Boards are operating under increased scrutiny, with stronger regulatory enforcement, rising stakeholder expectations, and greater personal accountability for directors. In this environment, it is no longer sufficient to rely on high-level commitments. Boards are expected to demonstrate structured decision-making, clear governance processes, and effective oversight of environmental, social, and governance (ESG) risks.
The latest Monetary Policy Review from the South African Reserve Bank highlights a more uncertain economic environment, with inflation risks shifting to the upside despite recent progress in stabilising prices.
The latest Operation Vulindlela progress report highlights continued momentum in South Africa’s structural reform agenda, with a focus on addressing constraints to growth, investment, and service delivery.
The Companies and Intellectual Property Commission (CIPC) has intensified its enforcement of statutory compliance through a renewed focus on the Compliance Checklist, signalling a firmer regulatory stance toward companies, close corporations, and non‑profit organisations. This initiative forms part of CIPC’s broader mandate to strengthen corporate governance, transparency, and accountability within South Africa’s business environment.
Dr Ngobani Johnstone Makhubu Appointed as New SARS Commissioner
A New Chapter in South African Corporate Governance
The latest global climate summit, COP30, confirmed a shift that South African businesses are already experiencing climate change is no longer just a policy issue it is a commercial one. The focus has moved from long‑term targets to implementation, resilience and capital flows, with direct implications for companies of all sizes.
South Africa’s 2026 Budget highlights government’s spending priorities over the medium term, emphasising the need to balance fiscal sustainability with continued investment in public services and infrastructure.
South Africa’s 2026 Budget Speech introduced a series of tax adjustments aimed at maintaining revenue stability while offering targeted relief to households and businesses. While the overall tax framework remains largely unchanged, several thresholds and allowances have been updated, mostly in line with inflation.
South Africa’s 2026 Budget highlights the importance of restoring the financial and operational health of public sector institutions, particularly state-owned companies responsible for delivering critical infrastructure and services.
At its first policy meeting of 2026, the Monetary Policy Committee (MPC) of the South African Reserve Bank held the repurchase (repo) rate steady at 6.75%, maintaining a cautiously neutral stance in the face of global and domestic economic uncertainties. This decision, effective from the January 29 meeting, reflects a backdrop of easing inflation and stabilising growth, but also persistent risks in the external environment.
South Africa has achieved a significant milestone in its financial governance journey with its removal from the European Union’s list of High-Risk Third Country Jurisdictions, a designation that took effect on 29 January 2026. The announcement was welcomed by the National Treasury, which highlighted the development as a positive step for reducing barriers to international financial engagement.
The South African Government has officially announced that the 2026 National Budget Speech will be delivered by Finance Minister Enoch Godongwana on 25 February 2026.
1. Compliance Crackdown Intensifies
1. Tax Statistics and Revenue Performance
The 30th UN Climate Change Conference (COP30), held in Belém, Brazil, was billed as the “Implementation COP,” aiming to turn climate pledges into action. While progress was made on several fronts, the summit exposed deep divides on critical issues.
Taxpayers should be alert to a rising phishing threat - fraudsters are sending out fake PDF letters with subjects such as “LEGAL RULING SUMMON DEMAND AS AT 21 10 2025” (though the subject line may vary).
South Africa’s tax authorities are preparing to implement new reporting standards that will bring cryptocurrency transactions squarely within the formal tax net. The South African Revenue Service (SARS) has released draft regulations to adopt the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD), alongside updates to the Common Reporting Standard (CRS).
Finance Minister Enoch Godongwana will deliver South Africa’s Medium-Term Budget Policy Statement (MTBPS) on 12 November, outlining the government’s fiscal and economic plans for the next three years. Often referred to as the “mini-budget,” the MTBPS provides a crucial update between February’s main Budget speeches, setting the tone for spending, borrowing, and reform priorities.
The forthcoming King V Code of Corporate Governance marks a major milestone in South Africa’s governance landscape. Developed under the auspices of the Institute of Directors in South Africa (IoDSA), King V is set to launch on 31 October 2025, following a national consultation process earlier this year. The draft was released for public comment on 24 February 2025, with submissions closing on 4 April 2025.
Recent proposals from the National Treasury suggest a major shift in how foreign pensions and retirement benefits are taxed in South Africa. Currently, under Section 10(1)(gC) of the Income Tax Act, lump sums, pensions and annuities from foreign sources tied to past employment are exempt from income tax for South African residents.
South Africa is on the path to a real-time VAT reporting system, with full implementation expected by 2028. This will see a shift away from periodic self-reporting toward e-invoicing and direct, automated data transmission to SARS.
South Africa’s VAT registration threshold has remained unchanged at R1 million in annual turnover since 2009. In the intervening years, inflation has eroded the real value of this threshold. If it had been adjusted annually, analysts estimate it would now be closer to R2.1 million.
A forthcoming legislative change could offer relief to South African taxpayers, but only under stringent conditions. Under the proposed amendments in the 2025 Draft Tax Administration Laws Amendment Bill (TALAB), individuals and businesses may be allowed to suspend payment on estimated assessments issued by SARS, provided certain criteria are met.
