If you live or run a business in Gauteng, the new tax reforms are hitting your wallet sooner than you think. The government just rolled out several changes aimed at boosting revenue and closing loopholes. Below we break down the most important points so you can act fast.
First up, the personal income tax brackets are shifting. The top marginal rate jumps from 45% to 47% for earnings above R1.7 million. That means high‑earners will see a bigger bite out of their paychecks.
On the corporate side, the standard company tax stays at 28%, but a new surcharge of 2% applies to firms with annual turnover over R500 million. Small and medium enterprises (SMEs) under that threshold are safe for now.
Gauteng contributes the lion’s share of South Africa’s tax revenue, so any reform hits the province hard. For individuals, expect higher payroll deductions if you earn over R1 million. You might want to revisit your retirement contributions – boosting those can lower taxable income.
Businesses should review their expense claims. The government is tightening rules on travel and entertainment deductions, allowing only 50% of the cost to be claimed. If you run a tech startup, the new R&D tax credit remains at 150%, but you now need to submit quarterly progress reports.
Property owners are also in the mix. The capital gains tax (CGT) exemption for primary residences drops from R2 million to R1 million. If you’re planning to sell a house, factor that into your price calculations.
One bright spot: the value‑added tax (VAT) threshold is being raised from R1 million to R2 million. Small traders who previously had to register for VAT may now stay exempt, easing cash‑flow pressure.
Don’t forget about the informal sector. The new policy includes a simplified tax regime for vendors earning less than R200 000 annually – they can pay a flat 5% rate instead of navigating complex brackets.
What should you do right now? Start by checking your latest payslip or profit‑and‑loss statement against the new rates. If the numbers don’t line up, talk to your accountant or HR department.
Businesses can benefit from early compliance. Submit any required quarterly reports for R&D credits before the deadline to lock in the higher credit rate. And if you’re close to the turnover threshold, consider restructuring to keep the surcharge at bay.
For personal finance folks, look at increasing contributions to retirement annuities or tax‑free savings accounts. Those moves reduce your taxable income and give a cushion against the higher top bracket.
Finally, stay tuned to Gauteng News Hub for breaking updates. Tax policy can shift quickly, and missing a deadline could cost you fines or extra tax bills. Bookmark this page and check back often – we’ll keep the latest changes fresh and easy to understand.
Senate President Godswill Akpabio confirmed that President Bola Tinubu's tax reform bills have not been withdrawn, dispelling contrary media reports. He assured citizens that the Senate is committed to protecting public interests and will not yield to external influences. The bills propose notable economic benefits such as tax exemptions for small businesses. Public hearings remain ongoing to address national concerns and enhance fiscal policy transparency.
© 2025. All rights reserved.