Price changes are part of running a business at this time of the year, and generally one of the first things business owners consider when they return to the office. Many owners, however, still treat increases as a last resort and/or fear making them – even when rising costs make them unavoidable. Here are our tips for increasing prices in the most effective (and least disruptive) way.

Costs go up and so do prices. And yet most businesses raise prices later than they should. A global study by Simon-Kucher found that less than a quarter of companies adjust prices multiple times a year as needed, with almost 30% discussing price changes only once annually, and 26% waiting for new customer tenders or contract expirations. By the time owners take action, margins are stressed and the communication feels rushed. This is unfortunate, because studies show that a thoughtful considered, and timeous approach is the difference between a customer accepting a change and walking away.

“We’ll lose customers if we raise prices”
This fear is common, but it’s not grounded in the research. Studies from the Harvard Business Review note that when customers leave after a price change, it’s usually because the business has stayed quiet about the reason. Silence erodes trust. People assume the worst, even when the increase is modest. The same study revealed that most customers accept changes if they still see value and understand why the adjustment exists. Communication is key. Your customers should know what costs shifted and what value you’ve added. Keep the message simple enough that a customer could repeat it back without confusion.

“Customers won’t care about the reason”
Owners often assume customers ignore explanations. Evidence says the opposite. Research from McKinsey & Company found that when companies explain the drivers behind price changes, such as rising input costs or service improvements, customer trust remains stable, even when the increase is noticeable. People don’t need all the details, but they definitely do want you to add context. A short, fact-based explanation helps them understand that the decision wasn’t arbitrary or simply based on greed.

“If we apologise enough, customers will be less upset”
For many owners the first inclination is to apologise to the customer for the added pressure the price changes will have on their lives. Trying to soften the blow with an apology frames the price change as a mistake rather than a strategic choice. Customers may wonder whether the change is temporary or negotiable, thereby weakening your position. This is all backed up by researchers writing in the Journal of Service Research who note that apologies work best when something has gone wrong. You can acknowledge the impact on customers without presenting the change as an error. Aim for respectful, not remorseful.

“We should wait until the last minute to avoid backlash”
Delaying the announcement doesn’t reduce resistance, it magnifies it. Short notice announcements leave customers scrambling. If the increases catch them off guard this can lead to resentment – something that’s far more likely to lead them to change supplier than the price change itself. Giving your customers timely notice shows that you respect their planning and cash flow. You should aim to communicate price increases as early as possible. Even a few weeks’ notice can make the shift easier. Use one message delivered consistently across email, invoices, signage, and your website so there’s no confusion.

“Once we announce the increase, the conversation is over”
Many businesses make their price announcement and stop there. Whether from fear of pushback or simply a desire to not discuss it, their refusal to discuss the price changes with customers can often lead to unanswered questions, and confusion, leaving space for assumptions to grow. Studies from Gartner highlight that businesses with strong post-announcement engagement retain more clients than those who treat the update as a one-way message. You should always be prepared for questions. Have a short script or FAQ ready. Make sure your team is aligned so they answer consistently. A calm explanation helps people adjust without feeling ignored.

“The only way to justify an increase is by adding new features”
Price increases don’t always need to come with updates or added features. Often they simply reflect the realities of the economy. Businesses that fail to keep pace eventually struggle to maintain service quality and people understand that. This does not mean that you shouldn’t tell customers when price changes are related to improved offerings. Telling customers about upgrades gives them something concrete to weigh against the higher price. Under-explaining value is as harmful as over-explaining it.

“A single announcement will do”
People miss emails. They skim invoices. They forget dates. A single notice is rarely enough, even when well written. When a message is clear and consistent, customers don’t feel overwhelmed. Using multiple channels for communication has been shown to reduce complaints because no one feels blindsided. You should always aim to send your message through two or three channels, spaced out over time. Keep each version short and factual and make sure they each reflect the same message. Clarity prevents conflict.

“A continent brimming with optimism.” This is how KPMG’s 11th Africa CEO Outlook describes Africa. Among the African CEOs surveyed, 63% expressed optimism about their country’s growth prospects and 78% expressed strong business confidence. Over the short term, 98% expect business expansion and 86% are likely to pursue acquisitions.

“African CEOs are not only adapting to global challenges but are actively investing in the future through AI, talent, and sustainable growth strategies,” explains Ignatius Sehoole, CEO of KPMG South Africa. Most CEOs globally (79%) also say they are optimistic about their own organisations’ prospects and the majority anticipate rising revenues over the next three years. Like their African counterparts, they are doubling down on AI, talent investment and ESG as the keys to resilience and growth.

Common challenges & shared priorities

CEOs, globally and in Africa, face very similar challenges. This has made them more deliberate when deciding how to channel their resources.

Source: 2025 Africa CEO Outlook – KPMG South Africa

In addition, in Africa, CEOs are increasingly prioritising intra-African trade and market expansion on the continent.

AI: Top 2026 strategic priority

For African and global CEOs heading into 2026, AI is a top strategic priority. 26% of African CEOs plan to allocate more than 20% of their annual budget to AI in the next 12 months, almost twice the global average of 14%. This high level of investment by African CEOs reflects a shift in mindset, with AI being viewed not only as a tool for future growth, but as an immediate lever for operational efficiency, better decision-making, and long-term resilience.

To deploy and scale AI, African organisations are faced with three options: build, buy or partner. “Each organisation must weigh the pros and cons of building, buying, or partnering for AI solutions. There is no one-size-fits-all-approach. The right strategy depends on the organisation’s existing capabilities, risk appetite and strategic objectives,” explains Joelene Pierce, CEO Designate of KPMG South Africa.

Talent in the age of AI

Among African CEOs surveyed, 88% expect to increase headcount over the next year and 62% are focusing on retaining and re-training high-potential talent. The majority (81%) believe that upskilling in AI will directly impact their success and more than two thirds (67%) are redeploying staff into AI enabled roles. These numbers, too, closely reflect global perspectives, with 92% of CEOs expecting to increase headcount next year, and 77% agreeing that AI upskilling will directly impact business success. Already, 71% are focusing on retaining and retraining high-potential talent, and 59% are redeploying staff into AI enabled roles.

ESG and sustainability

Despite regulatory complexity, African CEOs remain committed to Environmental, Social, and Governance goals. Almost half (46%) are aligning sustainability goals with core business strategies, 51% are prioritising compliance and reporting, and 74% are using AI to reduce emissions and improve energy efficiency. Globally CEOs are also indicating rising confidence in meeting climate targets, with 61% saying they are on track to hit their 2030 net zero targets. In addition, 65% indicate that they have fully embedded sustainability into their business and believe it is critical to their long-term success.

Harnessing the New Year’s “fresh start effect” can have a significant impact on your team’s motivation as they get back into the swing of things. Read on to find out how what you do at this time of year can influence your team’s performance all year long. Kicking the year off in the right manner might be the best investment you ever make…

The beginning of the new year can be more than another Monday morning: it can be a powerful psychological reset button.

The ‘fresh start effect’ comes after milestones, like New Year’s or anniversaries, that help people believe they can become better versions of themselves – and this applies just as powerfully to teams as it does to individuals. It’s as if a mere calendar flip wipes the slate clean, making new commitments feel more achievable and reducing the emotional weight of past disappointments. When your team returns from the holiday break, they aren’t just rested – they are primed for change, and feeling capable of achieving goals that might have seemed daunting just weeks earlier.

Capturing the moment: Practical strategies for January 2026

The “fresh start effect” creates a window of heightened motivation, but it is only temporary. Research consistently shows that initial New Year’s enthusiasm naturally fades without proper structure and ongoing engagement. The challenge then is to convert this early motivation into sustainable systems. Timing matters. Schedule your most important organisational initiatives, strategic planning sessions, and team goal-setting meetings in these early weeks of January. The psychological conditions are optimal right now, as your team feels capable, refreshed, and ready for change. Use this window to establish the habits, routines, and systems that will carry you through the entire year.

Start by setting specific and measurable goals. Clear and quantifiable goals significantly improve employee engagement and productivity. Break annual targets into smaller quarterly or monthly milestones to prevent overwhelm and provide regular opportunities to maintain momentum and celebrate progress. Team-based goal setting enhances overall performance because it creates accountability, builds collective commitment, and ensures that everyone understands how their individual efforts contribute to larger team goals.

Building sustainable momentum beyond January

The fresh start effect can be a catalyst for creating systems, habits, and cultural practices that sustain performance all year long. Visual progress tracking taps into our psychological need for achievement and keeps the momentum alive. Implement regular check-ins and progress reviews — at least monthly. These touchpoints maintain accountability, allow for course corrections, and provide opportunities to celebrate wins.               

Creating fresh starts all year round

You can also engineer temporal landmarks throughout the year. Things like monthly reset days, quarterly planning sessions, or team offsite retreats… These moments provide mini fresh starts that can reignite motivation when energy naturally dips. Use these inflection points for team brainstorming sessions, strategic pivots, or launching new initiatives. The psychology works the same way: you’re creating a sense of temporal separation that makes change feel achievable.  

The start of a new year brings a powerful urge to chase the future. We get excited about new projects, bigger revenue targets, and a fresh start. But jumping into new resolutions without an honest, data-driven audit of the last twelve months is like building a house without checking the foundations. Before you commit to a single resolution, you must pause and interrogate the year you’ve just completed by asking yourself these five simple questions.

Entrepreneurs are hardwired to look forward, and chase the next win. This constant looking ahead can create a costly strategic blind spot. When you rush past December’s data to write January’s plan, you run the risk of missing the critical lessons already paid for in time, money, and stress. A comprehensive review gives you the opportunity to pinpoint previous issues and create solid strategies for growth. Without this backward glance, your resolutions become a wishlist disconnected from operational reality. The key is turning reflection into a data-driven process, not a feelings-based one. Before you look for your new year’s resolutions, it’s therefore wise to sit down and answer these five precise questions.

1. Which goals did we actually achieve last year, and what specific behaviours drove those wins?

The most common mistake in goal review is simply ticking boxes. You hit the revenue target – great. But why? While hitting a financial benchmark is great, understanding which tactics got you there is the real win. Instead of simply analysing KPIs, you should compare your initial goals with your final metrics. Analyse the data to understand what’s working and what isn’t. Was the goal achieved because a specific marketing campaign worked, or did an unexpected market event carry the result?

By identifying the exact steps, processes, or resource allocations that delivered the win you can prevent yourself from inadvertently eliminating a high-performing strategy in the new year or, worse still, believing a non-repeatable outcome is a sustainable strategy.

2. Where did we waste the most resources?

This question requires an honest, non-emotional audit of your financial and calendar commitments. It’s a review of efficiency, not just income. Beyond the simple rand amount, evaluate the return on investment for projects and tasks. As your accountants we can help by examining your cash flow, expenses, and budget adherence. Which recurring expense failed to generate its expected value? Is there enough money coming in, and are you staying within budget?

The next step is to look at which project delivered disappointing results compared to the time and effort it consumed. By identifying the single biggest time waster of the year for you and your key staff, you can cut inefficiencies and free up resources for genuinely productive initiatives.

3. What did the customer or market teach us that changes our fundamental approach?

Growth depends on staying relevant and competitive. Your business exists to solve a customer problem, and that problem and the best way to solve it changes constantly. The information you need to adapt is already in your email inboxes, support tickets, and sales reports. First analyse your customer feedback. By looking for common themes of satisfaction and dissatisfaction you can open up areas for new services and pinpoint areas where your process is disappointing your biggest clients. Follow this up with a thorough audit of the latest industry trends and competitor actions. This will help you keep abreast of market shifts.

Your biggest revelation for the new year often lies in the data points you tried to ignore because they conflicted with your original plan. Use this insight to adapt your business model and strategies proactively.

4. What project or initiative did we start but fail to finish?

Every entrepreneur has a graveyard of half-finished projects. These are not just lines on a to-do list; they are sunk costs that continue to absorb cognitive load and drain mental bandwidth. You must address them before you plan the next project. Reflect on ideas that were shelved, dropped, or simply allowed to drift. Was the goal too ambitious, did you lose interest, or did more pressing tasks take priority? The reason often lies in poor prioritization or a fear of letting go.

Look at the list of unfinished items and make a binary decision for each:

• Revive: Commit to a concrete, time-bound plan for completion, complete with allocated resources.
• Kill: Officially terminate the project. Archive the files, inform the team, and close the loop.

Letting go of an unfulfilled goal removes operational and mental clutter. Avoid the trap of carrying dead weight into January.

5. What is the single recurring bottleneck we must fix before setting new goals?

Do not confuse a bottleneck with a challenge. A challenge is unique; a bottleneck is the same hurdle that surfaces repeatedly, slowing down every initiative. This could be a lack of standard operating procedures (SOPs), a poor communication structure, or an outdated software system.

The first step to eliminating a bottleneck is pinpointing the area that constantly holds up progress and causes stress. For example: “Our hiring process is inconsistent.” Or: “Data collection for client reports takes two full days.” Setting aggressive new goals on top of a broken system guarantees failure. Address the system first. If your resolution is to double output, but your internal approval process is the issue, a goal to fix the process is the only resolution that matters.

Helping others should be the simplest thing in the world, but the truth is there’s a lot more red tape than you might expect. You’re just trying to run a community project, but then you’re told you need to register as an NPO, but everyone’s calling you an NGO, your accountant says it might help to become an NPC and your donors are asking if you’re a PBO. 

So, what’s the difference? And what’s the right choice for your philanthropic endeavours?

Across the country, tens of thousands of groups run feeding schemes, environmental projects, schools, clinics, and training centres, often built on passion rather than profit.

But while “NGO” is the word most people use, it’s not actually a legal term in South Africa. Entrepreneurs who fund or collaborate with non-profits need to know what each term really means, because it affects compliance, governance, and whether your donation qualifies for a tax deduction.

Alphabet soup: What does it all mean?

What’s the point of registering?

Many groups, particularly small ones, will run perfectly well without registering. Registering does, however, bring a number of real advantages.

• It shows funders and partners that the organisation is credible and accountable.
• It lets the operators open a business bank account in the organisation’s name.
• It qualifies the organisation for funding from government, corporates, and the National Lotteries Commission.
• It’s the first step toward tax exemption.

Any entrepreneurs working with or donating to a cause should always ask for proof of registration as an NPO or NPC.

When does “non-profit” mean tax-free?

Here’s where many people get caught out. Just because an organisation is registered as an NPO doesn’t mean they are automatically exempt from tax. To enjoy tax benefits, like exemption from income tax and giving donors section 18A certificates, the organisation must also apply to SARS for Public Benefit Organisation (PBO) status. (Being granted Section 18A status requires a separate approval on top of PBO status.)

That approval comes with conditions: funds must only be used for approved public-benefit activities, and annual returns must be filed. PBO status will always make an organisation more attractive to donors because their contributions can now become tax-deductible and exempt from donations tax.

How do finances and reporting work?

While this might sound like a lot of admin, it protects both sides. Donors get transparency, and the organisation builds a track record for future funding.

Finding time to relax is difficult in today’s fast-paced business world. Taking leave over the holidays may seem like a luxury, a weakness, or even an impossibility. In actual fact, rest and relaxation (R&R) over the holiday season is crucial to enhancing your team’s productivity, creativity, and decision-making in the new year. Find out here why R&R boosts business performance and how to encourage your team to make the most of their annual leave.

By prioritising rest and relaxation (R&R) over the holidays, businesses can cultivate a healthier, more productive, and more resilient workforce – which ultimately leads to sustained high performance. Here’s why R&R matters for your business performance… And how to help your team make the most of their December break.

6 ways R&R boosts business performance

1. Prevents costly burnout. Chronic stress leads to burnout, which dramatically decreases performance and increases employee turnover. Regular rest maintains sustainable energy and enthusiasm, protecting your investment in talent.
2. Unlocks creativity and innovation. Downtime allows your subconscious mind to process information and make new connections. Those breakthrough ideas rarely happen amid non-stop meetings and deadlines but rather emerge when your brain has space to wander.
3. Sharpens decision-making. Fatigue impairs cognitive function. Rested leaders and employees analyse situations more clearly, weigh options more effectively, and make sound strategic decisions that move the business forward.
4. Increases productivity and focus. Paradoxically, working non-stop decreases productivity. Taking breaks recharges the brain, improving concentration and efficiency. Research shows that the busier people are, the less creative they become.
5. Enhances problem-solving. Stepping away from a challenge provides fresh perspective. You’ll often return with quicker, more effective solutions than if you’d powered through.
6. Improves team communication. When people are tired or stressed, communication suffers. Rest enhances the ability to listen attentively, express ideas clearly, and avoid conflicts caused by fatigue-driven reactions.

How to maximise your team’s December leave

With the December holidays in a few days, now is the ideal time to encourage your team to make the most of the leave days. A good starting point is to ensure your team knows that taking leave is essential: some people need permission to step away from their responsibilities. Also encourage complete disconnection during leave days, reminding your team members that effective rest means genuinely disengaging from work and doing whatever their heart desires, be that hiking the Otter Trail, spending time with the family or embarking on a DIY project.

To reduce anxiety about taking time off and allow everyone to truly switch off when they’re on leave, you need to plan ahead. Work with your team now to establish clear out-of-office dates, handover protocols, and emergency contacts. And ensure projects are covered and clients are informed long before the holidays begin. Finally, remember to lead by example – when managers and business owners take their own breaks and visibly disconnect, it gives everyone else permission to do the same.

Whatever your line of work, moving from solo-business or freelancer to taking on staff is a big choice usually prompted by steady demand you can’t handle on your own. Taking on staff is about much more than finding an extra pair of hands, though. It also means committing to monthly salaries, tax deductions, UIF payments, and legal paperwork. So when should you take the plunge, and just how do you go about doing it? Our guide will help.

Faced with rising demand, every successful solo-business person or freelancer will start wishing they had someone around who could help. But deciding to hire means planning for ongoing salary costs, statutory contributions, written contracts and record-keeping. Do it deliberately, with preparation and you will gain capacity and potentially, increased profit. Do it without preparation and you can pick up expensive legal and tax problems.

When’s the right time?

First, make a list of tasks you believe you could hand over. Then look for areas that could be improved if you had someone to help with them. For example, if admin, scheduling or basic service work is stopping you from completing billable hours, then that’s a clear sign that something needs to change. You may want to consider hiring if you find yourself regularly turning away clients, or when your quality slips because you are over-stretched. You should also consider whether you have a steady pipeline that has areas of potential growth. If the need is temporary, a contractor might be a better bet.

Taking that next step

If you have decided to hire, then the next step is calculating just how much you can afford to pay. A salary is not just the monthly wage. You need to include a budget for additional costs you may need to carry, like equipment, training and the chance that the hire won’t be productive from the outset.

Who to hire first

When choosing who to hire, you should closely examine just where you’re getting stuck and then look for an employee who removes the biggest bottleneck. Common first hires include an administrative assistant to help with invoicing, scheduling and emails and a junior specialist or apprentice who can do the routine parts of your core service.  Your job advert should cover that bottleneck and list the main tasks and skills required. You should avoid the temptation of writing vague or overloaded job descriptions in the hope of finding a jack-of-all-trades. While these people may exist, they won’t be looking at entry-level jobs.

Key registrations as an employer

Before the first payday, you will need to register as an employer with SARS so you can withhold PAYE (pay-as-you-earn) tax.

You will also need to register with:

• The UIF (Unemployment Insurance Fund) where both employers and employees contribute 1% of pay
• The Compensation Fund (COIDA), which covers workplace injuries
• If your annual payroll exceeds R500,000 you must register for and pay the Skills Development Levy (SDL) – 1% of payroll

After that, you should set up your payroll processes as these need to be in place before the first pay run. Payroll mistakes are common and costly and your accountant (that’s us) can help you to set these up correctly.

Contracts and labour law basics

Every employee should ideally have a written contract that sets out salary, hours, duties, leave and notice period. Even small, first-time employers must follow The Basic Conditions of Employment Act (which sets minimums for working hours, leave, and overtime) and the Labour Relations Act, which governs fair dismissal procedures and dispute resolution. If you need help, ask us.

Tax obligations and paperwork

As an employer you must deduct PAYE from salaries and submit monthly EMP201 returns to SARS, pay your share of UIF and submit monthly UIF returns, pay SDL if you meet the threshold and submit the relevant returns, issue IRP5s to employees at year-end and reconcile with SARS (EMP501). While this may sound like a lot, as your accountants, we are here to help with it all.

Legal structures

Now might also be the time to restructure the way you do business. A sole proprietor can hire staff, but you remain personally liable for the business and any mistakes your employees make can become a very real and very personal problem. A private company (Pty) Ltd meanwhile separates business liabilities from personal assets and may be a sensible step once turnover and payroll grow. You can register a company with CIPC if you want that separation. Other options include a partnership and a trust. Not sure which to choose? Ask us.

To offer taxpayers a way to settle outstanding tax debt swiftly and to regularise their tax affairs on more favourable terms, SARS has launched an expedited tax debt compromise process. Applications are only open until 31 December 2025, however, so find out here how we can assist your business to take advantage of this very welcome relief.

Acknowledging that taxpayers often find it difficult to settle tax debt due to financial challenges, SARS has launched an expedited debt compromise process to help eligible taxpayers settle outstanding tax debts swiftly and on more favourable terms. The normal debt compromise process remains available to all taxpayers, and learnings from this expedited process will be used to enhance the broader system.

What is a debt compromise?

A compromise is a written agreement between SARS and a taxpayer in which SARS agrees to accept a reduced amount as full and final settlement of a tax debt. Once the taxpayer pays the agreed amount and complies with the terms, SARS waives the balance of the debt. However, if the taxpayer defaults or fails to remain compliant, SARS can reinstate the full debt.

Expedited debt compromise eligibility criteria

• The process applies to non-disputed tax debts older than 12 months.
• You must be a client of a registered tax practitioner.
• Your tax returns must be up to date (even if payment is outstanding).
• The following exclusions apply: entities subject to specific legal processes (such as liquidations, estates, and business rescue cases), companies that are deregistered, cases subject to criminal investigation and audit, as well as cases within the write-off process, taxpayers who have had a compromise in the past three years, and taxpayers who have the means to pay but refuse to do so.

Submission requirements

Taxpayers applying for the expedited tax debt compromise process must provide comprehensive relevant supporting documentation with their applications, which must be submitted by 31 December 2025.

These documents include:

• Latest Annual Financial Statements (not older than one year)
• Last six months’ bank statements
• Cashflow forecast for 12 months
• List of Assets and Liabilities at market value
• Debtors’ age analysis
• Details of any connected persons
• Details of assets disposed of in the last three years
• Disclosure of future or contingent interests in assets
• Details of assets under the taxpayer’s control (including through trusts)
• Current and projected income for the next three years
• Application letter with clear motivation, including the proposed settlement offer amount, and the source of funds to pay the offered amount
• Collection Information Statement (CIS) request with reasons and proof to compromise the debt.

It is important that disclosures are accurate – if they aren’t SARS might not even consider the application. SARS has committed to resolving qualifying applications within four weeks, using dedicated teams and enhanced workflow management. Approved compromise settlements may be paid either in full (once-off payment), or in instalments as agreed by SARS.

The end of the year is the perfect time to wrap up loose ends, assess your business’s performance, and prepare for a successful year ahead. This checklist is a fantastic start. But consider reaching out to us for a tailored checklist for your unique business needs. We’d love to help you tick all the boxes before the holidays rush in.

Can you believe November is upon us already? But instead of panicking about Christmas presents, it’s time to get strategic. The end of the year presents a crucial opportunity to settle outstanding matters, measure your business’s progress, and establish a strong foundation for a prosperous new year.  This checklist can help you achieve this before December rolls around.

Your 10-step checklist         

• Back up your data: Back up essential files including accounting documents, client information, and emails. It’s a good idea to keep at least one copy on the cloud and another copy offline on an external hard drive in a secure location.
• Stay on top of employee matters: Update all employee information as well as employee access and passwords to software programs and computer systems. Conduct constructive performance appraisals or feedback sessions and share rewards and recognition for notable contributions.
• Connect with your customers: Send festive season wishes and details of your holiday operating hours, and invite your customers to give feedback about your company. Add an out-of-office notification on all your communication channels with specific dates as well as an emergency number.
• Understand your financial position: Management accounts or reports like the income statement, balance sheet, and cash flow statement provide insight into the expense patterns, profit margins, revenue trends and financial health of your business, enabling informed decisions.
• Understand your tax position: Make sure you know your various tax obligations, liabilities and deadlines, and any tax deductions and credits you may qualify for before year-end.
• Review marketing and sales efforts: Evaluate which strategies worked, which didn’t, and why.
• Collect outstanding invoices: Get your December invoices out as early as possible and don’t let unpaid invoices carry over into the new year. Follow up on overdue payments now to boost cash flow and start fresh in January.
• Verify supplier information: Update your supplier database by confirming contact details, while also evaluating supplier relationships and negotiating better terms.
• Take stock: Take a physical inventory of all equipment, supplies and stock to better meet customer demand, identify any discrepancies in your records, prepare tax returns and insurance proposals, and effect necessary repairs, maintenance and upgrades. Set a specific day for the count, organise the space, record quantities, and calculate total value.

Audit your digital presence: Test every link on your website, check your contact forms, review your social media profiles and call your business number to ensure everything works.        

Trust Tax Season 2025 opened in September and SARS has already issued reminders to trustees that all trusts, including those that are not economically active, must file a tax return before 19 January 2026.  Read more here about the obligations SARS imposes on trusts and what’s changed this tax season – including the changes to the important flow through or conduit principle.

The official trust filing season for the 2025 year of assessment is now open for both provisional and non-provisional taxpayers – and SARS has issued stern warnings to trustees to fulfil their tax obligations. 

Who must file trust tax returns?
A trust is included under the definition of a “person” in terms of the ITA (Income Tax Act no.58 of 1962) and is therefore regarded as a taxpayer.  All South African trusts, including resident and non-resident trusts, that are registered for income tax, must file a tax return annually, even if the trust is not economically active.  A trustee is the representative taxpayer of a trust. Trustees or representatives must register the trust for income tax and file the required tax returns annually. Alternatively, a registered tax practitioner can be appointed as the representative taxpayer. 

What must be done?             
Taking into account recent changes to the legislation, trustees must submit their returns for the 2025 year of assessment and file the mandatory supporting documents listed further below. 

Recent legislative changes

• The “flow-through” principle is now limited to resident beneficiaries, so all amounts vested to non-resident beneficiaries are taxable in the hands of the trust. This also affects the submission requirements for provisional tax (IRP6).
• Foreign tax credits for taxes paid on income or capital gains earned in a foreign jurisdiction can now be used to prevent double taxation.
• From the 2025 tax year onwards, unused foreign tax credits will be carried forward automatically to the subsequent years of assessment, up to a maximum of six years.
• The Section 12H Learnership Agreement is extended to 31 March 2027.
• The definition of a trust is updated to include collective investment scheme portfolios.
• SARS has issued new rules on how losses relating to distributions are limited under section 25B.

Return submissions
The final deadline for the submission of provisional and non-provisional Trust Income Tax Returns (ITR12Ts) is 19 January 2026.

Mandatory supporting documents

Source: SARS

File on time!
Trustees and administrators should take note that all the return submissions and supporting documents are due by 19 January 2026 – just days into the new year.  Submitting within the deadlines is necessary to comply with SARS regulations. Late submissions can lead to administrative penalties, interest charges, and additional steps. 

What else must be done?
Because a trust is also a provisional taxpayer, trustees should be aware that a trust is further required to submit provisional tax returns (IRP6) twice a year in August and February.  In addition, trustees are also required to submit an IT3(t) third-party data return that provides details of amounts vested to beneficiaries.  Finally, all income derived from a trust must be declared by any resident beneficiaries of trusts in their own income tax returns. 

Looking ahead: Key tax dates for trusts

• 19 January 2026: Final deadline for provisional and non-provisional trust tax return (ITR12T) submissions.
• 28 February 2026: Second provisional tax payment for the 2026 assessment year.
• 31 August 2026: First provisional tax payment for the 2027 assessment year.
• September 2026 (date TBC): Opening date for Income Tax Returns for Trusts (ITR12T) submissions for 2026.
• 30 September 2026: Deadline for IT3(t) return submissions for trusts which declare amounts vested to beneficiaries’ income.
• 30 September 2026: Top-up provisional tax payment for the 2027 assessment year.

Consequences of non-compliance
SARS takes a zero-tolerance approach to taxpayers who do not register for the applicable tax, file tax returns, declare income accurately, or pay their tax debt.  Non-compliance with these obligations is a criminal offence and will attract penalties and interest.