📢 2025/2026 Budget Speech: What It Means for Your Business & Taxes 🇿🇦

The much-anticipated 2025/2026 Budget Speech has officially been tabled by the Minister of Finance, bringing with it a mixture of hope, caution, and reform. As always, understanding what the budget means for individuals, business owners, and investors is crucial in shaping your financial strategy for the year ahead.

At BizFin Group, we’ve broken down the key points and provided expert insights to help you make informed decisions. Here’s what you need to know:

📌 1. Personal Income Tax: Inflation Relief on the Horizon

To ease the financial burden on households, the government has kept personal income tax brackets and rebates unchanged from last year.

👉 Tip: Use this opportunity to reassess your PAYE calculations and update your tax planning accordingly.

📌 2. Corporate Tax: No Change, But New Compliance Standards

The corporate income tax rate remains at 27%, as per the prior year’s reduction. However:

• New BEPS (Base Erosion and Profit Shifting) compliance regulations are now being enforced.
• SARS will increase audits on multinational structures and inter-company loans.

👉 BizFin’s compliance team is ready to assist businesses with updated transfer pricing documentation and structuring advice.

📌 3. VAT & Indirect Taxes: Rate Hikes, But Be Cautious

The Value-Added Tax (VAT) increased from 15% to 15,5% from 1^st of May 2025.

• Increased emphasis will be placed on e-commerce VAT compliance.
• Excise duties on alcohol and tobacco have been increased by between 6% and 10%.
• Plastic and carbon taxes see modest increases in line with environmental policy shifts.

📌 4. Small Business Relief & Incentives

SMME sector:

• The Turnover Tax thresholds remain the same as prior year.
• A new digital skills development incentive has been introduced to support startups hiring young, digitally skilled workers.
• Revised grant schemes for township and rural enterprises will be piloted.

👉 Need help qualifying? We assist clients with accessing grants and optimizing their tax position as an SMME.

📌 5. Trusts, Estates & High Net Worth Individuals

There are tightened regulations around trusts and estate planning, including:

• Stricter reporting requirements for beneficial ownership transparency.
• Increased scrutiny on offshore structures and undeclared assets.
• A proposal to introduce a lifetime wealth disclosure regime (subject to public comment).

👉 Our Trust Services Division manages over 800 trusts—speak to us about aligning your structures with the latest regulations.

📌 6. Public Spending & Economic Growth Outlook

• The government remains committed to fiscal consolidation, with a primary surplus targeted for 2026.
• Major investments continue in energy infrastructure, rail, and digital connectivity.
• Debt-to-GDP ratio is projected to stabilize at 72.4% by 2027.

While economic growth is forecast at 1.6%, risks remain due to global uncertainty, persistent load-shedding, and interest rate volatility.

📌 7. BizFin’s Expert Recommendations1

1. Review your business structure to ensure compliance with new corporate and trust regulations.
2. Take advantage of SMME incentives and government grants while they are available.
3. Schedule a tax consultation before the mid-year SARS deadline to stay ahead of the curve.

🧭 Final Thoughts: Stay Informed, Stay Compliant

The 2025/2026 Budget Speech represents both opportunity and responsibility. Whether you’re managing a family trust, considering a startup, or navigating complex compliance challenges, it pays to have the right team on your side.

At BizFin Group Team are ready to help you turn policy into strategy.