February 2026

The 2026 South African Budget Speech introduced a range of tax and allowance adjustments affecting individuals, small businesses, and companies. Below is a clear summary of the confirmed changes that are most relevant to taxpayers and business owners.  VAT and Business Registration Thresholds  To ease the administrative burden on smaller enterprises, the VAT registration thresholds have been significantly increased:  These changes aim to reduce compliance pressure on smaller businesses and growing enterprises.  Capital Gains Tax (CGT) Adjustments  Several CGT relief measures were announced:  Personal Income Tax and Rebates  Medical Aid Tax Credits  Medical aid tax credits were increased as follows:  Subsistence and Travel Allowances  Corporate and Investment Taxation  Tax-free Savings and Retirement Funding  Fuel Levies and Sin Taxes  Effective from 1 April 2026, fuel levies will increase:  Excise duties on alcohol and tobacco were increased in line with inflation.  Offshore Investment Allowance  The Foreign Discretionary Allowance was doubled from R1 million to R2 million per year, enabling greater offshore investment and diversification opportunities.  LINK TO FULL BUDGET SPEECH – speech.pdf LINK TO SARS 2026 TAX GUIDE – Budget 2026 Tax guide.pdf  Contact us at info@pinionza.com or visit our website for more information.

In today’s rapidly evolving corporate landscape, organisations are subject to increasing scrutiny from regulators, investors, employees, and broader society. In South Africa, this scrutiny is shaped by the Companies Act 71 of 2008, together with leading governance standards such as the King IV™ Report on Corporate Governance. The Legal and Secretarial Department at Pinion SA, plays a pivotal role in ensuring that the organisation not only complies with statutory and regulatory requirements, but also demonstrates ethical and effective leadership. At the heart of this responsibility lies corporate governance—the framework through which a company is directed, managed, and held accountable. Corporate governance is more than a compliance exercise. It is recognised as a value creation and sustainability enabler, influencing decision-making, Shareholder and/or stakeholder confidence, organisational performance, and long-term resilience. When applied effectively, good governance strengthens reputation, builds trust, and embeds a culture of integrity throughout the organisation. “Good governance isn’t just a legal requirement—it is a key differentiator between sustainable organisations and those exposed to strategic, regulatory, and reputational risk.”  Understanding Corporate Governance Corporate governance refers to the systems, processes, and relationships through which an organisation is governed and controlled. It determines how authority is exercised, how decisions are made, and how accountability is ensured between shareholders, the board of directors, management, and other stakeholders. King IV™ defines corporate governance as the exercise of ethical and effective leadership by the governing body in pursuit of: Core Corporate Governance Principles The following principles underpin effective governance in South Africa: 1. Accountability Directors and executives must be answerable for their decisions, actions, and oversight. The board is ultimately accountable to the company and, by extension, its shareholders, for the organisation’s performance and conduct, as required under the Companies Act. 2. Transparency Transparent reporting and open communication enable shareholders and /or stakeholders to make informed assessments of the organisation’s governance, performance, and prospects. 3. Fairness Good governance requires equitable treatment of shareholders and consideration of legitimate stakeholder interests. This principle supports ethical leadership, prevents conflicts of interest, and reinforces trust in corporate decision-making. 4. Responsibility Boards and management have a duty to ensure compliance with applicable laws, internal policies, and ethical standards. Challenges in Modern Corporate Governance Today’s governance environment is more complex than ever. Organisations must manage: To meet these challenges, our legal and secretarial team can help clients set up governance frameworks that protect assets, improve decision-making, and reduce risk. Why Corporate Governance Matters at Pinion SA Strong corporate governance is essential not only for legal compliance, but for positioning the organisation as a responsible, efficient, and forward-thinking business. A well-designed governance framework supports sustainable growth, informed decision-making, and effective risk management. Sound governance practices help organisations to: By embedding governance principles into its operational and strategic processes, Pinion SA is better equipped to navigate regulatory change, market uncertainty, and evolving stakeholder expectations. The Role of the Legal and Secretarial Department at Pinion SA Our Legal and Secretarial Department supports strong corporate governance by ensuring that company records are properly maintained and that ongoing corporate compliance requirements are met. The department attends to the practical and administrative aspects of compliance with the Companies Act and related governance obligations. This function supports board and shareholder processes, assists with the preparation and maintenance of statutory documentation, and helps ensure that company records are accurate, current, and well managed. Through these services, the Legal and Secretarial Department contributes to effective governance, supports sound decision-making, and helps ensure that company affairs are conducted in a structured, compliant, and professional manner. How Pinion SA can help you Corporate governance is not a once off exercise—it is an ongoing commitment to ethical leadership, accountability, and sustainable value creation. For Pinion SA, effective governance provides a strong foundation for resilience, credibility, and long-term success. By continuously strengthening governance structures and practices, the company can confidently operate within South Africa’s legal framework while meeting the expectations of stakeholders in an increasingly complex corporate environment. If you are ready to take your business or farm to the next level and keep it strong, Pinion SA is here to support you. Contact us today to strengthen your governance framework and build a sustainable future. 📧 info@pinionza.com🌐 Visit our website for more information.

When compliance stops being background noise For years, COIDA sat quietly in the background. Employers registered, submitted returns, and carried on with business. Unless a serious injury occurred, it rarely demanded attention. That has changed. Most of the 2026 amendments commenced on 23 January 2026, with specific provisions following on 1 February 2026 and 1 April 2026. What was once a largely administrative regime now carries real-world enforcement, sharper timelines, and penalties that actually bite. COIDA is no longer passive, and employers can no longer afford to be either. What’s changed—and why it matters 1. Longer window to claim (and more exposure for you) Employees now have three years to lodge an injury or disease claim (up from a year in practice), meaning poorly recorded or unresolved incidents can resurface long after they occurred, creating avoidable compliance and financial exposure. If your incident capture and record‑keeping are weak, your risk profile just went up. 2. Coverage is broader and explicit Including subcontractors and domestic workers COIDA applies wherever someone works for you, including domestic workers. Using subcontractors doesn’t insulate you: if a contractor (or their subs) isn’t COIDA‑compliant, responsibility can shift back to the party who arranged the work. There are no remaining grey areas: if work is performed for you, you carry COIDA exposure unless you’ve checked (and can prove) everyone’s status. COIDA exposure must be understood and managed. 3. Reporting deadlines and penalties are now real COIDA has moved away from rarely used criminal sanctions and now relies on administrative penalties that are easier to impose and more likely to be enforced. Fail to report an accident to the Commissioner within 7 days and you face an administrative penalty of 10% of actual or estimated annual earnings for that year. Knowingly fail to report within 7 days, and you can be hit with a penalty equal to the full amount of compensation payable plus interest from the date of the accident. Refuse to provide requested additional information and the 10% penalty applies again. What once felt like paperwork now carries real consequences and paperwork delays are now expensive. 4. Inspections have teeth (and can happen anytime) Inspectors have wider powers to enter workplaces, examine and copy records, require disclosures, issue compliance orders, and escalate to the Labour Court. COIDA compliance can now be assessed even without a triggering incident. Treat yourself as “always audit‑ready.” 5. Transport you organise can trigger liability Employer-arranged transport, including informal lifts or regular pick-ups, can trigger COIDA exposure and may arise from pick‑up to drop‑off: coverage starts when the employee arrives at the employer‑designated pick‑up point and ends at the employer‑designated drop‑off. If you provide lifts or run shuttles, your “workday risk” might begin long before the clock does. 6. Road accidents and the RAF—clearer boundaries The amendment of Number 18 – section 36 – subsection (5) expressly excludes the Road Accident Fund (RAF) from being treated as a “third party” against whom the Compensation Fund or a licensed insurer may claim recoupment of damages or compensation paid under the Act. Also, subsection (6) states that an employee is not entitled to COIDA benefits where a road accident did not arise out of and in the course of employment. The lines are drawn to prevent double‑dipping and to focus on work‑related causation. 7. Medical reports and reimbursement Where an employee obtains a medical report at their own expense under the relevant section, the Compensation Fund, acting through the Commissioner, is responsible for reimbursing the full cost once the report is received and accepted. In practice, however, the employer remains procedurally involved: the report must be linked to a valid COIDA claim, supported by the required accident and employment documentation, and properly submitted into the claim process. Budget, process and documentation should anticipate this. 8. Record‑keeping is now a protection tool (and a penalty risk) Employers must retain all required COIDA-related records for five years and produce them on request. Failure brings a penalty of 10% of the actual or estimated annual assessment for the period you failed to keep records. Incomplete files are no longer minor oversights—they’re liabilities. 9. Compensation decisions aren’t “once and done” For permanent disability, the Commissioner may review claims at any time (as contemplated under section 90). Expect more active post‑award oversight. 10. “Earnings” definition is changing—watch the commencement The amended definition of “earnings” is aligned to the Income Tax Act’s Fourth Schedule, but that specific change has not yet commenced. When it does, it will materially affect assessments, compensation calculations and how penalties are computed. Track this closely to prevent downstream recalculations. 11. Rehabilitation and return‑to‑work are expected, not optional The Act’s emphasis on rehabilitation, reintegration and modified duties is clear. Employers are expected to cooperate in rehabilitation and actively support a safe return to work where reasonably possible—across temporary and permanent injuries. Build this into your IOD workflow. 12. Mandators and contractors—no more grey zones The amendments clarify mandators (principals) and contractors/sub‑contractors: ensure all are registered with the Compensation Fund. An employer may pay on behalf of mandators/contractors and then recover those amounts. Principal contractors must verify downstream compliance before a spade hits the ground. What will affect your IOD procedures the most What employers should be doing now At a minimum, employers should: If these have not been reviewed since the amendments, compliance is likely lagging behind the law. Appendix: commencement map (high level) Note on “earnings”: The amendment aligning the COIDA “earnings” definition with the Income Tax Act (Fourth Schedule) has not yet commenced—track the official notice to know when to switch your calculations. How Pinion helps COIDA is louder now, and “we’ll sort it out when it happens” is a costly strategy. Pinion helps employers stay ahead of enforcement with practical systems that withstand inspections: stronger OHS controls to reduce incidents, structured injury and rehabilitation management to cut downtime, and COIDA processes that hold up under scrutiny—reporting timelines, record‑keeping, contractor checks and transport risk included. Pinion also supports employers with input into COIDA-related

Staying on top of SARS tax & regulatory due dates is essential to avoid penalties, interest, and compliance headaches. Below is your practical, plain English calendar covering what each deadline is, why it matters, when it’s due for the 2026/2027 cycle, where to submit, and what happens if you miss it.   Quick note on years:  Monthly & Bimonthly Compliance (All Year)  PAYE (EMP201) submissions & payments  VAT — Manual submissions & payments  VAT — Electronic (eFiling) submissions & payments  Excise duties (Customs & Excise)  Provisional Tax (Individuals – PIT) for the 2026 tax year (1 Mar 2025 – 28 Feb 2026)  Below are the standard due dates for a February yearend; if your year-end differs, see CIT/PIT general rule next section.  Provisional Tax (Companies – CIT) — General rule for any approved yearend  Quarter Markers (useful for planning)  End of 24/25 Financial Year  Start of 25/26 Financial Year  Annual Filing Season — Individuals (ITR12) & Trusts (ITR12T)  Start of Filing Season 2026 (Individuals)   Start of Filing Season 2026 for Trusts (ITR12T)  End of Filing Season 26 for Individuals  End of Filing Season (general reminder)  What & why: SARS announces the official “end of filing season” dates each year (nonprovisional vs provisional). For 2025, nonprovisional closed 20 Oct 2025; provisional/trusts closed 19 Jan 2026—a useful pattern for planning 2026. [sars.gov.za], [fullviewco.za]  Employment and Skills Reporting  Employer Interim Reconciliation (EMP501) submission deadline  Employment Equity (EE) Reporting  Consequences of Non-Compliance with EE Legislation  Failure to comply with Employment Equity requirements may result in:  Skills Development Reporting (WSP and ATR)  Benefits of Submitting WSP and ATR on Time  Submitting both reports by the required deadline allows employers to:  Risks of Not Submitting Skills Development Reports  If WSP and ATR submissions are not completed by the deadline:  Submission Process and SETA Allocation  Examples of Common SETAs  COIDA Return of Earnings (ROE) – 2026 Overview  According to the latest available guidance on South Africa’s Compensation for Occupational Injuries and Diseases Act (COIDA), the 2026 Return of Earnings (ROE) submission is expected to follow the standard annual process applied in previous years.  Important note: The information below is aligned with patterns from the 2025/2026 submission cycle. As the official Government Gazette for 2026 is usually issued early in the year, employers should treat these requirements as indicative rather than final.  1. Important Dates  2. Required ROE Information  Employers are required to complete and submit the W.As.8 Return of Earnings form, which includes the following details:  3. Financial Thresholds (Expected for 2025/2026)  4. Submission Process  5. Documentation and Information Needed  To ensure a successful submission, employers should have the following available:  Disclaimer  Employers are strongly encouraged to verify final submission dates, thresholds, and requirements by consulting the Department of Employment and Labour or a qualified professional advisor once the official 2026 Government Gazette is released.  POPIA & PAIA Compliance  POPI Compliance (Protection of Personal Information Act)  POPIA requires organisations to lawfully collect, process, store, and protect personal information. Compliance is ongoing and should be reviewed annually.  Key compliance requirements:  Where registration is done:  Information Regulator eServices Portal (IO & DIO registration and status)  Why annual reviews are essential:  Failure to comply can lead to:  PAIA Annual Report Submissions (Promotion of Access to Information Act)  All public and private bodies must submit an annual PAIA report to the Information Regulator — even if no information requests were received.  Failure to submit can lead to:  Additional “Don’t Miss” Dates  CIT Provisional Tax Payments (for Feb yearend companies) within 2026/2027 cycle  Employer Annual Reconciliation (EMP501)  Penalties & Consequences — Summary Cheat Sheet  “Where to Submit” — One page routing  Pro Tips for you and your team  Legislative Reference  Income tax Act Section 67 Effective February 2026, the South African Revenue Service (SARS) will apply Section 67 of the Income Tax Act with no exceptions. Employers will be required to include valid Income Tax Reference Numbers for every employee, who is liable to pay tax or have PAYE deducted, when submitting their PAYE reconciliations. If an employee is below the tax threshold, a valid tax number is not necessary for them in order to file the EMP501 return. Any reconciliation files that do not contain these numbers will be declined, and employers who fail to comply will face administrative penalties, as the previously applied leniency has been discontinued.  Section 67 Compliance Requirements for 2026  This enforcement forms part of SARS’s broader initiative to improve accuracy, strengthen compliance, and enhance data integrity across PAYE reporting systems.  Ready to Take Control of Your Compliance?  Contact us today!   info@pinionza.com 🌐 https://www.pinionafrica.com  Disclaimer: The information contained below is provided for general information purposes only and is subject to change in accordance with updates issued by the relevant authorities. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind regarding the completeness or reliability of the information. We accept no liability for any errors, omissions, or for any loss or damage arising from reliance placed on the information provided.