INDIVIDUAL TAX RETURNS
When does the tax filing season typically open each year?
The official filing dates are announced annually by South African Revenue Service (SARS), however, the South African Tax filing season typically opens in July every year, for all individual taxpayers.
The dates for the 2026 Filing Season have not yet been published and will be available once officially released.
What documents do I typically need to prepare a standard tax return?
You will typically need the following documents for your tax returns:
- IRP5 employee tax certificate;
- IT3(b) and IT3(c) tax certificates from financial institutions in respect of interest, dividends, and capital gains;
- IT3(f) Retirement annuity fund contribution tax certificate;
- IT3(d) Donations certificate (if contributions made to approved PBO – Public Benefit Organisation);
- Medical aid certificate of contributions; and
- Travel logbook (related to travel allowances received).
Further to the above, any additional income received by the taxpayer during the relevant tax period must be declared on the return.
What happens if I am auto assessed by SARS?
- SARS will send an email or SMS notifying the taxpayer that they are auto-assessed. The taxpayer can also log onto their SARS e-Filing profile / SARS Mobi app to check if they have been auto-assessed.
- The taxpayer will need to check the auto/estimate assessment against IRP5 certificate, medical and RA certificates to confirm if the assessment is accurate. Should the taxpayer be in agreement, the estimate assessment can be regarded as final, and no further action will be required.
- If the taxpayer earned any additional taxable income during the relevant tax year that was not included in the estimated assessment—such as rental income, income from a trade, or any other form of taxable earnings—they have the right to request a correction to the assessment in order to accurately declare their income.
- Should the taxpayer disagree with the estimated assessment issued by SARS for any reason, they are entitled to submit a request for correction to ensure the return reflects their actual tax standing for the tax period.
What are the odds that SARS suddenly flags all the old tax returns as outstanding, when previously they never reflected as outstanding?
- The odds are high for tax returns to be flagged by SARS for periods where taxpayers are required to submit a return and a return was not submitted, i.e., periods where the taxpayer did not meet all the requirements of the threshold.
What happens if my tax return is selected for verification/audit?
- There is a high likelihood that SARS may flag tax returns for review in instances where a taxpayer was required to submit a return but failed to do so—particularly for periods during which the taxpayer did not meet all the applicable submission threshold requirements.
- SARS gives taxpayers 21 working days from the issue date of the respective verification letter to honour the verification/audit request. In honouring this request, you should evaluate what documentation is required for the finalisation of the verification process. The letter will serve as a guide as to what supporting documentation is needed.
- Once verification is complete, SARS will issue a completion letter confirming whether they agree with the submitted tax return or alternatively if any changes were made to the assessment.
How long does SARS take to process a refund?
- SARS aims to issue refunds within 72 hours, provided your banking details are valid and up to date on your registered details.
- Your tax refund may be placed on hold if your assessment is selected for verification, if there are outstanding administrative penalties, or if your banking details are invalid.
TAX RETURNS FOR EXPATRIATES
How do I know if I am a resident or non-resident when submitting my returns?
- An expatriate’s status is determined in accordance with the provisions of the Income Tax Act. This determination is based on two primary tests: the ‘ordinarily resident’ test and the ‘physical presence’ test.
- A taxpayer’s circumstances and historical information must be thoroughly evaluated, preferably by a qualified tax professional, against the applicable residency criteria to accurately determine their tax residency status. This determination is essential for establishing the appropriate method of submitting tax returns to SARS. It is imperative that this assessment be reviewed on an annual basis to ensure ongoing compliance with tax regulations
TAX RETURNS FOR RESIDENTS
As a South African resident working abroad, do I have to pay taxes in South Africa with regards to foreign income?
- South African tax residents are taxed on their worldwide income and as such, foreign income earned (including fringe benefits and bonuses) by a South African tax resident must be declared to SARS for tax purposes. We offer a potential expatriate tax calculation service to assist SA tax residents to determine their potential tax liability.
If I’m working for a South African company, do I qualify for foreign income exemption when rendering my services outside the Republic?
Yes, South African tax residents working for South African employers may qualify for a foreign income exemption if they render their services outside the Republic, subject to certain requirements being met. Please note that the Section 10(1)(o)(ii) exemption is now capped at R1.25 million.
If I’m below the R1.25 million threshold, do I still need to declare my foreign income even though it is fully exempt?
Yes, to benefit from the exemption you are still obligated to declare your foreign employment income and thereafter claim the exemption accordingly.
If I do not qualify for s10(1)(o)(ii) exemption and I have already paid taxes on that income abroad, will I have to pay taxes twice?
- Yes, South African tax residents employed by South African employers may qualify for a foreign income exemption provided they are required to render their services outside the Republic. There are certain requirements that need to be met in order to qualify. Please note that the exemption under Section 10(1)(o)(ii) is now limited to a maximum of R1.25 million.
- Yes, to benefit from the exemption, you are still required to declare your foreign employment income and subsequently, formally claim the exemption on your tax return.
- Yes, even if you have paid taxes abroad on income earned, you are still required to declare this income to SARS, where it will be subject to South African tax. It is important to note that taxpayers facing double taxation may benefit from South Africa’s tax treaties designed to prevent such occurrences. To apply these relief measures, the relevant information must be declared and submitted to SARS accordingly.
TAX RETURNS FOR NON-RESIDENTS
Must I have earned South African sourced income to submit a tax return?
- Non-residents taxpayers with active income tax numbers will still be required to submit an annual tax return. Where they have not earned South African-sourced income zero return must be filed. The obligation to submit a return will fall away when you have no South African-sourced income and have deregistered your income tax number. (You may only deregister once you dispose of all your assets in South Africa, such as bank accounts, properties, trusts, shares, and policies. Additionally, your profile must be fully compliant).
How do I eliminate double taxation on income earned in South Africa?
Where there is a double taxation agreement signed between South Africa and the State in which you are a tax resident, the double taxation agreement will determine which country has taxing rights in respect of the relevant income earned. Where both South Africa and the host country have taxing rights, you will need to claim tax relief from that State in respect of the taxes already paid in South Africa.
I’m a non-resident who ceased working in South Africa and now earn a pension and annuity income from a South African pension fund. Where do I pay the taxes relating to the income I’m receiving?
The double taxation agreement between South Africa and the State in which you are a tax resident will ascertain which country has taxing rights in respect of such income. Where the double taxation agreement is silent on the matter or there is no double taxation agreement between the two countries, you would need to claim foreign tax credits in respect of the taxes already paid in South Africa in the State in which you are a tax resident.
Do I need a South African bank account when claiming my refunds?
- SARS will only verify and process refunds to a valid South African bank account. If you wish to have the funds transferred to a foreign bank account, you will be required to submit a foreign refund application
CRYPTO TAX RETURNS
When do I pay tax on my crypto?
You are liable for tax when you:
- Sell crypto for fiat currency (e.g., ZAR, USD).
- Swap one cryptocurrency for another.
- Receive crypto as rewards, airdrops, interest, or other income (including staking or mining).
At what rate am I going to pay tax?
The tax rate applicable to your crypto income depends on whether you are classified as a trader or an investor:
- Trader: If you are actively trading crypto, your profits are treated as revenue and will be included in your taxable income. You will be taxed according to your personal income tax bracket (up to 45%).
- Investor: If your crypto is held for long-term investment, gains are considered capital in nature. You will pay Capital Gains Tax (CGT) on profits, with an effective tax rate of up to 18% (depending on your marginal tax rate and applicable exclusions).
Can I send crypto from South Africa to another country and vice versa?
Yes, cross-border transfer of crypto is permitted.
However, South African individuals are subject to a Single Discretionary Allowance (SDA) of up to R1 million per calendar year.
If you exceed this limit, pre-approval via a tax clearance certificate is required. Always seek professional advice before making large offshore transfers.
What happens if my crypto got stolen?
We can claim the cost of that specific crypto as a deduction if adequate proof has been obtained for the stolen crypto.