The 2025 tax season is here, and it’s more than just a yearly routine; it’s a chance to improve your financial health. If you prepare smartly and follow the rules, your tax returns can help you reduce the amount you owe or even give you money back.
This year, the South African Revenue Service (SARS) has made the process easier with auto-assessments. But to get the most out of your tax returns, you still need to double-check your information and take advantage of legal tax benefits.
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1. Understand Auto-Assessment and Your Responsibilities
SARS started sending out auto-assessments on 7 July 2025, and most non-provisional taxpayers have until 20 October 2025 to review or submit their tax returns.
If you received an auto-assessment SMS, you can:
- Accept it if all the details are correct
- Or reject it and file manually if some income is missing
Always log into your SARS eFiling account or use the SARS MobiApp to check your tax profile. Auto-assessments may not include side hustles, rental income, freelance work, or cryptocurrency earnings. If these are not reported, you risk penalties.
✅ Tip: Update your email, phone number, and banking details on eFiling to avoid delays with your refund.
2. Declare All Income Honestly
To stay compliant and benefit from your tax returns, you must declare all sources of income, including:
- Full-time or part-time jobs
- Freelance or contract work
- Rental properties
- Investment income or dividends
- Cryptocurrency and capital gains
Even if SARS doesn’t pick it up in your auto-assessment, you are still responsible for reporting it.
3. Claim the Right Deductions
You can reduce how much tax you owe by claiming legal tax deductions. This helps maximise your tax returns.
Here are deductions you might qualify for:
- Medical aid and medical expenses not covered by your plan
- Retirement annuity contributions (up to 27.5% of income, capped at R350,000/year)
- Donations to Section 18A charities
- Home office expenses (if you work from home full time)
- Business travel expenses (with a valid logbook)
- Tax-free savings account contributions (up to R36,000/year)
These deductions are legal and approved by SARS, and they directly reduce your taxable income.
4. Keep Records for Five Years
SARS may ask you to prove the information in your tax returns, even years later. That’s why it’s important to:
- Save your IRP5s, medical receipts, RA certificates, and bank statements.
- Keep a mileage log if you claim travel expenses.
- File these digitally or in a safe place
You must keep supporting documents for at least five years, in case SARS audits you.
5. If You Owe SARS, Take Action
If your tax return shows that you owe money to SARS:
- Don’t ignore it.
- You can apply for a payment plan.
- Or request a suspension of payment while you file a dispute
Communicate with SARS through eFiling or the MobiApp to avoid interest or legal action.
6. Watch Out for Tax Scams
During tax season, scammers may send fake emails or SMS messages claiming to be SARS. They may promise refunds or demand payments with suspicious links.
To stay safe:
- Don’t click on strange links.
- Only log into SARS eFiling
- Report scams to phishing@sars.gov.za
7. Use Your Tax Refund Wisely
If your tax returns result in a refund, use it smartly:
- Pay off debts with high interest (like credit cards).
- Add to your emergency savings or retirement annuity
- Invest in home improvements or your children’s education
- Donate to a registered charity and claim it next year
Using your refund wisely helps build long-term financial stability.
Final Thoughts
Filing your 2025 tax returns doesn’t have to be stressful. With auto-assessments, legal deductions, and smart planning, you can take control of your finances and get real value from your return.
Just remember:
- Check your auto-assessment
- Declare all income
- Claim the right deductions
- Stay alert to scams
- Use any refund to improve your financial future.
For more help, visit the SARS website or speak to a registered tax practitioner. Your tax returns are not just paperwork; they’re a chance to take charge of your money.