CentaTax

As we look ahead to the 2027 financial year, the South African corporate tax rate remains steady at 27%. However, SARS’ enforcement approach has significantly evolved. The revenue authority is increasingly relying on AI-enabled risk selection, advanced data analytics, and third-party data matching to identify discrepancies in complex corporate positions.

While traditional verification processes remain in place, SARS is placing growing emphasis on interpretation-based audits, particularly in areas such as cross-border transactions, intra-group restructures, and transfer pricing models. A single mischaracterisation in your Corporate Income Tax (CIT) return can trigger automated queries and potentially significant financial consequences.

In this environment, proactive planning is essential to ensure that commercial substance aligns closely with tax declarations before anomalies are flagged.

Protect your business from unexpected assessments.
Connect with our Corporate Tax Directors today to stress-test your 2027 CIT strategy: www.centatax.com/contact-us/

📧 [email protected] | 📞 +27 (011) 262 6626

Tax Tip: Did you know about VAT on Insurance Claims?

Many businesses overlook this critical detail: If your company is a registered VAT vendor
and receives an indemnity payment from an insurance claim, that payout is deemed to
be inclusive of VAT!

You must declare the output VAT on the insurance claim under block 1A of your VAT201
return. Failing to do so is a common trigger for SARS audits.

Stay compliant and avoid unexpected tax liabilities by ensuring your accounting
records perfectly reconcile with your VAT returns.

For smart advice and trusted service on complex VAT matters, partner with CentaTax.
[email protected] or learn more at www.centatax.com

Is your Corporate Income Tax (CIT) strategy optimised for 2026?

With the South African corporate tax rate at 27%, proactive tax planning is essential. A
resident company is subject to CIT on its worldwide income, making cross-border
transactions and foreign debt particularly complex.

At CentaTax, we don’t just solve isolated issues; we consider the full spectrum of tax
and commercial consequences to deliver advice that aligns with your strategic
objectives.

Ready to optimise your tax position and mitigate risk?
Request a meeting with our team today: [email protected] or visit our website: https://www.centatax.com

Avoid this costly VAT mistake!

One of the most common reasons SARS disallows VAT input claims is the failure to obtain
or retain valid tax invoices.

If your supplier invoices do not meet the documentary requirements of the VAT Act, your input tax deduction may be denied, resulting in additional VAT payable, penalties, and interest.

Need help streamlining your VAT processes or preparing for a SARS verification?

Contact our team to ensure your VAT obligations are managed correctly:
[email protected]
or visit our website: https://www.centatax.com

This change, announced in the 2026 Budget, is intended to reduce administration and compliance costs for smaller, growing businesses.

If your annual taxable supplies are below R2.3 million, you may want to assess whether voluntary VAT registration, now available from R120,000, remains the right strategic move for your business.

Do not navigate these changes alone. Make sure your VAT strategy aligns with the current rules.

Contact our team to ensure your VAT obligations are managed correctly:
[email protected]
or visit our website: https://www.centatax.com

SARS not paying my VAT refund

FAQ: Why is SARS not paying my VAT refund?

A common reason is that the return is selected for audit or verification and SARS issues a request for information which the taxpayer does not respond to, often because the notice was not received. SARS may also require banking details verification, or hold payment where returns are outstanding or tax debts are unpaid.

For expert guidance on Tax compliance and system adjustments.
[email protected]
or visit our website: https://www.centatax.com

VAT Audits – Be Prepared

A VAT audit is not just about numbers. It is about whether your documentation and processes can support your position.

Common issues include:
• Incomplete supporting documents
• Incorrect input tax claims
• Timing differences in reporting

Once an audit starts, your ability to respond correctly is critical.
Preparation is key.

Contact our team to ensure your VAT obligations are managed correctly:
[email protected]
or visit our website: https://www.centatax.com

Delayed VAT refunds

FAQ: Why am I struggling with delayed VAT refunds?

If a vendor is entitled to a VAT refund, interest accrues if SARS does not pay within 21 business days of receiving a valid VAT return. The 21-business-day period may be suspended by SARS in certain instances, and other remedies exist to expedite a refund that is due.

For expert guidance on Tax compliance and system adjustments.
[email protected]
or visit our website: https://www.centatax.com

Corporate Income Tax – Get It Right Early

Corporate Income Tax is not just about filing an annual return. It starts with how your transactions are structured throughout the year.

Incorrect treatment or missed considerations can result in:
• Understated tax liabilities
• Penalties and interest
• Increased audit risk

Contact our team to ensure your VAT obligations are managed correctly:
[email protected]
or visit our website: https://www.centatax.com