Taxation

12 Months Ended

Jun. 30, 2026

TAXATION

Taxation


			2026			2025	2024
for the year ended 30 June		Note	Rm			Rm	Rm
South African normal tax				5 658		3 759	8 128
current year				5 715		4 389	8 212
prior years¹				(57)		(630)	(84)
Foreign tax				1 714		2 024	2 028
current year				1 761		2 055	2 045
global minimum top-up tax²				36		19	—
prior years				(83)		(50)	(17)

Income tax		10		7 372		5 783	10 156
Deferred tax – South Africa		11		(700)		(336)	709
current year³				699		(152)	570
prior years⁴				(1 399)		(184)	139

Deferred tax – foreign		11		(2 523)		(891)	(1 126)
current year⁵				(2 434)		(496)	(1 031)
prior years				47		(51)	(102)
tax rate change⁶				(136)		(344)	7
				4 149		4 556	9 739

Relates to Section 12L (South African income tax incentive for energy-efficiency) allowances refer footnote 4.

In respect of Pillar Two that introduced a 15% global minimum effective tax rate for large multi-national entities. The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax.

Mainly due to the assessed loss utilised in Sasol South Africa Limited (SSA) in 2026.

Mainly attributable to the R850 million prior year Section 12L energy efficiency allowance claim, which increased the assessed loss and consequently the deferred tax asset recognised.

The increase relates mainly to tax losses in the US, unwinding of deferred tax liability on Mozambique assets and current year impairments.

2026 mainly relates to the effect of future tax rate change in Germany on the realisation of deferred tax balance. 2025 relates mainly to Louisiana (US) tax rate reduction that was enacted.

Uncertain tax positions

Sasol companies are involved in tax litigation and tax disputes with various tax authorities in the normal course of business. A detailed assessment is performed regularly on each matter and a provision is recognised where appropriate. Although the outcome of these claims and disputes cannot be predicted with certainty, Sasol believes that open engagement and transparency will enable appropriate resolution thereof.

Sasol Financing International (SFI)/South African Revenue Services (SARS)

As reported previously, SARS conducted an audit over a number of years on SFI, which performs an offshore treasury function for Sasol. The audit culminated in the issue by SARS of revised tax assessments, based on the interpretation of the place of effective management of SFI. A contingent liability of R3,1 billion (including interest and penalties) in respect of this matter remains as at 30 June 2026.

9	Taxation continued

SARS dismissed Sasol’s objection to the revised assessments and Sasol appealed this decision to the Tax Court. In parallel Sasol launched a review application in respect of certain elements of the revised assessments in respect of which the Tax Court does not have jurisdiction. Sasol also brought a review application against the SARS decision to register SFI as a South African taxpayer. SFI and SARS have agreed that the Tax Court related processes will be held in abeyance, pending the outcome of the judicial review applications. The two review applications were heard in the High Court in November 2022 and on 1 August 2023, the High Court handed down its decision dismissing both the SFI review applications. SFI filed an application for leave to appeal the High Court decision. On 20 September 2024 the High Court granted SFI’s application for leave to appeal the High Court decision to the Supreme Court of Appeal. The matter was heard at the Supreme Court of Appeal on 25 November 2025 and the judgment is currently pending. The review applications relate to the challenge by SFI of certain administrative decisions of SARS and the Supreme Court of Appeal decision does not directly affect the merits of the substantive dispute before the Tax Court, which remains in abeyance while the appeal of the review applications continues.


	2026	2025	2024
	%	%	%
Reconciliation of effective tax rate
The table below shows the difference between the South African enacted tax rate compared to the effective tax rate in the income statement. Total income tax expense differs from the amount computed by applying the South African normal tax rate to profit before tax. The reasons for these differences are:

South African normal tax rate	27,0	27,0	27,0
Increase/(decrease) in rate of tax due to:
disallowed expenditure¹	2,6	13,4	(2,3)
disallowed share-based payment expenses	0,1	0,2	(0,1)
different tax rates	0,9	2,5	(7,9)
tax losses not recognised²	1,0	11,8	(49,6)
translation differences	0,3	—	—
other adjustments	0,1	2,1	—
(Decrease)/increase in rate of tax due to:
exempt income³	(0,5)	(3,8)	0,2
share of profits of equity accounted investments	(0,1)	(3,6)	1,4
utilisation of tax losses	—	(1,7)	0,8
investment incentive allowances	(0,2)	(0,3)	0,2
translation differences	—	(0,1)	0,4
capital gains and losses	(0,1)	(0,1)	—
change in corporate income tax rate	(0,8)	(2,8)	—
prior year adjustments⁴	(8,0)	(7,5)	—
other adjustments	—	—	1,7
Effective tax rate	22,3	37,1	(28,2)

Includes non-deductible expenses incurred not deemed to be in the production of taxable income mainly relating to non-productive interest, project costs, as well as non-deductible impairments. The decrease from 2025 is mainly due to the lower Italy impairment recognised in 2026.

Mainly relates to Sasol Italy tax losses incurred for which no deferred tax assets are recognised (in 2025 relates to the reversal deferred tax asset previously recognised) as it is no longer considered probable that sufficient future taxable income will be available in the foreseeable future to fully utilise these losses.

2025 mainly relates to contingent consideration from the Uzbekistan GTL LLC disposal.

Mainly related to Section 12L allowances claimed in South Africa relating to prior years.