In his National Budget Speech, Finance Minister Enoch Godongwana placed significant emphasis on the importance of tax compliance for South Africa’s financial health. The South African Revenue Service (SARS) will receive R3.5 billion for the current year, with a further R4 billion allocated for the next three years, aimed at enhancing technology and tackling tax evasion.
Godongwana urged all South Africans to meet their tax obligations, stressing that the funds collected are crucial to sustaining government services. He acknowledged those who comply, calling on others to take responsibility, noting that investments in SARS will lead to long-term improvements.
Notably, SARS has made considerable progress in streamlining its operations. The introduction of auto-assessments for non-provisional taxpayers during the 2024/25 season resulted in 4 765 753 automatic assessments, a 24.94% increase from the previous year. This shift has simplified tax filing, benefitting both the public and SARS itself.
The budget also proposes a gradual increase in the value-added tax (VAT) rate. Rather than the initial 2-percentage-point hike, VAT will rise by 0.5 percentage points starting on 1 May 2025, with a second 0.5-point increase in 2026. This marks the first VAT increase since 2018.
Understanding tax compliance has never been more vital. The CRS & FATCA Compliance, Automation, and Industry Readiness Conference in Cape Town on 26 March 2025 will bring together businesses, regulators, and financial experts to tackle the latest tax compliance issues. The conference will focus on the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA), essential to global tax practices.
“As South Africa grapples with fiscal challenges and evolving tax regulations, staying informed and prepared is crucial,” says Daniel Farías, Head of Sales & Marketing at Trans World Compliance. “The conference will provide invaluable insights into compliance automation and readiness, essential for aligning with global standards and ensuring efficient tax practices.”
Attending this conference is pivotal for stakeholders aiming to align with global standards and ensure efficient tax practices. It offers practical training on the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA), both integral to international tax compliance.
Farías says that as Minister Godongwana’s budget takes hold of the nation, stakeholders across sectors have keenly observed the proposed fiscal measures and their implications. “Ensuring robust tax compliance remains a cornerstone of South Africa’s economic strategy, vital for sustainable growth and development,” he adds.
