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Dear Client, Tax season is here again, and many South Africans will receive an auto-assessment from SARS. Auto-assessments can be very convenient. SARS uses information from employers, medical schemes, retirement funds, banks and investment providers to pre-populate your tax return. In many cases, this makes the process quicker and easier. However, easier does not always mean correct. We have already seen cases where auto-assessments were not fully accurate or where important information still needed to be checked. That is why our message this tax season is simple: don’t just accept your SARS assessment without reviewing it properly first. Between 1 July and 12 July 2026, SARS will notify selected taxpayers by SMS or email if they have been auto-assessed. The notice will show whether you are due a refund, whether you need to pay SARS, or whether there is no amount payable or refundable. If you receive an auto-assessment and everything is correct, you do not need to submit a separate return. But before accepting it, you should still log in to SARS eFiling and check the details carefully. If something is incorrect or missing, you should update and submit your tax return through eFiling. A few practical tips for tax season Before accepting or submitting anything, make sure you have the correct supporting documents on hand. These may include your IRP5, medical aid tax certificate, retirement annuity contribution certificate, investment tax certificates, tax-free investment certificate, donation certificates, rental income records and any other relevant supporting documents. Do not only look at the refund or amount payable. It is tempting to focus only on whether SARS says you are getting money back, but the more important question is whether the information behind the assessment is correct. Check that your personal details and banking details are up to date. Incorrect banking details can delay refunds, while outdated contact details may mean you miss important communication from SARS. Keep your supporting documents for at least five years from the date of submission, as SARS may request them later to verify your return. What to look out for on your investments Investment income is an area where clients should be especially careful. SARS may receive information directly from financial institutions, but you should still compare the information on your return with your tax certificates. Here are a few important items to check: Interest income Check whether all local and foreign interest has been included correctly. Even small interest amounts from bank accounts or money market investments can form part of your taxable income. Dividends and foreign dividends Local dividends are generally subject to dividends tax, but they may still appear on your tax certificate. Foreign dividends can have different tax treatment and should be reviewed carefully. Capital gains and losses If you sold or switched investments during the tax year, there may be a capital gain or loss. This can happen even if you did not withdraw the money into your bank account. For example, switching between funds can sometimes trigger a disposal for capital gains tax purposes. Retirement annuity contributions Make sure your retirement contributions are correctly reflected. If your contributions were more than the amount allowed as a deduction for the year, the excess amount may be carried forward and used in future years. Your notice of assessment, known as the ITA34, should reflect this. Tax-free investments Although growth and income in a tax-free investment are not taxed, your contributions still need to be monitored. Make sure your tax-free investment certificate is correct and that you have not exceeded the annual or lifetime contribution limits. Living annuity income If you receive income from a living annuity, check that the income and PAYE deducted are correctly reflected. It is also important to keep your tax affairs up to date, as SARS can recover outstanding tax debts directly from certain third parties, including income providers. Two-pot retirement withdrawals If you made a withdrawal from the savings component of your retirement fund, this amount is taxed at your marginal income tax rate. Your fund administrator should issue an IRP5 or IT3(a) certificate showing the withdrawal and any tax withheld. Be careful not to assume that the tax deducted at the time of withdrawal fully settles your final tax position. If you also earned other income during the year, such as a bonus, rental income or investment income, you may still have additional tax to pay when your return is assessed. A simple checklist before you accept or submit Before finalising your tax return, ask yourself: Have I checked my SARS auto-assessment in detail? Have I compared the SARS information to my actual tax certificates? Are all my sources of income included? Are my investment certificates reflected correctly? Are my retirement contributions correct? Have I checked whether any capital gains or losses apply? Have I included medical aid, donation or other allowable deductions where relevant? Are my banking and contact details correct? Have I saved my supporting documents? Tax season does not need to be stressful, but it does require care. SARS has made the process more automated, but the responsibility to ensure your return is complete and accurate still remains with you. Taking a few extra minutes to check your assessment properly can help you avoid delays, unexpected tax bills or corrections later. PJ Botha CFP ® CA(SA)

South Africa has officially been removed off the Financial Action Task Force's (FATF) grey list as of October 24, 2025. This comes after 33 months of work to strengthen the country's anti-money laundering and counter-terrorism systems. Why Was South Africa Grey Listed in the first place? In February 2023, the FATF placed South Africa on the grey list due to weaknesses in its ability to enforce anti-money laundering regulations. These included ineffective investigations and prosecutions, particularly in severe money laundering and terrorist financing cases. To get off the list, South Africa needed to accomplish 22 action items. By June 2025, the FATF reported that all items had been handled. Although some areas, like as prosecutions, require improvement, this did not prevent the country from being removed from the list. What is the Function of the Financial Intelligence Centre (FIC)? The Financial Intelligence Centre helped South Africa achieve FATF regulations. It enhanced how it oversees businesses and professions that deal with money but are not banks, employing stronger risk assessment tools and compliance measures. The FIC also collaborated extensively with law enforcement, promoting the use of financial intelligence in investigations. This resulted in genuine results, such as the freezing of approximately R157 million in suspected illegal funds and the recovery of nearly R144 million in stolen money. What impact did the listing have on the Economy and Investments? Being on the Grey List increased the cost and complexity of foreign transactions. It also harmed investor confidence, particularly while South Africa holds the G20 presidency in 2025. Financial experts predict that now that the country is no longer on the list, investor sentiment will improve. According to PPS Investments, this may lead to: Improved access to global capital. A stronger Rand. Increased interest in South African stocks A better climate for the local property markets. This change contributes to a more favourable view for South Africa's economy and investment landscape. How do South Africa compares to other countries that was grey listed? South Africa's 33-month stint on the grey list is comparable to other countries. Tanzania required 33 months, Nigeria 25 months, Mozambique 37 months, and Burkina Faso 57 months. What's next? South Africa is already planning for the next FATF mutual evaluation, which is scheduled for 2026-2027. The FIC states that, while leaving the grey list is a significant step forward, the country must continue to improve its mechanisms for combating financial crime.

For a long time, the South African Reserve Bank (SARB) prohibited money from being transferred directly from local trusts to offshore trusts. You may have had offshore exposure in your local trust through asset swops and other investment vehicles, but if you want to distribute to overseas beneficiaries, you must first withdraw funds from the trust and then transfer to them through the SARB. This recently changed. SARS declared that beginning August 1, 2023, it will evaluate and possibly approve petitions to transfer funds from South African trusts to offshore trusts. This adjustment coincides with the South African Reserve Bank's (SARB) recent relaxation of several currency control regulations. While this new alternative provides numerous prospects, there are tight criteria and a thorough application process. If you are an investor or trustee, you must understand these requirements. There is certainly no one-size-fits-all answer, and the drawbacks and benefits should be examined while deciding. Drawbacks: 1. Complex Regulatory Requirements. • Strict compliance required: The procedure is extensive, necessitating meticulous documentation and adherence to both SARS and SARB regulations. • Long approval process: Each application is assessed individually, which can take weeks or even months. 2. Cost • Legal, tax, and accounting assistance can be costly. • Administrative burden: Extensive documentation and regular reporting increase management time and expenses. 3. Tax obligations • The South African trust must pay all relevant taxes (capital gains, dividends, etc.) before distribution, preventing tax deferral to the recipient. Money held in a trust is often taxed at a higher rate than money held in the name of a company or individual. 4. Uncertainty and Evolving Practice • New regulations may impact future distributions and compliance needs. • Disputes: Failure to meet SARS or SARB rules may result in delayed or refused distributions. Benefits: 1. Global Wealth Diversification. Offshore trusts may provide superior asset protection during political or economic volatility in South Africa. 2. Succession and Estate Planning • Multi-Jurisdictional Estate Planning: This allows families with members living in different countries to structure their affairs more efficiently. • Offshore trusts facilitate the transfer of money to beneficiaries outside South Africa, simplifying inheritance processes. 3. Tax preparation • Offshore trusts can optimise worldwide tax positions with proper preparation and professional counsel, but must follow all applicable requirements. 4. Regulatory Clarity • Official Approval: SARS and SARB now provide clear protocols for trustees and investors, eliminating legal risks. The ability to transfer money from a South African trust to an offshore trust is a useful tool for global estate and investment planning. Professional guidance is essential to maximise benefits and avoid pitfalls.

We made a podcast, The F Word , but it is all about money. The title "F word" comes from the fact that "money" is seen as a swear word in our society — even more so when people are at home. The truth is that your kids will learn about money somewhere else if you don't teach them. Schools don't teach it very well, and you don't want American media to teach them, because they will learn how to live a life full of debt and buying things. There are only six out of every hundred people who can retire independently in South Africa. We need to give our children the best chance to be one of those six people. There are several concepts you want to teach your children, and you can do so in several different ways: 1) Managing Expenses Kids should learn early on that they can't always get what they want, even if they (you) can afford it. Giving them options is what you want to do. That's why it's a good idea to give them some money to work with. Example: You can get either the new computer game or the new shoes. Choices are what life is all about. 2) Make Extra Money If your child wants the extra pair of shoes and the new video game, that's a good chance for them to learn that if they work hard, they can make extra money and then buy whatever they want. Ideas: Take out the trash Clean their rooms Wash your cars Older kids can learn how to be entrepreneurs so they can sell something or make something of value to earn extra money. 3) Start to Save It's smart to teach your children how to save money by setting aside 20% to 40% of their budget or income for a big expense. This teaches delayed gratification , and if they want something big in the future, they have to forgo short-term pleasures. You can also start to teach them the difference between investment and saving when they are in high school. Examples: Set up a bank account in the child's name and give them "interest" if they save a certain amount each month Open an investment account directly for the child Financial responsibility starts with the parents , and it is never too early to start training your kids to be smart with money. The things you teach your child will have an impact on their life for a long time and will compound , just like investments.