Tax Efficiency Matters More Than Ever Ahead of National Budget 2026

With the National Budget set to be tabled on 25 February 2026, South Africans are bracing for a fiscal statement that is expected to emphasise stricter enforcement and smarter incentives rather than sweeping tax hikes.

According to Deloitte, the government is entering this Budget season with “urgency and possibility,” aiming to stabilise revenue while rebuilding confidence in the economy.

Against this backdrop, IFSA Asset Managers are encouraging individuals and businesses to take a proactive stance on tax efficiency.

Personal Tax Management: Protecting Wealth in a Tight Fiscal Climate
Moore South Africa notes that fiscal pressures remain significant, with the government focusing on improved revenue collection and administrative enforcement. For individuals, this means that structuring investments correctly is critical.

• Retirement Annuities (RAs) and Tax Free Savings Accounts (TFSAs) remain powerful vehicles. Used together, they can maximise retirement savings while offering significant tax benefits.
• Capital Gains Tax (CGT)continues to be a key consideration. SARS confirms that the effective CGT rate for individuals is 18%, with annual exclusions of R40,000. Poor timing of asset disposals can trigger unnecessary liabilities.
• Estate planning and tax efficiency go hand in hand. Proper beneficiary nominations can reduce estate duty and CGT inefficiencies over time.

“Tax efficiency is not about avoiding tax — it’s about using the structures available to you to protect your wealth and ensure sustainability across generations,” says Frikkie van Loggerenberg, CEO of IFSA Asset Managers.

Business & Self Employed Tax Management: Cash Flow Meets Compliance
For SMEs and entrepreneurs, tax planning is directly linked to survival. SARS has recently highlighted the importance of provisional tax compliance, noting that all registered companies are automatically classified as provisional taxpayers.

• Provisional tax planning helps businesses avoid liquidity shocks and large year end liabilities.
• Remuneration structuring — balancing salary, dividends, and retirement contributions — can materially impact tax efficiency.
• Turnover Tax, available for businesses with annual turnover below R1 million, replaces income tax, provisional tax, and CGT, simplifying compliance for micro enterprises .
• Compliance is tightening. Deloitte notes that the government is expected to lean heavily on enforcement to stabilise revenue.
“Cash flow and tax go hand in hand. Businesses that plan ahead not only avoid shocks but also position themselves to take advantage of incentives,” adds van Loggerenberg.

Why This Budget Matters
The 2026/27 Budget is expected to prioritise better enforcement and targeted incentives rather than headline tax increases. For individuals and businesses, this means:

• Planning ahead to benefit from available incentives.
• Avoiding penalties by staying compliant.
• Using professional advice to structure investments and remuneration efficiently.