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Top Tax Trends to Watch in 2026: A Guide for South African Tax Students
- 03 December 2025
- Blogs
- Skylight Digital
As a tax student, keeping up with developments isn’t just helpful, it’s essential. The landscape of taxation in South Africa is shifting in response to economic pressures, policy changes, and global trends. Here are the key tax trends you’ll want to have on your radar in 2026.
1. Fiscal drag and tax‑bracket stagnation
Even if nominal tax rates don’t change significantly, taxpayers are likely to face higher effective tax burdens. According to the National Treasury 2025 Budget Review, the personal income‑tax brackets and rebates were not adjusted for inflation in the 2025/26 year.
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What this means for you: As a tax professional, you’ll need to explain to clients or employers how inflation, without bracket adjustments, effectively increases the tax burden.
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Student tip: Understand how fiscal drag works and practise calculating “real” tax burdens over time.
2. Broadened tax base & increased collection focus
With revenue shortfalls looming, the government is focusing on both broadening the tax base and improving compliance. The budget document shows that additional measures (beyond rate increases) are planned to raise R28 billion in 2025/26.
Why it’s important
As a tax advisor or consultant you’ll need to consider how non‑traditional income / informal economy activity might be caught in future compliance drives.
Student tip
Pay attention to how administrative penalties, disclosure requirements and digital compliance frameworks evolve.
3. VAT changes & possible upward pressure
The 2025 Budget proposed a rise in the Value‑added tax (VAT) rate from 15% to 15.5% (May 2025) and up to 16% (April 2026) as a medium‑term revenue measure. While the rate rise faced strong headwinds, including political pushback, the pressure remains.
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Implication: VAT remains an area of focus, zero‑rating lists, exemptions, and compliance burdens could change.
- Student tip: Brush up on how VAT applies across goods and services, and track any changes to zero‑rated items or administrative rules.
4. Digitalisation & advanced compliance mechanisms
Tax administration is increasingly digital. The focus on better data collection, e‑filing, analytics, and cross‑border reporting is intensifying. For instance, the Treasury review mentions the need to protect and broaden the tax base through modernisation.
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Why this matters: Future tax professionals will need to be comfortable advising in an environment where digital records, e‑audits and automated tools are the norm.
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Student tip: Familiarise yourself with systems such as SARS eFiling, and understand how data‑driven compliance may affect client advice.
5. International tax and cross‑border issues
Global tax developments continue to influence South African tax policy. Although South Africa is not always at the cutting edge, students should watch for issues such as digital services taxation, transfer pricing, base erosion and profit shifting (BEPS) implications. The budget commentary refers to the need for an enhanced base‑broadening and aligning with global norms.
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Take‑away: As more taxpayers engage in cross‑border business, you’ll need a grasp of how South Africa deals with foreign income, permanent establishments, and treaty issues.
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Student tip: Study international tax modules and follow recent SARS rulings or global updates, so you’re ready for advanced taxation topics.
6. Environmental, carbon and green tax themes
South Africa’s tax policy is increasingly giving attention to environmental taxes. The 2025 Budget mentions carbon‑tax developments and the need to align tax policy with sustainability objectives.
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Why it matters: Green taxes may become more relevant for clients in industries such as energy, manufacturing and resources.
- Student tip: If you specialise in advanced taxation, include modules on environmental tax, carbon pricing and how these impact corporate clients.
7. Education, upskilling, and evolving professional standards
For tax students, this is your moment. Because rules are shifting, the value of high‑quality qualifications is rising. Firms expect tax professionals who not only know the current rules but also understand how to anticipate change.
Action point for you
Stay engaged with current affairs, budget speeches, and SARS guidance. Follow how professional taxation bodies update their frameworks and ensure your skills remain relevant.
Conclusion
The tax world in South Africa in 2026 will be shaped by fiscal pressures, digital transformation, and global alignment. As a tax student, you’re in the ideal place to embrace these changes and position yourself as a forward‑thinking adviser. Keep watching the budget announcements, deepen your technical knowledge, and stay curious. The future of tax is moving fast, and you don’t want to be left behind.
Ready to turn insight into action?
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