South Africa’s 2025 tax season has officially begun, and the SARS eFiling system is already experiencing slowdowns due to high traffic. As many taxpayers rush to submit their returns, understanding the common pitfalls to avoid this tax season and tips for accurate income tax assessments can help you avoid costly mistakes, penalties, and delays.
This year’s tax filing period covers income earned between 1 March 2024 and 28 February 2025. Whether you’re a first-time filer or a seasoned taxpayer, staying informed about deadlines, requirements, and common errors is crucial.
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Which Type of Taxpayer Are You?
Johan Werth, financial adviser at Consult by Momentum, categorises taxpayers into three groups:
- The Proactive: files early and stays organised.
- The Procrastinator: waits until the last minute.
- The Panicker: avoids or delays filing, hoping it will resolve itself.
Recognising your tendencies will help you apply the common pitfalls to avoid this tax season: tips for accurate income tax assessments in a way that suits you best.
Key Dates to Remember
SARS will auto-assess some taxpayers from 7 to 20 July 2025. Non-provisional taxpayers not auto-assessed must file between 21 July and 20 October 2025, while provisional taxpayers have until 19 January 2026 to submit their returns.
One common misconception is that individuals earning under R500,000 don’t need to file. This is not always true. Werth warns that assuming Sars will handle everything can lead to penalties or missed refunds. Always check your status on SARS eFiling or consult a registered tax practitioner.
Who Needs to File?
You are required to file an income tax return if you:
- Are a South African resident or non-resident earning income locally.
- Received capital gains, foreign income, or dividends not subject to automatic withholding tax.
- Have multiple sources of income, such as salary and rental income.
- Earned more than R95,750 if under 65 years old (2025 tax year threshold).
- Wish to claim deductions for medical expenses, retirement annuities, or travel allowances.
- Are provisional taxpayer freelancers, sole proprietors, or rental income earners.
Avoid These Common Mistakes When Filing
Werth highlights the top errors taxpayers make during tax season:
1. Missing the Deadline
Late submissions attract administrative penalties starting at R250 per month, escalating to as much as R16,000 per month for repeat offenders. These fines can quickly add up, so it’s important to file on time to avoid unnecessary costs and potential blocking of services like home loan applications or emigration clearance.
2. Submitting Incomplete or Incorrect Information
Using outdated details, missing certificates (e.g., IRP5s), or incorrect source codes can delay processing and refunds. Use Sars’ guided eFiling tools to ensure your submission is accurate and complete.
3. Accepting Auto-Assessments Without Reviewing Them
SARS’ auto-assessments are convenient but may not include all deductions you qualify for, such as medical expenses or retirement contributions. One of the most important common pitfalls to avoid this tax season, tips for accurate income tax assessments, is neglecting to review and, if needed, manually adjust your assessment.
4. Not Claiming Eligible Deductions
You can reduce your tax liability by claiming:
- Out-of-pocket medical costs not covered by medical aid.
- Retirement annuity contributions.
- Travel costs related to work.
- Home office expenses (if applicable).
Only claim what you can support with valid proof, as SARS may audit these claims.
5. Poor Document Management
Keep all your tax-related documents (IRP5s, medical certificates, receipts) digitally stored and organised for at least five years, as SARS may request these during an audit.
What Happens If You Don’t File?
Failing to file can lead to hefty penalties, interest charges on unpaid tax, and potential legal action. Administrative penalties start at R250 per month and escalate, sometimes reaching R16,000 monthly for serious offenders. Non-compliance can also result in blocked access to essential financial services like home loans or emigration clearance.
Even if you expect a refund or earn below the tax threshold, it’s a criminal offence to ignore your filing obligations. Always confirm your status on eFiling or with a tax professional.
Provisional Tax and What You Need to Know
Provisional taxpayers, typically freelancers, consultants, or anyone earning income not subject to Pay-As-You-Earn (PAYE), must file two IRP6 returns annually, usually by the end of August and the end of February. These payments are estimates based on expected taxable income and help avoid large lump sums at year-end.
If you earn more than R30,000 from non-PAYE income, you likely qualify as a provisional taxpayer and must file accordingly.
Refund Timelines
For auto-assessed taxpayers, SARS usually processes refunds within 72 hours, provided your banking details are correct and there are no complications. Manually filed returns may take longer to process.
Tips for a Smoother Tax Season
- Store all documents safely, preferably digitally.
- Only claim deductions you can prove.
- Review your auto-assessment carefully.
- Seek professional advice if your tax situation is complex.
- File early to avoid technical delays SARS has already reported high e-filing traffic.
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Take Control This Tax Season
Filing your return doesn’t have to be overwhelming. By knowing the common pitfalls to avoid this tax season: tips for accurate income tax assessments, you can protect yourself from penalties, claim all the deductions you deserve, and get your tax affairs in order. Whether you’re proactive or tend to procrastinate, early action and good organisation are your best tools for a stress-free tax season.
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