Treasury’s 2026 Draft Tax Bills

National Treasury and the South African Revenue Service have published two draft tax bills containing the measures announced in South Africa’s 2026 Budget.

The draft legislation is open for public comment until 28 August 2026, giving businesses, tax practitioners and other interested parties an opportunity to weigh in before the bills are finalised.

The Draft Taxation Laws Amendment Bill deals with substantive tax policy changes. One proposal would require the minimum-value threshold for multiple living annuities held with the same insurer or fund to be calculated cumulatively, helping to protect retirement income.

Another proposal would limit the donations tax exemption between spouses to transfers made to a spouse who is a South African tax resident. Treasury says this is aimed at preventing couples from staggering the end of their tax residency to avoid donations tax and capital gains tax.

For companies operating in special economic zones, the current anti-profit-shifting rule would be replaced by an arm’s-length pricing requirement for transactions between qualifying businesses taxed at 15% and related parties outside the zone. Other proposals deal with VAT clawbacks on leasehold improvements and clarify when carbon-tax refunds linked to compliance with carbon budgets may be claimed.

The Draft Tax Administration Laws Amendment Bill focuses more on administration and compliance. Proposed changes would allow South Africa to adopt electronic customs documents for temporarily imported goods, strengthen record-keeping for notional VAT input claims on second-hand goods, and expressly permit banks to screen suspicious tax refunds before or after depositing them.

Taxpayers using the voluntary disclosure programme would also be able to apply at the same time for remission of interest linked to the disclosed defaults. A Budget proposal relating to the supply of gold to banks has been left out of the draft legislation for now, pending further consultation.

If you would like professional guidance on what these proposals may mean for you or your business, please get in touch.