cover: A registered tax practitioner carries Professional Indemnity insurance – providing an additional layer of protection should errors occur.  
Maximise value from our tax team

As SARS intensifies its compliance efforts, the guidance and protection offered by our professional tax team will become increasingly valuable.  Employing a registered tax practitioner is about much more than meeting a compliance requirement – it’s a strategic advantage that delivers expertise, protection, and peace of mind and helps secure your business’s reputation and financial future.

How do I know if a Tax Practitioner is registered?
  1. Ask them for their PR Number.
  2. Visit SARS’ Tax Practitioner Verification Link.
  3. Enter the PR Number to confirm ongoing registration.

Budget 2025: Your Tax Tables and Tax Calculator

BUDGET 2025: Your Tax Tables and Tax Calculator

When taxpayers are aggrieved by an assessment or a decision that is subject to objection and appeal, they have a right to dispute it.

- SARS

In its current form, Budget 2025 will effectively bring about an increase in personal income tax by not adjusting the tables for tax rates, rebates and credits, while also implementing substantial increases in ‘sin’ taxes and introducing a 0.5% VAT increase on 1 May 2025 and another 0.5% increase effective 1 April 2026. This selection of official SARS Tax Tables and other useful resources will help clarify your tax position for the new tax year.

INDIVIDUAL TAXPAYERS:  TAX TABLES UNCHANGED SINCE 2023

 

Taxable Income (R) 

Rate of Tax (R)

1 – 237 100 

18% of taxable income

237 101 – 370 500

42 678 + 26% of taxable income above 237 100

370 501 – 512 800

77 362 + 31% of taxable income above 370 500

512 801 – 673 000

121 475 + 36% of taxable income above 512 800

673 001 – 857 900

179 147 + 39% of taxable income above 673 000

857 901 – 1 817 000

251 258 + 41% of taxable income above 857 900

1 817 001 and above

644 489 + 45% of taxable income above 1 817 000

INDIVIDUAL TAX REBATES

Type

 

Primary

R17 235

Secondary (65 and older)

R9 444

Tertiary (75 and older)

R3 145

INDIVIDUAL TAX THREASHOLDS

Age

 

Under 65

R95 750

65 to 75

R148 217

75 and older

R165 689

Source: SARS

SIN TAXES RAISED

EXCISE DUTIES

Excise duties on 

2025 Increases

2024 Increases

2023 Increases

Malt beer per 340ml can

16c 

14c 

10c 

Unfortified wine per 750ml bottle

29c

28c

18c

Fortified wine per 750ml bottle

48c

47c

31c

Sparkling wine per 750ml bottle

90c

89c

9c

Ciders and alcoholic fruit beverages per 340ml can

16c

14c

10c

Spirits per 750ml bottle

R5.97

R5.53

R3.90

Cigarettes per packet of 20

R1.04

97c

98c

Nicotine, non-nicotine solution for electronic delivery systems per ml

14c per ml

14c per ml

–

Cigarette tobacco per 50g

R1.16

R1.09

R1.10

Pipe tobacco per 25g

50c

57c

33c

Cigars per 23g

R8.49

R9.51

R5.47

Source: Adapted from Budget 2025 People’s Guide

BUSINESSES: CORPORATE TAX RATES UNCHANGED

CORPORATE TAXES

Type

Taxable Income (R)
Taxable Turnover (R)*
Annual Revenue **

Rate of Tax (R)

Companies – Income Tax

All

27% of taxable income

Small Business Corporations: Income Tax

1 – 95 750

0% of taxable income

95 751 – 365 000

7% of taxable income above 95 750

365 001 – 550 000

18 848 + 21% of taxable income above 365 000

550 001 and above

57 698 + 27% of the amount above 550 000

Micro Businesses: Turnover Tax

1 – 335 000*

0% of taxable turnover

335 001 – 500 000*

1% of taxable turnover above 335 000

500 001 – 750 000*

1 650 + 2% of taxable turnover above 500 000

750 001 and above*

6 650 + 3% of taxable turnover above 750 000

Multinational Corporations: Global Minimum Corporate Tax

Annual revenue exceeding €750 million**

Minimum 15%

Source: Adapted from SARS’ Budget Tax Guide 2025

PROPOSED VAT INCREASES

VALUE ADDED TAX (VAT)

Date

2018-2024 

01 May 2025

01 April 2026

VAT Rate

15%

15.5%

16%

Source: Adapted from Budget 2025 People’s Guide

TRANSFER DUTY: 10% UPWARD ADJUSTMENT FROM 1 APRIL

TRANSFER DUTIES: 2025

Value of Property

Rate of Duty

R0 to R1 210 000

0% of property value

​R1 210 001 to R1 663 800

3% of property value above R1 210 000

R1 663 801 to R2 329 300

R13 614 + 6% of property value above R1 663 800

R2 329 301 to R2 994 800

R53 544 + 8% of property value above R2 329 300

R2 994 801 to R13 310 000

R106 784 + 11% of property value above R2 994 800

R13 310 001 and above

R1 241 456 + 13% of property value above R13 310 000

Source: SARS’ Budget Tax Guide 2025

How much will you be paying in income, petrol and sin taxes?

Use Fin 24’s four-step Budget Calculator here to find out the monthly and annual impact on your income tax, as well as what you will be paying in fuel and sin taxes. Bear in mind, however, that the best way to fully understand the impact of the proposals in Budget 2025 on you and your business is to reach out to us for professional advice.

Budget 2025: How It Affects You and Your Business

BUDGET 2025: How it affects you and your business

“… the economy needs to grow much faster and in an inclusive manner. This is the central objective of the current administration."

- Finance Minister Enoch Godongwana | Budget 2025

The proposed VAT increase of 0.5% in 2025 and another 0.5% in 2026 is the big news from Budget Speech 2025. The increase is strongly opposed by political parties within and outside the GNU – but it is only one way in which individual and corporate taxpayers will bear the brunt of another substantial Budget shortfall.  Here’s a brief overview of how the tabled Budget 2025 proposals will impact individuals and businesses (if they come into effect). Professional tax advice has never been more important.

The tabling of Finance Minister Enoch Godongwana’s fourth Budget in February was marked by an unprecedented three-week postponement, following a deadlock around the original Budget proposal to increase VAT by 2%.  A revised Budget, finally tabled on 12 March, proposed a 0.5% increase from 1 May 2025, with a second 0.5% VAT increase from 1 April 2026 – but the proposal was still not enough to satisfy most other political parties.  In his Budget Speech, the finance minister called the Budget proposals “a bold and pragmatic approach” to ensure the economy grows “much faster and in an inclusive manner”. He admitted that the economy has stagnated for over a decade, with GDP growth averaging less than 2%, while forecasts for medium-term GDP growth are a dismal 1.8%.

While the powers that be attempt to reach consensus on the Budget 2025 proposals, businesses and individuals in South Africa will find little support from the fiscus to survive these low-growth economic conditions.  This is evident from our overview below of the most pertinent Budget 2025 proposals. In a nutshell, the finance minister is trying to cover another substantial Budget shortfall by directly and indirectly increasing the tax burden on corporate and individual taxpayers.

Budget proposals that will impact you
  • The 0.5% VAT increases proposed for 2025 and 2026 will impact every South African, while disproportionately affecting lower-income households strained by high electricity costs, inflation and interest rates in a weak economy. To alleviate their impact on poor households, the list of zero-rated food items is extended to include canned vegetables, dairy liquid blends, and organ meats from sheep, poultry and other animals.
  • Personal income tax brackets will not be adjusted for inflation for a second year running. This means that, like last year, individuals who receive a salary increase will again pay more tax, and could be pushed into a higher tax bracket.
  • No inflation adjustments were proposed for tax rebates or medical tax credits – which once again translates into more tax payable by individuals.
  • Above-inflation increases in the excise duties on alcohol (6.75%) and tobacco (4.75 – 6.75%) are no surprise. This means that with immediate effect, the duty on:
    • a 340ml can of beer increases by 16c
    • a 750ml bottle of unfortified wine goes up by 29c
    • a 750ml bottle of fortified wine goes up by 48c
    • a 750ml bottle of spirits will increase by R5.97
    • a 23g cigar goes up by R8.49
    • a pack of 20 cigarettes rises by R1.04
    • vaping products increase by 14c per millilitre

  • Changes to the rules regarding the tax treatment of cross-border retirement funds are proposed.
  • A one-year extension in the R370 social relief of distress (SRD) grant and above-inflation increases ranging from R30 to R130 per month in other social grants will provide minimal relief to the poorest South African households.
  • SARS has been allocated R3.5 billion this year and an additional R4 billion over the medium term to enhance its tax collection capabilities, so taxpayers can expect increased scrutiny and administration.
Budget proposals that will impact your business

The 0.5% VAT increases proposed for 1 May 2025 and 1 April 2026 will certainly impact all companies in South Africa’s struggling economy, with a disproportionately negative impact on the small and micro businesses that are crucial to economic growth. 

  • VAT hikes directly raise the cost of goods and services, impacting competitiveness and profitability.
  • Higher prices resulting from the VAT increase will reduce consumer purchasing power in an already-constrained economy.
  • The VAT increase could trigger inflationary pressures, further eroding household incomes and potentially forcing an interest rate hike.
  • Two VAT increases over two years will also result in a significant administrative burden on businesses to implement the required changes to their systems.
  • Carbon taxes increased from R190 to R236 per tonne on 1 January, while the temporary incentive for renewable energy introduced in 2023 has not been extended.
  • From 1 April 2025, the formula to calculate the employment tax incentive and the eligible income bands will be adjusted.
  • It is proposed that the sunset date for the urban development zone tax incentive be extended by five years to 31 March 2030.
  • The Budget proposes to cancel the inflationary increase in the health promotion levy, and that the ad valorem excise duties on smartphones are limited to higher value phones.
Some good news
  • The general fuel levy and the Road Accident Fund levy will not be increased again this year, providing tax relief of R4 billion. However, the carbon tax on fuel and diesel will increase. Budget 2025 also proposes an adjustment to the diesel refund for the primary sector for the next tax year.
  • Property buyers will benefit from an upward adjustment of 10% in transfer duty brackets from 1 April 2025.
  • A R1 trillion investment over the next three years in public infrastructure spending, focussed on transport and logistics, energy, and water and sanitation, should positively impact on the economy.
  • Besides the proposals detailed above, Budget 2025 made no mention of a wealth tax or the National Health Insurance (NHI).

    In a media interview following the Budget Speech, the minister said that if the economy does well, the VAT increase in 2026 may not be necessary.
How best to manage your taxes going forward?

There is (at time of writing) uncertainty as to whether or not the Minister will proceed with his proposed tax changes – even if he fails to garner sufficient political support to ultimately ensure their adoption by parliament.  If he does proceed, it’s equally unclear how long they will be valid for. Regardless, expect a lot of political manoeuvring and perhaps some major changes in the weeks ahead!  As tax collection remains government’s main source of income (and SARS’ tax collection capabilities have been extended with billions in funding), you would be well-advised to rely on our expertise and advice to determine the impact of Budget 2025 on your tax affairs.

5 Things to Consider When Buying vs Leasing Equipment

5 THINGS TO CONSIDER WHEN BUYING VS LEASING EQUIPMENT

I do not gather things, I prefer to rent them rather than to possess them.

- Jerzy Kosinski

As a business owner or financial manager one of the most important decisions you will make is whether to buy or lease the equipment your business needs to operate.  This decision could have far-reaching financial consequences, particularly for smaller firms – so it must be taken seriously. Here are five things to consider when deciding whether to lease or buy.

Deciding whether to buy or lease equipment can sometimes seem like an impossible choice. There are so many factors at play that it can feel like whatever you do will be wrong. We’ve put together a short list of five things to consider that should make the process a little easier.

  1. When do you need the money?
    Leasing has lower up-front costs than buying, but in the long term could end up costing your company more. Leasing can make it easier to conserve working capital and maintain a stronger cash flow, especially in the early days. However, if you buy, you will eventually pay the equipment off meaning your long-term costs will drop.

  2. Are you going to need to upgrade?
    Will the equipment you are looking for need to be upgraded? Or is it something you can use, as is, for years? Leasing equipment often comes with the option of upgrading it on the spot when newer versions come out. This gives companies more flexibility and the chance to be fully up-to-date at all times. If you’re sure of the long-term efficacy of a machine, however, it may make more sense to buy.

  3. Are there tax benefits?
    Some products will provide more benefits come tax time than others with deductions on offer for both leasing and buying. As your accountants we can help you to understand the exact implications of renting/buying your particular equipment and the amount and timing of tax relief that is available

  4. Do you want to pay for maintenance?
    Leasing equipment can often mean that you don’t have to worry about maintaining it. While this will undoubtedly be built into the cost of your leasing contract, there’s great comfort in knowing that the maintenance is taken care of – and that if something goes really wrong you can get an immediate replacement. Do just check your lease agreement for any exclusions or restrictions – there is often an exclusion for “damage due to client negligence,” for example.

  5. Do you need to customise your equipment?
    If you lease your equipment, you probably won’t be able to customise it. It makes sense that the rental company needs to be able to lease the equipment to someone else when you’re done with it. If you own a machine you can generally do with it as you like, meaning you can take care of your special requirements.
The Bottom Line

Choosing between leasing and buying ultimately depends on your business’ unique set of circumstances.
To get the best advice please consult with your accountant – we’ll be able to lay out all the financial repercussions of your decision.

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