The South African Budget for 2026/27 was recently presented and is expected to be approved by Parliament shortly. While the major tax rates remain largely unchanged, several important thresholds and adjustments have been introduced.

For many businesses and taxpayers, it is often these smaller changes to thresholds and exemptions that have the biggest practical impact on cash flow, tax planning, and compliance.

At Smarter Accounting, we have prepared a short summary to help business owners and individuals understand the key points.

Key Budget Highlights

Some of the most relevant changes announced in the 2026/27 Budget include:

VAT Registration Threshold

• Adjustments to the VAT registration threshold may affect when businesses are required to register for VAT.

Turnover Tax Changes

• Updates to the Turnover Tax system aimed at supporting small businesses and micro-enterprises.

Tax Rebates and Exemptions

• Changes to certain rebates and exemptions that may affect individual taxpayers and small businesses.

Compliance and Reporting

• Continued focus by SARS on compliance, reporting accuracy, and closing the tax gap.

What This Means for Business Owners

For many small and medium-sized businesses, these updates create an opportunity to review:

• Whether VAT registration is required or beneficial
• Whether Turnover Tax or the standard tax system is more appropriate
• Whether current accounting systems and reporting processes are up to date
• Whether tax planning opportunities are being missed

Taking the time to review these areas early in the financial year can help avoid unexpected tax liabilities and compliance issues later on.

Download the Full Budget Summary

We have prepared a short brochure summarizing the key tax changes in the 2026/27 Budget.

📎 Download the full Budget Highlights Summary here: