Africa-Press – South-Africa. In 2026, South African taxpayers can expect some major changes, including tighter audits, possible new taxes and ongoing scrutiny of cross-border and high-net-worth individuals.
This is according to Tax Consulting SA senior tax consultants Rehnu Vallabh and Hlengiwe Mkhize, who told Daily Investor that taxpayers can expect key developments in the coming year.
“SARS introduced some noteworthy tax features in 2025, which focused on strengthening tax compliance, improving user experience on eFiling, and enhancing SARS’s audit capabilities,” Vallabh and Mkhize said.
The Express Access feature, introduced in 2025, enabled taxpayers to view and address their current and historical tax compliance, update their banking and contact details, and initiate auto-assessments.
Another user-friendly feature that SARS has adopted for the eFiling system is the Expanded Auto-Assessment Eligibility option, which has also been extended to certain provisional taxpayers.
Vallabh and Mkhize explained that this feature was aimed more towards taxpayers who made two-pot retirement fund withdrawals.
“The completion of the RAV01 form on the eFiling platform enabled SARS to track the taxpayer’s exit and re-entry into the South African tax system, which may have resulted in further audits,” they said.
They added that the 2025 tax year also brought changes relating to taxpayers’ residency status, whereby taxpayers were presented with resident and non-resident wizard questionnaires (section 9H Change of Residence).
To advance SARS’ rigorous audit efforts, the taxman also introduced a requirement that taxpayers who previously ceased their South African tax residency declare a Reinstatement Date of RSA Tax Residency.
Looking ahead to 2026, Vallabh and Mkhize said taxpayers can expect several key developments to shape South Africa’s tax landscape.
“National Treasury recently released the draft National Online Gambling Tax Discussion Paper for public comment, whereby the draft addresses the growth of online gambling in South Africa,” they said.
“This is currently being driven by widespread internet access, mobile betting apps, and the Covid-19 shift toward digital forms of gambling.”
The National Treasury believes that this growth brings social harms, including problem gambling and other negative externalities, which may create costs for society and justify regulation and taxation.
2026 tax changes
Vallabh and Mkhize highlighted four potential tax changes South Africans can expect to see in the coming year.
The first is a new national tax on online and interactive gambling, specifically a 20% tax on gross gambling revenue from online betting and interactive gambling.
“This 20% national tax would be in addition to existing provincial gambling levies/taxes, which typically apply today under provincial gambling regulation,” they said.
“Treasury estimates the tax could raise roughly R10 billion in additional revenue for the national government – reflecting the significant scale of online gambling activity.”
Vallabh and Mkhize noted that the National Treasury has also proposed raising the value-added tax (VAT) rate from 15% to 15.5%, effective 1 May 2025, and to 16%, effective 1 April 2026.
However, those proposed increases were withdrawn, which means that the VAT rate may remain at 15% in 2026.
“But given fiscal pressures, a future increase has not been ruled out,” they warned. “Conservative tax planning for clients should take a potential VAT hike into account.”
SARS has also announced further enhancements to modernise its systems, including data analytics, artificial intelligence, and modernised systems, Vallabh and Mkhize said.
These enhancements are aimed at improving detection, collection of outstanding taxes and more rigorous audits and compliance enforcement in 2026.
This will affect high-net-worth individuals, trusts, and complex structures in particular, they explained.
Finally, they highlighted that the broader global minimum tax regime (Pillar Two) is reshaping how multinationals are taxed worldwide, which influences cross-border structuring, profit allocation, and repatriation strategies.
“As South Africa adopts these rules, South-African-resident clients involved in international structures will need to reassess,” they said.
More countries are strengthening tax enforcement and transparency through, for example, information exchanges and stricter compliance.
This means that cross-border clients – such as expatriates, clients with foreign pensions or assets abroad – will likely face increasing scrutiny, Vallabh and Mkhize cautioned.
“In 2026, taxpayers can expect SARS to continue strengthening its enforcement, verification and compliance activities, supported by increasingly sophisticated technology,” they said.
“Taxpayers may also see further enhancements to eFiling and mobile platforms, aimed at improving accuracy, reducing errors, and ensuring seamless access to compliance functions.”
In line with SARS’ broader compliance philosophy, greater emphasis will be placed on proactive verification of third-party data, such as retirement fund withdrawals, investment income, and international transactions.
There will also be more focus on ongoing monitoring of taxpayers who have ceased or reinstated South African tax residency, Vallabh and Mkhize added.
“Overall, 2026 is expected to bring a more digitally driven, data-intensive SARS environment, where timely, transparent and accurate tax reporting will be increasingly essential,” they said.
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