Budget 2025, if adopted by Parliament, will effectively bring about an increase in personal income tax by not adjusting the tables for tax rates, rebates and credits, while also implementing substantial increases in ‘sin’ taxes and introducing a 0.5% VAT increase on 1 May 2025 and another 0.5% increase effective 1 April 2026.
This selection of official SARS Tax Tables and other useful resources will help clarify your tax position for the new tax year.
Individual taxpayers: Tax tables unchanged since 2023
Source: SARS
Source: SARS
Source: SARS
Sin taxes raised
Source: Adapted from Budget 2025 People’s Guide
Businesses: Corporate tax rates unchanged
Source: Adapted from SARS Budget Tax Guide 2025
Proposed VAT increases
Source: Adapted from Budget 2025 People’s Guide
Transfer duty: 10% upward adjustment from 1 April
Source: SARS’ Budget Tax Guide 2025
How much will you be paying in income, petrol and sin taxes?
Use Fin 24’s four-step Budget Calculator here to find out the monthly and annual impact on your income tax, as well as what you will be paying in fuel and sin taxes.
“… the economy needs to grow much faster and in an inclusive manner. This is the central objective of the current administration.” (Finance Minister Enoch Godongwana – Budget 2025)
The tabling of Finance Minister Enoch Godongwana’s fourth Budget in February was marked by an unprecedented three-week postponement, following a deadlock around the original Budget proposal to increase VAT by 2%.
A revised Budget, finally tabled on 12 March, proposed a 0.5% increase from 1 May 2025, with a second 0.5% VAT increase from 1 April 2026 – but the proposal was still not enough to satisfy most other political parties.
In his Budget Speech, the finance minister called the Budget proposals “a bold and pragmatic approach” to ensure the economy grows “much faster and in an inclusive manner”. He admitted that the economy has stagnated for over a decade, with GDP growth averaging less than 2%, while forecasts for medium-term GDP growth are a dismal 1.8%.
While the powers that be attempt to reach consensus on the Budget 2025 proposals, businesses and individuals in South Africa will find little support from the fiscus to survive these low-growth economic conditions.
This is evident from our overview below of the most pertinent Budget 2025 proposals. In a nutshell, the finance minister is trying to cover another substantial Budget shortfall by directly and indirectly increasing the tax burden on corporate and individual taxpayers.
Budget proposals that will impact you
Budget proposals that will impact your business
The 0.5% VAT increases proposed for 1 May 2025 and 1 April 2026 will certainly impact all companies in South Africa’s struggling economy, with a disproportionately negative impact on the small and micro businesses that are crucial to economic growth.
Some good news
According to a recent survey, 91% of people regularly or occasionally read online reviews, and 84% trust online reviews as much as a personal recommendation from a friend. There’s no doubt that reviews are having a moment.
The challenge comes when you learn that it can take as many as 20 good reviews to overcome a single bad one. Little wonder, then, that many companies try to focus on encouraging unhappy customers to remove their bad reviews, while generally neglecting the good ones, save for a short thank you message. This may, however, be short-sighted as using reviews correctly, can change the entire good vs bad formula, strengthen your company, improve sales and improve your bottom line. Here are our tips for maximising those good reviews.
Remember, you can no longer simply write your own reviews as Google tracks which reviews are left when and by whom. Real people leaving reviews in a believable way boost rankings – but fake ones hurt them.
The bottom line
Your reviews are some of the most valuable tools you can use and finding the money in your budget to maximise them is therefore essential. As your accountants, we can help you to refine your budgets and free up cash to improve all of your marketing efforts.
“He who buys what he does not need, steals from himself.” (Swedish Proverb)
Many think of corporate travel expenses as being a non-negotiable, and expensive part of doing business. The thing is, it is possible to cut back on travel expenses without cutting out the necessary requirements and little luxuries. Here are our four top tips for saving money on your corporate travel account.
Most corporate travel is not an emergency. Whether you need to pitch to new clients in London, attend a conference in Los Angeles or visit a supplier in China, proper planning can save a great deal of money. All travel expenses increase the closer you get to the departure date. Simply looking at the necessary travel for the year ahead, scheduling it in advance and booking comfortably ahead of time will save you a significant amount. Flights are generally at their cheapest between 30 and 60 days before departure.
Taking this one step further, you can also make sure you aren’t travelling during peak times. If you need to visit your clients every second month, make sure your trips don’t coincide with large conferences or entertainment events as these can drive up hotel costs.
For domestic travel it makes sense to try and fly on Tuesday, Wednesday or Thursday, as flights are generally cheaper than on other days. Early morning or early afternoon flights (before 3 PM) are not only cheaper, but also tend to have fewer delays and cancellations – which means there’s less chance of additional accommodation or car hire charges.
In order to effectively plan ahead and book all that’s needed, you need to implement a company-wide travel policy. This policy should cover all aspects of travel including:
Making sure everyone is on the same page when it comes to travel means there are no unnecessary or unexpected expenses. As your accountants, we can help you to construct a travel policy that aligns with your budget and cash flow.
Hotels and airlines offer loyalty programs that reward their most frequent travellers with perks like airport lounges and dining discounts, but they also offer important benefits for the business. Airline loyalty members often get to cancel their bookings or change dates at a reduced fee, and the frequent flyer miles and rewards can add up to other free travel benefits. Hotels are much more forgiving on loyalty members when it comes to late and early check-ins and room upgrades. And they typically offer a guaranteed discount on their room rates.
Travel agents are basically a free (or at least very cheap) service for the people who use them. Often the prices are the same whether you book yourself or do it through an agency because the agent commissions are already built into the prices of the rooms, flights and car rentals. Booking with an agent can save your HR, receptionist or PA valuable hours that could be put into something more productive.
Agents are already experts so paying them a small service fee (if required) to keep them on your books will allow them to search further for the best possible prices and benefits using their back-end travel systems. This may not save you money on flights as the airlines are generally pretty transparent, but it can make a big difference on insurance, car rental and accommodation. Agents are also much more likely to be able to wangle last-minute refunds or changes.
If your company is really big (or if you and your staff travel a lot) it may make sense to allow a corporate travel specialist to manage all of your travel requirements.
Bon voyage!
Corporate travel can be a very good investment – but there’s no reason to pay more than you should. Speak to us if you want any help trimming your business travel costs.
“I do not gather things, I prefer to rent them rather than to possess them.” (Jerzy Kosinski, Polish-American writer)
Deciding whether to buy or lease equipment can sometimes seem like an impossible choice. There are so many factors at play that it can feel like whatever you do will be wrong. We’ve put together a short list of five things to consider that should make the process a little easier.
Leasing has lower up-front costs than buying, but in the long term could end up costing your company more. Leasing can make it easier to conserve working capital and maintain a stronger cash flow, especially in the early days. However, if you buy, you will eventually pay the equipment off meaning your long-term costs will drop.
Will the equipment you are looking for need to be upgraded? Or is it something you can use, as is, for years? Leasing equipment often comes with the option of upgrading it on the spot when newer versions come out. This gives companies more flexibility and the chance to be fully up-to-date at all times. If you’re sure of the long-term efficacy of a machine, however, it may make more sense to buy.
Some products will provide more benefits come tax time than others with deductions on offer for both leasing and buying. As your accountants we can help you to understand the exact implications of renting/buying your particular equipment and the amount and timing of tax relief that is available.
Leasing equipment can often mean that you don’t have to worry about maintaining it. While this will undoubtedly be built into the cost of your leasing contract, there’s great comfort in knowing that the maintenance is taken care of – and that if something goes really wrong you can get an immediate replacement. Do just check your lease agreement for any exclusions or restrictions – there is often an exclusion for “damage due to client negligence,” for example.
If you lease your equipment, you probably won’t be able to customise it. It makes sense that the rental company needs to be able to lease the equipment to someone else when you’re done with it. If you own a machine you can generally do with it as you like, meaning you can take care of your special requirements.
The bottom line
Choosing between leasing and buying ultimately depends on your business’ unique set of circumstances.
“Death, taxes, and childbirth! There’s never any convenient time for any of them.” (Margaret Mitchell)
What is provisional tax?
Provisional tax allows corporate and individual provisional taxpayers to pay their annual income tax in advance by making two or three payments during a tax year.
The aim is to prevent taxpayers from facing large income tax liabilities that are only revealed at the end of the year of assessment, when the annual personal income tax (PIT) return ITR12 or the annual corporate income tax (CIT) return ITR14 is filed in January.
While provisional tax payments can assist taxpayers by spreading their income tax liability over the tax year, they also create additional administrative obligations such as completing and submitting a provisional tax return (IRP 6) on time, twice or thrice a year. What’s more, they increase the risk of penalties, most notably under-estimation penalties.
Luckily you have us in your corner.
Are you a provisional taxpayer?
Companies are automatically provisional taxpayers. Individuals who receive income other than a salary may also be provisional taxpayers, depending on various criteria. Because SARS places the onus on you to determine if you are liable for provisional tax, it’s best to check your provisional tax status with us.
The 3 provisional tax payments
The first compulsory provisional tax payment is due within six months of the start of the year of assessment. So, if your or the company’s 2025 tax year commenced on 1 March 2024, the first provisional tax payment was due on 31 August last year.
This forward-looking payment is based on half of the total estimated tax for the full year, less employees’ tax already paid and any applicable tax credits and rebates.
The upcoming second compulsory provisional tax payment deadline is the last working day of the year of assessment (on 28 February if your tax year started on 1 March). It works somewhat differently, and the rules are far stricter – with harsh penalties for under-estimating taxable income for the year.
A third optional payment can be made after the end of the tax year, but before the issuing of the annual income tax assessment by SARS each year.
Crunch time!
The provisional return for the second period to 28 February is retrospective and based on the total estimated tax for the full tax year (less the first period provisional tax and employees’ tax already paid, and any applicable tax credits and rebates).
The second estimate must be quite accurate as heavy under-estimation penalties apply.
Bear in mind that SARS can ask for your estimate to be justified, so you will need accurate records of all the source documents and calculations used to determine your estimate. Even so, SARS can increase the estimate if they are dissatisfied with your amount, and this is not subject to an objection or appeal.
To avoid this, SARS provides the following advice: “the amount of the estimate must be determined sensibly and by careful reasoning and judgment, in a mathematical manner, and using experience, common sense and all available information”.
We can ensure this holds true for your provisional tax, be it corporate or individual.
Further penalties to watch out for…
Rely on our expertise
The rules of provisional tax are daunting and confusing, and yet SARS holds provisional taxpayers responsible for their tax affairs. That’s why it makes sense to allow the experts to prepare and/or review your provisional tax and income tax returns prior to submission.
“It sounds extraordinary, but it’s a fact that balance sheets can make fascinating reading.” (Mary Archer)
A balance sheet reveals a company’s “book value” by showing what assets it owns, what liabilities it owes, and the equity or net worth attributable to its owners, at a specific point in time.
Because all resources or assets are either funded by borrowing (liabilities) or owner investments (equity), the fundamental accounting equation that underpins the balance sheet is:
Assets = Liabilities + Equity.
Key components of a balance sheet
What your balance sheet says about your business
The balance sheet is an important tool for evaluating your company’s financial health and operational efficiency.
By providing an overview of the assets and liabilities of the company and how they relate to each other, the balance sheet can help answer questions such as whether your company has a positive net worth, whether it has enough cash and short-term assets to cover its obligations, and how indebted it is compared to its peers.
The balance sheet will show when a company is borrowing too much money, if the assets it owns are not liquid enough, or if it has enough cash on hand to meet current liabilities.
For this reason, balance sheets are also used to secure capital, private equity funding, business loans or bank finance, as they allow stakeholders to assess the financial health of a company, its solvency, and its ability to repay short-term debts.
Using your balance sheet for better management
Business owners and managers, as well as other stakeholders such as lenders or investors, can leverage the balance sheet alongside other financial resources to enhance decision-making and performance.
When analysed over time or comparatively against competing companies, a balance sheet can reveal ways to improve the financial health of a company.
Financial ratios are important tools that draw data directly from the balance sheet and other sources and are used for fundamental financial analysis. Some common ratios include:
The balance sheet can also contribute to planning for growth, for example, by showing if the company has the assets, resources and capacity to expand, or if reinvestment or additional funding is required.
We can provide and interpret your financial reports
A balance sheet is an invaluable strategic management tool – provided you know how to interpret it.
We can provide your company with this important business tool (along with other key financial reports such as your income statement and cash flow statement).
