What changed, and what it means
Tax, compliance, and economic changes that actually affect South African small businesses — not just headlines.
VAT registration threshold more than doubled
The compulsory VAT registration threshold rose from R1,000,000 to R2,300,000 in the 2026 Budget, and the voluntary threshold moved from R50,000 to R120,000 — meaning fewer small businesses are required to register.
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Over 800,000 companies deregistered for missed CIPC filings
CIPC annual returns are separate from SARS tax returns and due every year regardless of trading activity — miss two years in a row and the company can be struck off, freezing bank accounts and exposing directors personally.
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Reserve Bank raises rates for the first time in three years
The SARB lifted the repo rate by 25 basis points to 7.00%, pushing prime lending to 10.50% — the first hike since 2023, aimed at containing inflation risk.
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National minimum wage rises to R30.23 an hour
The national minimum wage increased by 5% (CPI plus 1.5%) from R28.79 to R30.23 per hour, with farm and domestic workers on the same rate — a change every employer needs to reflect in payroll.
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SARS pushes simpler tax compliance for SMMEs
SARS’s SMME Connect series reflects a continued push to make small business tax compliance more accessible, alongside expanding services like Turnover Tax registration through the SARS Online Query System.
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