The 2025 tax season is officially upon us. You can either be excited at the prospect of getting a tax refund from the South African Revenue Services (SARS) – who doesn’t love an unexpected cash injection? – or be nervous AF for having ghosted the taxman in the past (no judgement whatsoever!). In South Africa, just like with most countries around the world, tax filing is mandatory. Think of it as “your annual commitment to Team South Africa!” as one social media meme once described it. Whether you dread or don’t mind the admin that comes with filing for taxes, these expert tips from Itumeleng Bopape, Managing Director at Greater Heights Financial Solutions, will make the process bearable.
First things first, she says: “Tax filing is a legal responsibility in South Africa. It’s a nice-to-do for the country because we obviously need more taxes to be collected so the country can run efficiently. Not complying with tax regulations can create problems for you further down the line when you, for instance, are buying property. Your chances of being granted a home loan when you’re not tax compliant are zero!” Wooooaaaaaah, okay!
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What Is The Difference Between A Provisional And Non-provisional Taxpayer?
A provisional taxpayer is someone who earns income that’s not subject to Pay-As-You-Earn (PAYE). This could be someone who is self-employed or those individuals who earn extra income other than a salary. This usually includes freelancing, running a side hustle, rental income, investment income with interest or dividends that are above R30 000. A non-provisional taxpayer, on the other hand, only earns one income from one employer.
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What Changes Has SARS Introduced In The 2025 Tax Season?
“Not much has changed, it’s still pretty much the same process. In 2024, SARS started doing auto assessments. What they do is check all the third-party tax certificates (also known as IRP5s) provided in a taxpayer’s name, ID number and tax number by an employer, medical aid, retirement annuity, investment, etc. and conduct an automatic assessment based on that information,” explains Bopape. You then have the option of accepting the assessment as it is or lodging a complaint.
“Very important to note is that the taxable salary threshold is R95 750 annually or R7 979 monthly,” explains Bopape, adding that SARS has announced that they will be conducting auto assessments on provisional taxpayers. “It’ll be tricky because they won’t know what the provisional taxpayers’ expenditure was, etc.”
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How Will SARS Catch Me If I Don’t Declare My (Additional) Income?
“Freelancers, in particular, often mistakenly believe that they don’t need to declare all income. SARS has invested heavily in technology – data analysis and reporting systems – to actively seek out non-compliant taxpayers, even for previous years. Please be warned that non-declaration can lead to penalties and interest charges,” shares Bopape.
Red flags are raised in cases where your lifestyle or assets don’t match your declared income. SARS receives data from institutions such as banks, employers, investment companies, deeds office, motor vehicle registration authorities, medical aid providers to question the inconsistencies between your lifestyle and declared income. In such cases, SARS has the right to carry out a lifestyle audit and ask you to explain the contradictions. SARS also uses platforms such as social media to identify discrepancies or unreported income.
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How Should I Choose A Tax Practitioner?
An important red flag to look out for, according to Bopape, is a tax practitioner who promises you an unusually high SARS refund before taking a look at your tax certificates and doing a basic calculation. “Always use registered tax practitioners and be sure to verify their credentials on the SARS website,” advises Bopape.
South African law requires all tax practitioners to be registered with either SARS or a recognised controlling body/institution such as South African Institute of Chartered Accountants (SAICA), South African Institute of Professional Accountants (SAIPA), South African Institute of Taxation (SAIT) and any other reputable bodies. Always ask for their SARS Practitioner Number and verify it here – and also check if they have a relevant qualification. And lastly, choose a practitioner who understands your tax needs, particularly if yours isn’t a straightforward tax sitch i.e. you have multiple investments or multiple sources of income, have a side hustle or run a small business.
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Tips To Make Tax Filing Simpler
And remember to come back and thank us when that tax refund hits your bank balance.
- Utilise digital platforms. Taxpayers should use the SARS e-filing platform for submissions. It’s efficient and saves time. SARS is also on a mission to discourage taxpayers to queue at their offices for help.
- Update details regularly. Ensure all personal information and bank details are updated to avoid delays should you be due for a refund from SARS.
- Never get rid of tax-related docs. Keep all supporting documents ready for potential audits or reviews.
- Be on high alert. Cyber criminals are usually hard at work during tax season, with their scams being smarter and more convincing. Immediate red flag – SARS will never send their banking details. An immediate red flag is when you receive communication encouraging you to deposit money into a SARS bank account.
- Always honour the submission deadline. Submit tax returns on time to avoid penalties, with deadlines set for October 20, 2025 for non-provisional taxpayers, and January 19, 2026 for provisional taxpayers.
