King V: A New Era for Corporate Governance in South Africa.
The forthcoming King V Code of Corporate Governance marks a major milestone in South Africa’s governance landscape. Developed under the auspices of the Institute of Directors in South Africa (IoDSA), King V is set to launch on 31 October 2025, following a national consultation process earlier this year. The draft was released for public comment on 24 February 2025, with submissions closing on 4 April 2025. Since the first King Report in 1994, the King Codes have shaped South Africa’s reputation for world-class corporate governance. King V updates this legacy for a fast-changing business environment, addressing technological disruption, ESG imperatives, and rising stakeholder expectations. It refines the framework introduced under King IV (2016), aiming to be both more streamlined and practically applicable to organisations of all sizes — from listed companies to state-owned entities and non-profits.
What is changing?
King V maintains the outcomes-based logic that has defined the King framework: ethical culture, good performance, effective control, and legitimacy remain at its core. It strengthens the principle of integrated thinking, encouraging organisations to recognise how economic, environmental, and social factors interact in long-term value creation. To make the Code more accessible, IoDSA has reduced the number of principles from 17 to 12 and introduced clearer disclosure guidance.
The new Code elevates sustainability and human rights within governance, introducing concepts such as impact materiality and referencing ubuntu as a guiding value. A notable addition is the standardised disclosure template, designed to promote consistency and comparability in how organisations report their governance practices. This practical tool will help companies demonstrate alignment with King V’s principles or transparently explain deviations.
What to expect after launch
Although King IV remains in effect for now, IoDSA’s October launch signals a transition period in which organisations should begin assessing readiness for King V. Boards and company secretaries should review internal policies, sustainability disclosures, and digital governance frameworks to ensure alignment once the new Code becomes effective. Further details on the official effective date and phase-in arrangements are expected to be announced alongside the final publication.
While voluntary, the King Codes have long influenced investor confidence, reputational standing, and regulatory engagement. King V extends this tradition by embedding ethical leadership and sustainable value creation more deeply into corporate strategy. Organisations that proactively align with King V’s principles will be well-positioned to demonstrate responsible, transparent, and forward-looking governance in an evolving business landscape. Should you require professional advice in this regard do not hesitate to contact our offices.
South Africa’s Medium-Term Budget Tabled for 12 November: What to Expect?
Finance Minister Enoch Godongwana will deliver South Africa’s Medium-Term Budget Policy Statement (MTBPS) on 12 November, outlining the government’s fiscal and economic plans for the next three years. Often referred to as the “mini-budget,” the MTBPS provides a crucial update between February’s main Budget speeches, setting the tone for spending, borrowing, and reform priorities. This year’s statement comes at a challenging time for the economy. Growth remains sluggish, tax revenues have underperformed, and public debt is approaching 75% of GDP. Treasury is expected to reaffirm its commitment to fiscal discipline while balancing urgent social and infrastructure spending needs.
While significant tax increases are unlikely at this stage, there may be indications with regards to next year’s fiscal strategy—particularly on corporate and personal tax adjustments, expenditure ceilings, and plans to improve the efficiency of state-owned enterprises. The speech is also expected to highlight ongoing structural reforms under Operation Vulindlela, with renewed emphasis on energy security, logistics, and public-private partnerships to unlock investment.
For businesses, investors, and public-sector partners, the MTBPS serves as an important signal of the government’s fiscal direction and priorities ahead of the 2026 national budget. Clarity on debt management, infrastructure financing, and economic growth measures will shape expectations for inflation, interest rates, and business confidence in the months ahead.
SARS Expands Oversight of Crypto Transactions.
South Africa’s tax authorities are preparing to implement new reporting standards that will bring cryptocurrency transactions squarely within the formal tax net. The South African Revenue Service (SARS) has released draft regulations to adopt the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD), alongside updates to the Common Reporting Standard (CRS).
The proposed framework is expected to take effect from 1 March 2026. Once in force, it will require crypto-asset service providers—including exchanges, brokers, and wallet operators—to collect and report detailed data on users’ transactions. This includes information on the acquisition, sale, and transfer of crypto assets, the value of each transaction in rand, and the tax residency and identification numbers of users.
The regulations aim to align South Africa with global transparency standards that enable tax authorities to automatically exchange information on cross-border holdings and digital-asset activities. Similar frameworks are being adopted across major jurisdictions, creating a unified international approach to crypto-asset reporting.
For taxpayers, the implications are significant. SARS will gain direct access to transactional data previously considered difficult to trace. Income or capital gains derived from crypto trading, staking, or lending must be declared in the same manner as other investments.
SARS has indicated that enforcement will intensify once the framework is operational. Taxpayers who have not yet disclosed crypto-related earnings are encouraged to make use of the Voluntary Disclosure Programme (VDP) to regularise their tax affairs before the reporting regime takes effect. Should you require professional advice in this regard do not hesitate to contact our offices.
Scam Alert: Beware of “Final Demand – Debt Management” Letter.
Taxpayers should be alert to a rising phishing threat – fraudsters are sending out fake PDF letters with subjects such as “LEGAL RULING SUMMON DEMAND AS AT 21 10 2025” (though the subject line may vary).
These letters purport to come from SARS’s Debt Management Unit and contain links to fraudulent websites designed to capture your personal and financial information.
If you receive a suspicious email, you should:
- Visit SARS’s official Scams & Phishing webpage and compare the email you received with known scam examples.
- Forward the suspicious email to: phishing@sars.gov.za
Stay vigilant, protect your credentials—and when in doubt, log into your eFiling account independently rather than following unexpected email links.
