As we move into 2026, South Africa is undergoing a period of profound legislative and structural transformation. What were once merely policy debates are now formalised laws, with a far-reaching impact on property rights, corporate taxation, healthcare funding, and the very foundation of the country’s industrial economy. Understanding these shifts is crucial for strategic planning in the new financial year.
The New Framework for Land Expropriation
A subject that has dominated public discourse and garnered international attention for years has now been formally legislated. The Expropriation Act (No. 13 of 2024) was signed into law in early 2025, signaling a definitive move away from the outdated 1975 legislation and aligning the process with the Constitution.
This new legal framework empowers the state to acquire property for a public purpose or in the public interest. Crucially, the Act firmly establishes the principle of “just and equitable compensation”. This calculation is now based on a balance of public interest and the owner’s interest, taking into account several factors, including:
- The current use of the property.
- The history of its acquisition and any state investment.
- The purpose of the expropriation.
While it has been suggested that nil compensation is legally possible, experts agree this would only occur under extremely rare circumstances, and the Act is explicitly described by the government as a constitutionally mandated process, not a confiscation instrument. Though the date of commencement is still to be officially proclaimed, the Act provides a clear statutory basis for land reform efforts.
Navigating the 2026 Tax Transformation
The next financial year brings two major, interconnected shifts in the tax landscape: the arrival of the global minimum tax and the funding challenges of the National Health Insurance (NHI).
1. The Global Minimum Tax (Pillar Two)
Multinational Enterprise (MNE) groups with consolidated annual revenue exceeding EUR 750 million are now subject to the Global Minimum Tax (GMT). South Africa enacted its corresponding legislation in late 2024 and early 2025. The legislation establishes a 15% minimum effective tax rate.
For these large corporate groups, 2026 is the year of key compliance deadlines:
- The system functionality for registration and notification on SARS eFiling is scheduled to go live in March 2026.
- The first Global Information Returns (GIR) for the 2024 fiscal year are due by 30 June 2026 for affected entities.
2. NHI and the Future of Medical Tax Credits
The implementation of the NHI Act (Act 20 of 2023) has brought the issue of funding to the forefront. One significant funding proposal under discussion is the gradual removal of medical scheme tax credits.
Initial discussions with the National Treasury have outlined a plan to phase out the credit, potentially beginning with higher-income members in the 2026/27 financial year. The goal is to redirect the substantial funding currently allocated to these credits toward the NHI Fund. However, the removal is contentious, with concerns raised about the impact on middle-class taxpayers who form the core of the personal income tax base. The ultimate decision to end these credits requires a separate Money Bill.
The Just Transition: Climate Law Meets the Workplace
South Africa’s commitment to addressing climate change is increasingly being formalized into domestic legislation, which has significant implications for labor and business. The concept of a “Just Transition” is central to this process, a commitment to moving toward a low-carbon economy while simultaneously securing the livelihoods and futures of workers and communities affected by the shift.
Workplaces, particularly in carbon-intensive sectors, must recognize that this is not just an environmental issue but an economy-wide transformation. The transition relies on active social dialogue between government, employers, and unions. The labour law framework is actively being optimized to support this, focusing on key elements to ensure fairness and stability:
- Skills Development: Anticipating and addressing future skills needs for a green economy.
- Restructuring and Retrenchments: Managing inevitable job shifts through consultation and collective bargaining processes.
- Social Protection: Ensuring social protection measures, like healthcare and pensions, are in place for affected workers.
The implementation of the Climate Change Act and related policies will require businesses to incorporate climate action into their financial and operational planning, creating both risks and opportunities for new green sectors.
The Digital Taxpayer: SARS’s Automated Audit Strategy
Underpinning these major policy shifts is a fundamental change in how SARS operates. The revenue service’s modern audit strategy is unforgiving and highly automated. SARS no longer views corporate income tax, VAT, PAYE, and customs declarations as separate compliance streams. Instead, it leverages digital tools, automated analytics, and data triangulation from banks, payroll systems, and regulatory bodies (like CIPC) to create a single, unified taxpayer profile.
Any perceived misalignment between data streams, for example, a discrepancy between a payroll report and a company’s income tax return, will instantly trigger a verification or audit request. The greatest vulnerability for businesses and individuals is no longer the complexity of tax law but the consistency and quality of documentation. Accuracy and internal consistency are paramount, as poor record-keeping is immediately flagged as a compliance risk.
Conclusion
The landscape of 2026 is defined by new rules and stricter enforcement, from property law to corporate taxation. The Expropriation Act provides a formalized legal route for land reform, while global obligations are forcing large businesses to comply with new minimum tax rules. Simultaneously, the Just Transition requires a foundational shift in how industries operate, and all taxpayers must contend with SARS’s advanced, highly-automated compliance regime. Proactive engagement and impeccable data governance are no longer optional, they are the minimum requirements for navigating South Africa’s transforming environment.
Take Action: Partner with the SA Institute of Taxation (SAIT)
Given the massive legislative and regulatory shifts detailed above – from the implementation of the Expropriation Act and the complexity of the Global Minimum Tax to the aggressive, automated audit strategy of SARS – the need for expert, up-to-date tax and legal guidance has never been more critical for businesses and informed citizens.
The SA Institute of Taxation (SAIT) is your essential partner in navigating this transforming environment.
What SAIT Can Do For You:
- Expert Guidance on Complex Legislation: Access resources and professional advice that clarify the intricate details of new laws like the Expropriation Act and the practical compliance requirements of the Global Minimum Tax (Pillar Two), ensuring you avoid unintended non-compliance.
- Audit Readiness and Risk Mitigation: Learn best practices for maintaining the impeccable data governance required to satisfy SARS’s automated, data-driven audit systems, helping you prepare for verification requests and minimize audit risk.
- Policy Insight and Advocacy: Stay ahead of key policy changes, such as the ongoing discussions around the medical scheme tax credits and their potential phase-out under the NHI, enabling you to plan effectively for the future of your personal and corporate finances.
- Connecting with Practitioners: Find qualified and registered Tax Practitioners who can provide professional assistance, particularly for managing complex matters like international tax obligations, debt arrangements, or navigating the implications of the Just Transition framework.
Secure your financial future and ensure full compliance in 2026. Connect with SAIT and access the expertise you need.