Filing season!

The dates are out.

• For non provisional taxpayers on or before 20 October 2025;
• on or before 19 January 2026 if the return relates to a provisional taxpayer
• on or before 19 January 2026 if the return relates to a trust; or
• where accounts are accepted by the Commissioner in terms of section 66(13A) of the Income Tax Act in respect of the whole or portion of a taxpayer’s income, which are drawn to a date after 28 February 2025 but on or before 30 September 2025, within 6 months from the date to which such accounts are drawn.

Budget update

At least now we know there is no VAT increase, just a fuel levy increase. The Budget Speech was fairly uneventful, with the Minister taking time to promise that “this one will pass”.

Notable changes from the March Budget

Reduced Funding for Health and Education:

• Health: The allocation for health, including provincial health compensation, unemployed doctors, and goods and services, was reduced from R28.9 billion in the March budget to R20.7 billion in the May budget.
• Education: Additional spending for education was also slashed from R29.5 billion to R19.5 billion.

Increased Fuel Levy:

The budget proposes an inflation-linked increase to the general fuel levy.

Downward Revision of Tax Revenue Projections:

Tax revenue projections were revised down by R61.9 billion over three years, reflecting the weaker economic outlook and the reversal of a previously proposed VAT increase.

Government Debt Stabilization:

Government debt is expected to stabilize at 77.4% of GDP, 1.2 percentage points higher than initial March estimates, due to the weaker economic outlook.

Infrastructure Spending:

The budget adds R33.7 billion for infrastructure projects over the medium term.

Other Notable Changes:

• While the March budget allocated R3.3 billion for digitisation and human resource capacity building at Home Affairs, this was reduced to R965 million in the May budget, with the “human resource capacitation” component removed.
• The sugar tax was frozen, meaning an inflationary increase that was due to take effect in April was cancelled to allow the sugar industry more time to restructure.