You know it’s SARS tax season when even the memes start quoting Benjamin Franklin. But this year, as we approach the 2025 tax year, a new wave of attention is swirling; not around humour, but around SARS’s use of AI-powered enforcement tools to close tax gaps. In a country where only around 12% of the population contributes to personal income tax and nearly half rely on social grants, the pressure to collect is intensifying.
Still, panic is not a strategy, says Roxanna Naidoo, Head of Global Strategy at Latita Africa. Instead of being driven by fear, she suggests taxpayers see this period as a moment of opportunity. “Whether you have an accountant, a tax practitioner, or you’re filing solo, tax season can actually work in your favour if you understand how to use the system to your benefit,” she says.
Take stock of your finances
Naidoo notes a rising trend of taxpayers receiving final letters of demand, verification requests, or document follow-ups from SARS. “It’s true that scrutiny is increasing, but don’t let that scare you,” she advises. “Use the SARS tax season as an annual financial check-in. You might be surprised to find SARS owes you money.” Reviewing your finances holistically not only ensures compliance but also opens up room for savings or refunds you may have overlooked.
Start with the basics
To stay ahead, start by making sure your personal details are correct on SARS’ eFiling system. If your contact or banking information is outdated, you could miss important notices or refunds. “Keeping these details updated ensures seamless communication with SARS and allows you to access tools like the new auto-assessment and express filing,” explains Naidoo. This is particularly important for both provisional taxpayers and non-provisional taxpayers as they prepare for the year of assessment.
Don’t trust, verify
While automation may sound convenient, Naidoo urges taxpayers not to blindly accept their SARS auto-assessment or estimated assessment. “SARS may not accurately account for rental income, side hustles or overseas earnings,” she warns. “Even if the error stems from missing third-party data, you’re still on the hook.” If you spot discrepancies between the original assessment and your records, click on ‘request amendment’ and upload the correct figures manually via eFiling.
Reduce what you owe legally
The good news is there are several ways to reduce your tax liability during tax season. “As long as you declare all income, whether from a salary, freelance work, or even cryptocurrency—you’re within your rights to apply legal deductions,” says Naidoo. These include medical expenses, retirement annuities, donations (with Section 18A certificates), tax-free savings accounts, capital gains tax exemptions, home office expenses, and even business-related travel costs.
“These aren’t loopholes; they’re mechanisms designed to support compliance and responsible saving,” she adds. “It’s also worth checking the latest tax tables to understand your obligations fully.”
Documentation is everything
Filing may only come once a year, but the paperwork sticks around. SARS can request historical documentation at any time within five years of filing. “Keep your receipts, bank statements, and certificates—including your IT3(a) certificate, even if they’re just digital scans,” says Naidoo. “It doesn’t matter where or how you store them, as long as they’re accessible if SARS comes asking.”
Dealing with tax debt
If you find yourself owing SARS money, don’t fall into the trap of panic payments that strain your finances. “There are lawful remedies available,” Naidoo explains. These include negotiating a payment plan, requesting a suspension of payment, or even disputing the amount through SARS’s resolution channels. In some cases, mediation may be the most efficient and affordable route to settle a dispute.
She adds, “Being in tax debt doesn’t mean you’re out of options. The law actually allows space for negotiation and resolution; you just need to be proactive. This includes exploring options like Section 6quat for foreign tax credits if you’re an RSA tax resident with international income.”
Make the SARS tax season work for you
Ultimately, the SARS tax season is what you make of it. It can be a source of stress or a strategic tool. “If you’re smart about it, you can shift your view of filing from a compliance burden into a financial opportunity,” says Naidoo. From reducing liability to unlocking refunds, it’s all about being informed, accurate, and proactive.
Remember these key dates for the 2025 tax year:
- 31 March: End of the tax year
- 7 July: Opening of filing season for non-provisional taxpayers
- 19 September: Deadline for provisional tax returns
By staying on top of these dates and understanding your obligations, whether you’re dealing with interest exemptions, capital gains tax, or need to submit a tax directive application, you can navigate the SARS tax season with confidence and potentially even benefit from the process.
