Tax

In a significant win for taxpayers on the South African Revenue Service’s (SARS) “narrow” approach to the ability to claim input Value-Added Tax (VAT), the Supreme Court of Appeal (SCA) recently ruled in favour of Woolworths Holdings (Woolworths), the group holding company, affirming its right to claim over R8 million in input VAT.

South Africa’s revamped carbon tax policy, coming into effect in 2026, signals a decisive shift in the country’s climate and energy landscape. With stricter emissions thresholds and an expanded scope for carbon offsets, the carbon tax overhaul is set to drive major investment in renewable energy. It will also reshape how businesses source electricity. This policy evolution opens new doors, even though some hurdles remain.

Charitable giving is a powerful way to leave a lasting legacy. You can make an impact that extends far beyond your lifetime. Include donations to causes close to your heart when writing your will. This practice allows you to give back meaningfully. Sadly, it remains underutilised.

In its drive to meet the ambitious 2025/26 revenue estimate of R1.986 trillion, the South African Revenue Service (SARS) has made its expectations clear. Timely, transparent and accurate tax submissions are now the new normal. Central to this approach is the expanded use of third-party data. This applies broadly, including trusts and Non-Profit Organisations (NPOs).

The global push for sustainability is reshaping industries. It is compelling nations to embrace cleaner technologies. South Africa now stands at a critical crossroads. The 150% tax incentive for Electric Vehicle (EV) manufacturing, effective from 1 March 2026, offers a major opportunity. So does the impending Carbon Management Act, set to take effect later that year.

It goes without saying, but South Africa faces a significant and concerning unemployment rate. The 2025 State of the Nation Address reiterated South Africa’s persistent employment challenges. In particular, the Quarterly Labour Force Survey reported an unemployment rate of 31.9% in Q4 of 2024.

We note the decision by the Minister of Finance to increase the fuel levy by 4% - 16 cents per litre for petrol and 15 cents for diesel. This increase will directly affect consumers. Transporters cannot absorb these additional costs without harming their bottom line and threatening business sustainability.

We have announced 16 May 2025 as this year’s Tax Freedom Day: the moment when hardworking South Africans finally stop toiling to pay their taxes, and start earning for themselves. We have marked this day since 1997 to shine a light on the tax burden shouldered by ordinary taxpayers. Tax Freedom Day on 16 May means that the average South African has laboured 136 days – over a third of the year – to fund government spending.

The tax court, in a reportable judgment handed down on 13 January 2025, considered whether raising fees are finance charges which are similar to interest, and therefore, tax-deductible on the same basis as interest.

The Constitutional Court judgement in Greyvensteyn vs Commissioner for SARS and Others has been welcomed by South African Revenue Service (SARS)! Serving to reaffirm the constitutionality of SARS holding individuals personally liable for company debts, the Greyvensteyn judgement emphasises this point. It also supports SARS pursuing recovery from those persons. The judgement highlights the importance of tax revenue collection