by Reatlegile Ratlagane
- Avoid penalties and maximise your refund with these smart tax filing guidelines
As the 2025 tax season kicked off from 7 July to 20 October, every South African earning a salary or running a business is called to file their tax return. Tax is a compulsory financial charge governed by the South African Revenue Service (SARS), designed to fund essential public services such as schools, hospitals and infrastructure. Whether you’re a first-time filer or a seasoned taxpayer, knowing what to do - and what to avoid - can save you time, money and unnecessary stress.
Often viewed as a complicated and difficult process, tax filing can be overwhelming for many. Depending on different forms of income and financial expenses, individuals pay various types of taxes such as Income tax, VAT and Capital gains tax to name a few.
Lindelani Mbambale-Mathobo, a Chartered Accountant, SARS Tax Practitioner and tax lecturer at the Department of Accounting at the Tshwane University of Technology’s Faculty of Economics and Finance, breaks down the complexities of tax filing for TUT staff and students. She addressed a common misconception that individuals earning below the tax threshold are exempt from filing, clarifying that personal circumstances may still require them to submit a return. Mbambale-Mathobo emphasised that filing is not only essential for claiming potential refunds but also crucial for staying compliant with SARS legislation and avoiding penalties.
“There are many misconceptions about tax, such as the belief that SARS will not notice if you leave out a source of income or that only businesses get audited. This is not true. In fact, SARS uses third-party data and will most likely detect omissions. Another common mistake is assuming that if you receive a refund, there is no need to check your return. Mistakes can happen and it is every individual’s responsibility to ensure that all information is accurately captured,” she explains.
Mbambale-Mathobo also highlighted recently added tax laws that individuals and business might have missed:
- On 1 September 2024, the Two-Pot Retirement System was introduced, splitting retirement funds and affecting how and when you can access your retirement savings.
- All cryptocurrency transactions are now taxable and must be declared to SARS.
- SARS has tightened regulations on home office deductions and it is now stricter about who can claim and what qualifies as a deduction.
- Although, SARS has broadened its auto-assessment system. It remains vital to review your assessment for accuracy, especially if you have multiple income sources or deductions.
“Individuals and businesses should gather all relevant documents before filing, including IRP5/IT3(a) certificates from employers, interest income certificates from banks, medical aid tax certificates, retirement annuity contribution certificates and travel logbooks,” she said.
Mbambale-Mathobo advised individuals not to skip tax filing as it may result in serious consequences, including penalties, withheld refunds and even SARS recovering outstanding amounts through third parties.
She cautioned against filing at the last minute, copying information from previous returns, ignoring communication from SARS, misrepresenting your income, or using someone else’s banking details.