The 2025/2026 budget includes the following tax proposals:
- Additional anti-avoidance measures would be introduced into section 8EA of the Income Tax Act relating to third-party backed shares.
- The definition of “hybrid-equity instruments” in section 8E of the Income Tax Act would be amended to address schemes that circumvent the application of the anti-avoidance provisions in relation to preference shares.
- Various amendments are proposed to the interest limitation provisions contained in section 23N and section 23M of the Income Tax Act.
Read a March 2025 report prepared by the KPMG member firm in South Africa that details further tax proposals concerning:
- Individual income tax (including capital gains tax, allowances, fringe benefits, exemptions, deductions, medical and disability expenses)
- Tax-free savings and investment accounts
- Taxation of lump sum benefits
- Payroll taxes
- Value added tax (VAT)
- Corporate income tax
- Tax incentives
- Provisional tax
- International tax
- Customs and excise
- Environmental taxes
- Transfer duty and securities transfer tax
- Estate duty and donations tax