WHAT GLOBAL TAX REFORM MEANS FOR BUSINESSES IN KWAZULU-NATAL

Praksha Jaga, Associate Director, EY South Africa Tax

Businesses in KwaZulu Natal are feeling the effects of constant and interconnected change more sharply than ever. Global geopolitical tensions continue to reshape trade relationships, and supply chains linked to the Port of Durban remain exposed to disruptions that quickly ripple across the province’s manufacturing, retail, logistics and export sectors.

At the same time, tax and trade policy in South Africa is evolving at pace, particularly with the introduction of the Organistion for Economic Co operation and Development (OECD) Pillar Two global minimum tax rules. These rules set a 15% minimum effective tax rate for large multinational groups with revenues above €750m, adding new layers of complexity for organisations operating across borders. Technology change, driven by data, automation and artificial intelligence, is also accelerating, altering how businesses of every size operate, plan and compete.

Recent findings from the EY Tax and Finance Operations Survey highlight how tax and f inance leaders are responding to this environment. The survey, which gathered the views of 1,600 senior leaders across 30 jurisdictions and 22 industries, points to a clear shift in how organisations are adapting their operating models.

Many are integrating generative and agentic AI into core processes to manage geopolitical volatility, respond to evolving trade and tariff regimes and address talent shortages. The sentiment is consistent with what is being observed among KZN businesses navigating export market uncertainty, currency fluctuations and the need for real-time insight to support operational decisions.

A notable theme emerging from the survey is that successful organisations approach change as an ongoing condition rather than a sequence of isolated projects. Leaders who treat transformation as a continuing capability are better positioned to make informed adjustments, strengthen resilience and identify opportunities for growth. The same pattern holds true locally, where KZN businesses that have invested in better data, systems and scenario planning tend to be more agile in responding to supply chain bottlenecks, regulatory shifts and the competitive pressures of regional trade.

The pace of adjustment is accelerating. More than eight in ten respondents to the survey indicated they are making moderate or significant changes to their business operations – including supply chains – over the next two years, a marked increase from the previous year. Building agility into tax and finance operating models is becoming an important part of this shift, particularly as organisations prepare for the impact of global minimum tax rules and aim to achieve greater transparency, efficiency and accuracy in reporting.

Tax and finance teams are also focusing more intently on the foundations that support technology adoption. Leaders recognise that data quality and accessibility influence the value AI can unlock, from forward-looking insights to more automated compliance processes. The South African Revenue Service’s investment in digital systems and Evolving rules, digitalisation and operational pressures are prompting new approaches to agility and decision-making. - Praksha Jaga automation is reinforcing this direction, and interactions with the tax authority are gradually becoming more streamlined as these tools mature.

Many organisations continue to explore external support with specialist capabilities in areas such as AI, data and global regulation to help them progress more quickly and manage complexity. This is particularly relevant for KZN businesses participating in international supply chains, cross-border operations or multinational group structures, where regulatory developments can have material operational and financial implications. Across the board, the message is consistent: agility, supported by reliable data, adaptable operating models and a clear understanding of the regulatory landscape, is becoming central to navigating uncertainty.

About EY

EY operates as a global professional services organisation, working across assurance, consulting, tax, strategy and transactions. Its teams use data, AI and advanced technology to support clients in navigating complex regulatory, operational and market environments. With sector specialists and a connected network spanning more than 150 countries and territories, EY provides coordinated services to help organisations address current challenges and plan for the future.

T: +27 31 576 8000 E: praksha.jaga@za.ey.com W: www.ey.com

Praksha Jaga, Associate Director, EY South Africa Tax