Tax

Can a business claim a tax deduction for money it pays as a bribe or kickback? Under section 23(o) of the Income Tax Act, the answer is no. Kickbacks are not tax deductible. The provision was introduced in 2005 to support South Africa’s anti-corruption efforts. It denies a tax deduction for any payment that amounts to corrupt activity under our main anti-corruption statute, the Prevention and Combating of Corrupt Activities Act 12 of 2004 (the PCCAA).

Retirement annuity contributions can carry forward when taxpayers do not claim them. However, most taxpayers never check whether this happened. From today, taxpayers who received a South African Revenue Service (SARS) auto-assessment this month can submit a corrected return if they find something inaccurate or missing. One of the most commonly overlooked corrections involves a contribution that a taxpayer made months, or sometimes years before this year's assessment was generated.

South Africa's new South African Revenue Service (SARS) Traveller Declaration is part of a global shift that's redrawing the business travel checklist. Border and customs compliance has always been something travellers dealt with at the airport. However, that is no longer the case.

More and more high-net-worth South Africans living abroad realise that the assumption that physical emigration ends their South African tax exposure is not merely incorrect. It is also becoming increasingly expensive. Many expatriates become aware of the consequences only when they receive an unexpected and substantial assessment from the South African Revenue Service (SARS). The reality is that leaving the country is not a tax strategy. South Africans continue to make what can be described as a “silent exit”.

The role of the nine-to-five is changing, and South Africa’s financial reality reflects this shift. According to the South African Reserve Bank, household debt levels remain high at around three-quarters of disposable income. Meanwhile, savings rates remain persistently low. This leaves many households with little room to absorb shocks, build long-term security and provide for retirement.

The five-year lock-in period on South Africa's Section 12J hospitality investments is over. Across the country, investors who entered these vehicles for the generous upfront tax deduction are now facing a far more sobering reality. Hospitality investors face distressed assets, a near-absent secondary market and a Capital Gains Tax (CGT) liability that is calculated not on their actual return, but on every Rand they receive at exit.

Two recent High Court judgments, in which the powers of the South African Revenue Service (SARS) came under close scrutiny, have delivered a clear message. Despite the wide powers granted under the Tax Administration Act, No. 28 of 2011 (TAA), those powers remain discretionary. However, they are not unfettered. This marks an important instance of court scrutiny of SARS’ powers.

Time has run out for non-compliant trusts. Since 4 May 2026, the South African Revenue Service (SARS) has imposed administrative penalties on trusts with outstanding tax returns. SARS levies these penalties monthly. In some cases, penalties may reach R16,000 per outstanding return.

Foreign nationals who own fixed property in South Africa and derive rental income from it are increasingly facing new compliance hurdles when accessing or transferring those funds. Recent feedback from multiple South African banks indicates tighter access to non-resident bank accounts when account holders do not meet additional tax compliance requirements. As a result, foreign property owners could temporarily find themselves out of pocket under these new banking and tax rules.

The amount South African residents can send offshore without South African Revenue Service (SARS) clearance has remained unchanged since 2011. However, that is about to change. On 25 February, Finance Minister Enoch Godongwana announced that the Single Discretionary Allowance (SDA) will increase from R1 million to R2 million per person each calendar year.