SARS Nets R1.9 Trillion: What the 2025 Tax Stats Reveal About PIT, CIT, and VAT Trends
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South Africa’s tax base continues to expand—despite economic headwinds. The 18th annual Tax Statistics bulletin, jointly released by SARS and National Treasury, offers a deep dive into revenue trends from 2021 to 2024, and fiscal performance through to 2024/25.
For accountants, the data tells a story of resilience, shifting sector dynamics, and the growing influence of compliance interventions on revenue collection.
Tax Figures at a Glance
Gross tax collected (2024/25): R2.3 trillion (↑6.9% YoY)
Net revenue after refunds: R1.9 trillion (↑6.6% YoY)
Tax-to-GDP ratio: Rose to 25.1%, up from 22.3% in 2020/21
Cost to collect: Down to 0.72% of total revenue from 0.85% in 202/21
Compliance revenue secured: R304 billion (↑16.7% from 2023/24)
Personal Income Tax (PIT) – Still the Main Contributor
PIT remains the largest single revenue source, contributing 39.5% of total collections. This growth was driven by:
PAYE growth in financial services and community sectors
Early Two-Pot retirement withdrawals exceeding expectations
A taxpayer base of 27.1 million, with 7.7 million required to file
Assessed PIT Snapshot (2024):
38% of taxpayers reside in Gauteng
Avg taxable income in Joburg Metro: R480,318
Total assessed income: R2.7 trillion
Avg tax rate: 20.8% (slightly down from 21.1%)
Deductions were dominated by retirement fund contributions (R278.7 billion, or 83.7% of all deductions).
Company Income Tax (CIT) – Still Dominated by a Few Large Players
Of the 1.33 million companies assessed for the 2023 tax year:
Only 21.7% declared positive taxable income,
54% broke even (taxable income of zero),
24.3% reported assessed losses.
This continues the trend of a narrow CIT base—where most companies either aren’t generating taxable profits or are reporting losses. For accountants, this signals the importance of:
Ensuring accurate loss carry-forwards,
Preparing for increased SARS scrutiny on recurring losses, and
Evaluating business viability or structure issues with clients consistently declaring nil income.
At the top of the spectrum are just 630 companies (0.2% of those with positive taxable income) that accounted for 59.6% of total CIT assessed. This reinforces the outsized role that large corporates play in corporate tax revenue—and suggests that compliance efforts and audits will likely continue to focus heavily on this top tier.
VAT Trends – Consumer Confidence Shows in Domestic VAT
In 2024/25:
900,285 VAT vendors registered, 55.2% active
82.5% of active vendors were companies/CCs, contributing 93.8% of VAT payments
Individuals (10.4% of active vendors) made up just 1.6% of payments
VAT growth was fuelled by:
Lower interest rates,
Early pension withdrawals, and
A rise in household consumption.
Import Taxes – Machinery and Vehicles Dominate
Import VAT contributed 14.1% of total tax
Customs Duties added 4.1%
Machinery/Electronics (27%) led Import VAT
Vehicles/Aircraft (25.6%) dominated Customs Duties
Main import partner? China, once again topping the list.
Decline in Mining Royalties
Mineral royalties dropped 33.4% (to R10.6 billion) due decline in PGM, coal, and iron prices. This was partly offset slightly by stronger gold prices.
What This Means for Accountants
Client compliance is key
SARS’s enhanced compliance tools and audits helped secure R304 billion—a 16.7% increase over the previous year.
Sector-specific insight matters
CIT trends show that financial services clients remain profitable, while mining clients may need closer risk reviews.
Early retirement access impacts returns
The Two-Pot system has already made a fiscal impact—accountants must advise clients on the tax consequences of withdrawals.
VAT registration and activity are under scrutiny
SARS is monitoring vendor activity, especially among sole proprietors with low contribution rates.
Read more on the tax statistics in the following publications:
