With the tax filing season finally here, many South Africans are grappling with the impending deadlines and responsibilities that accompany the annual ritual of submitting income tax returns.
Johan Werth, Franchise Principal and Financial Adviser at Consult by Momentum, offers vital advice and highlights common pitfalls to steer clear of this season, assuring taxpayers of the best strategies to stay compliant with SARS.
As of July, South African taxpayers are reminded that the tax filing season officially commences, with auto assessments activated from July 7 to 20, 2025. For those who fall into the non-provisional taxpayer bracket and aren’t auto-assessed, the window for submitting income tax returns runs from July 21 to 20 October 20, 2025.
Understanding the timeline is crucial, especially for three distinct categories of taxpayers: The Proactive, who promptly take action; The Procrastinator, who leaves everything until the eleventh hour; and The Panicker, who might feel overwhelmed and hope the issue will resolve itself.
The tax filing season is a mandated period for all taxpayers to submit their income tax returns to the South African Revenue Service (SARS) for the preceding tax year, which runs from March 1, to February 28 the following year. For the upcoming period, this entails earnings within the span from March 1, 2024 to February 28, 2025.
It’s essential to note that filing is not optional for everyone; certain individuals are required to submit an income tax return, including:
South African residents and non-residents who earned income in South Africa during the tax year.
Individuals with capital gains, foreign income, or dividends not subject to withholding tax.
Those with multiple income sources, such as salary and rental income.
People who earned above the tax threshold for the year (e.g., over R95,750 for under-65s in the 2025 tax year).
Taxpayers wishing to claim deductions on expenses like medical bills or retirement savings.
Provisional taxpayers, including freelancers and other self-employed individuals.
For many, the tax filing process can be daunting, and mistakes are not uncommon. Below are some of the frequent pitfalls to avoid this season:
Missing the deadline: Late submissions can incur penalties, so set up reminders and file early, even if you’ve been auto-assessed.
Submitting incorrect or incomplete information: Double-check all details, as outdated information or errors can cause delays. Utilise SARS eFiling's guided tools for assistance.
Ignoring your auto-assessment: Review your assessment carefully; don’t accept it automatically. Ensure you’ve considered all eligible deductions before filing.
Not claiming eligible deductions: If you’ve incurred medical costs, travel expenses, or made retirement contributions, these can reduce your tax liability—provided you have the necessary proof.
Poor document management: Keep key documents such as receipts and tax certificates for a minimum of five years to safeguard against audits.
Neglecting to file an income tax return when required can lead to serious consequences. SARS may impose monthly administrative fines of up to R16 000, initiate legal action, and restrict access to crucial services, including home loans and emigration. It’s crucial to recognise that failing to file can constitute a criminal offence.
To ensure a more organised and beneficial tax filing experience, consider the following strategies:
Maintain all supporting documents for the required duration, either digitally or in the cloud.
Don’t overlook potential deductions such as retirement annuities and home office expenses; however, ensure you claim only what you are legitimately eligible for.
Always check your SARS auto-assessment, especially if your income stemmed from diverse sources.
Don’t hesitate to consult with a professional adviser if you find tax matters complex or overwhelming.
This tax filing season doesn't have to be a source of stress. By staying informed and proactive, individuals can avoid common pitfalls that may lead to complications further down the line.
Saturday Star