Compliance Hub

The VAT registration thresholds below reflect figures announced in government budget material and SARS guidance. Businesses must always verify the current threshold and effective date directly with SARS before relying on these figures. The standard VAT rate is 15%.

VAT vendors are categorised for filing purposes:

• Category A: Generally monthly.
• Category B: Generally every 2 months.
• Category C: May be available to qualifying small vendors, subject to SARS approval.

Employers registered with SARS must deduct PAYE from employee remuneration and remit it to SARS together with the Skills Development Levy and UIF.

Skills Development Levy: Generally 1% of total remuneration paid to employees.

UIF:

• Employee contribution: 1% of remuneration.
• Employer contribution: 1% of remuneration.
• Contributions are subject to a monthly remuneration ceiling. Verify the current ceiling before relying on it.

The following corporate income tax rates apply generally for years of assessment ending between 1 March 2026 and 31 March 2027. Always verify the current rate before use.

Small Business Corporation tax rates

Tax year: 1 March 2026 to 28 February 2027. Always verify current rates before use.

Tax rebates:

Tax thresholds:

Medical scheme fees tax credit: R376 for each of the first two persons covered, and R254 for each additional dependant, subject to annual change.

A Tax Compliance Status PIN issued by SARS confirms that a taxpayer is compliant with their tax obligations at the time of issue.

• Government and private sector tenders.
• Foreign investment allowances and emigration applications.
• Supplier and contractor onboarding processes.

All major tax filings including VAT, PAYE, income tax and provisional tax are processed through the SARS eFiling platform.

The Basic Conditions of Employment Act 75 of 1997 sets out minimum employment conditions in South Africa.

South Africa's national minimum wage is reviewed annually. The figures below reflect the rate effective from 1 March 2025.

UIF

COIDA

• Employers with staff are generally required to register with the Compensation Fund.
• An annual Return of Earnings must typically be submitted by 31 March each year.
• The assessment rate is determined by the industry class and actual remuneration paid.
• Some categories of employees may be exempt.

The Labour Relations Act 66 of 1995 governs dismissals, workplace disputes and collective bargaining. A dismissal is generally only lawful if it is both substantively and procedurally fair.

• Substantively fair: A valid reason must exist such as misconduct, incapacity or operational requirements.
• Procedurally fair: The correct process must be followed, including notice, hearing opportunity and written outcome.

The Basic Conditions of Employment Act requires that an employer give each employee written particulars of employment.

• Employer and employee details.
• Start date and duration where fixed term.
• Job title, duties and place of work.
• Hours and days of work.
• Remuneration, method and frequency of payment.
• Leave entitlements and notice periods.
• Agreed deductions with written authorisation.

Rootman Financial Services assists clients with employment contracts and HR documentation aligned to current statutory requirements.

The Protection of Personal Information Act, Act 4 of 2013, is South Africa's primary data privacy legislation. It came into full effect on 1 July 2021.

• POPIA applies to any person or organisation that processes personal information in South Africa.
• The Information Regulator oversees POPIA compliance.
• Non-compliance may result in significant administrative fines or criminal penalties, depending on the offence.

POPIA requires that all processing of personal information satisfies 8 conditions set out in the Act.

• Appoint an Information Officer.
• Register the Information Officer where required.
• Develop and publish a POPIA-compliant privacy notice or policy.
• Obtain consent where processing is consent based.
• Implement appropriate security measures.
• Establish a data breach notification procedure.
• Ensure third-party operators are contractually bound to comply.

A data breach occurs when personal information is accessed, disclosed, lost, destroyed or otherwise processed without proper authorisation.

• The responsible party must notify the Information Regulator and affected data subjects as soon as reasonably possible after becoming aware of a breach.
• Notification should explain what occurred, what data was involved, likely consequences and response steps.

Broad-Based Black Economic Empowerment is a South African legislative and policy framework aimed at supporting economic transformation.

Sector-specific codes may apply different thresholds, documentation requirements and recognition rules.

B-BBEE levels range from Level 1 to Level 8, plus non-compliant.

• B-BBEE certificates are typically valid for 12 months from issue.
• Affidavits for EMEs are generally accepted without formal third-party verification under the Generic Codes.
• Only use accredited verification agencies for formal certification.