Based on the original article by Eszter Rapanos, Accounting Weekly
As South Africa prepares for Budget Day on 25 February 2026, the pressing question is whether SARS will generate enough revenue to avoid raising VAT or introducing new taxes. With government spending still high, slow economic growth, and rising debt, authorities are depending on SARS to increase collections—not only by pursuing unpaid taxes, but by tightening rules and expanding the tax net. Here’s the current outlook.
SARS Focuses on Digital Income
The South African Revenue Service is stepping up oversight in the digital economy. Social media influencers, content creators, and freelancers earning through platforms like TikTok, YouTube, and Instagram are now in the compliance spotlight. SARS expects these earners to register, declare income, and pay taxes.
Accountants should proactively offer tax advisory services to clients in this sector, helping them stay compliant before audits or penalties arise.
REITs Under Increased Scrutiny
Real Estate Investment Trusts (REITs) are also being reviewed. Treasury is proposing changes to the definition of a REIT to ensure only genuine property-owning businesses qualify for associated tax benefits.
Property firms that resemble investment funds rather than true REITs could lose status, resulting in higher tax liabilities. Businesses relying on REIT tax advantages should prepare for possible impacts on their planning strategies.
Proposed 20% Online Gambling Tax
Treasury has released a discussion paper suggesting a 20% national tax on online gambling, in addition to existing provincial taxes, VAT, and corporate tax. This could raise the effective tax rate for some operators to nearly 40%.
The gambling industry warns that such a move may push operators out of the legal market and encourage illegal activity. Treasury estimates this measure could generate up to R10 billion in additional revenue.
Stronger SARS Collections May Prevent Tax Hikes
Finance Minister Enoch Godongwana has indicated that if SARS hits its collection targets, proposed tax increases totaling R20 billion might not be necessary. SARS has been allocated R7.5 billion to enhance its systems and staffing, with expected additional revenue of R20–R50 billion annually through better enforcement of existing laws.
Prioritising efficient collection and reducing government waste could remove the need for new taxes.
Implications for Accountants and CIBA Members
This is a key period for accountants and finance professionals to demonstrate their value:
✅ Advise clients on how changes may impact them
✅ Guide digital earners, REITs, and online businesses
✅ Position your firm as a trusted compliance and risk management partner
Key Takeaway
SARS is working hard to boost revenue without immediately raising taxes. However, stricter rules and enhanced enforcement are coming. Accountants and businesses should prepare to navigate this evolving tax landscape.