If you receive dividends from a South African company (or you run a (Pty) Ltd that pays dividends), it’s important to understand what “dividends tax” is, who must deal with it, and what paperwork we need from you each year.

The Budget Speech always comes with a few tweaks that can affect your personal tax, payroll, and planning. Here are the key changes we want you to be aware of — nice and simple.

One of the most talked‑about proposals in the 2026/27 Budget is the plan to raise the compulsory VAT registration threshold from R1 million to R2.3 million in a 12‑month period. This is a big shift, especially for small businesses that have been hovering just above or below the current R1 million mark.

Over the past few years, SARS has been tightening its compliance systems, and now a major shift is here. From February 2026, SARS will reject any PAYE (EMP501) reconciliation that includes an employee who is required to be tax‑registered but does not have a valid Income Tax Reference Number (ITRN). The long‑standing warning “grace period” officially ends with the 2026 Employer Filing Season, and any non‑compliance may lead to administrative penalties.