Questions and Answers

Frequently Asked Questions

Here are a few of the questions we get the most. If you don’t see what’s on your mind, reach out to us any time on phone, chat, or email.

Tax Services

Answer: Yes
  • SA residents: Register as soon as you have an ID and start earning any income (formal or informal).
  • Non‑residents: Register if you earn South African‑source income (e.g., SA employment, rental in SA, SA business, disposal of SA immovable property).
  • Automatic registration: Many employees are auto‑registered via employer submissions, but it’s still your responsibility to be registered and compliant.

Answer:
Only your SA ID or a valid passport. It does not need to be certified.
Extras (proof of address, bank letter, power of attorney) are only needed in specific processes (e.g., bank verification, if someone acts on your behalf) not for initial registration.

Answer:
Rule of thumb: File a return, even if you think you’re below the threshold. It avoids the “if/buts” later and keeps your record clean. Common triggers:
  • Multiple income sources (salary + rental/side‑hustle/foreign income)
  • Capital gains events (e.g., sale of property/shares/crypto)
  • Claiming deductions (RA, medical, home‑office/commission, s11(a) business expenses)
  • Provisional tax, or SARS asks you to file
  • Non‑resident with SA‑source income

Answer:

SARS publishes dates each year. Typical pattern: July–October for non‑provisional taxpayers, and into January for provisional taxpayers. Update this section annually with the exact published dates.

Answer:
There is no separate “accept” step. If the auto‑assessment is correct, you can leave it as is or send it to us for review. If it’s wrong or incomplete, submit a corrected return by filing your ITR12.
Answer:
Keep it simple and accurate:
  • Retirement annuity (RA) contributions (subject to limits)
  • Medical scheme fees & qualifying out‑of‑pocket expenses (via MTC rules)
  • Home‑office & travel: Only if you meet the tests (commission‑earner vs salary‑earner rules differ; keep a logbook for travel)
  • Donations to PBOs with valid s18A receipts
  • Wear‑and‑tear on qualifying assets used to earn income
  • Expenses incurred in the production of trading income (business, rental, commission (50% rule), or independent contracting) – This is subject to Section 11(a) and Section 23(g) of the Income Tax Act.

Answer:
Administrative penalties can range from R250 to R16,000 per month depending on income level and the number of months outstanding.

Answer: Once verification is complete, refunds are usually processed within 7–21 business days. Delays can occur if there’s an audit or bank verification pending.
Answer:
  • Audit – 21 working days
  • Notice of Objection – 60 working days
  • Notice of Appeal – 90 working days
  • Manual Intervention – 90 working days
Answer:
Break it into steps:
  • Declare: SA tax residents declare worldwide income.
    • a. Note that foreign income has multiple different tax structures and mitigation options.
  • Exemption (s10(1)(o)(ii)): Possible for employment income if you meet certain requirements; apportionment often applies.
  • Foreign tax credits (s6quat): If you were taxed offshore, you may claim credits—keep proof of tax paid and exchange rates.
  • Documentation: contracts, payslips, statements, travel schedules, tax certificates. Avoid mixing the exemption and the general rule—first declare, then apply the correct relief method.
Answer:
  • Proceeds: What you received (or deemed to receive) on disposal.
  • Base cost: Purchase price + directly related acquisition/improvement/disposal costs.
  • Capital gain/loss = Proceeds − Base cost.
  • Inclusion: A portion of the net gain is included in taxable income (individuals: inclusion rate currently 40%).
  • Annual exclusion for individuals (natural persons) applies each year.
  • Losses: Capital losses can only offset capital gains (not salary/business income). Keep records of dates, costs, and supporting documents.

Answer:

Yes. If you earn more than the tax threshold for the year (for 2025, it’s R95,750 if you’re under 65, higher if you’re older), you must register with SARS. Most people who work formally are automatically registered when they get their first job.

Answer:

  • SARS may issue penalties and interest for late or non-submission.
  • You could be charged administrative penalties (monthly fines).
  • Your refunds may be blocked until you’re compliant.
  • SARS could take legal action if large amounts are unpaid.

Answer:

Generally, no. Small personal gifts aren’t taxable for the recipient. But:
If someone gives you more than R100,000 in a year, the giver (not you) may have to pay donations tax.
Regular payments that look like income (e.g., “salary from uncle”) could raise SARS questions.

Answer:

If you earn commission (more than 50% of income) or run a business, you can deduct business-related expenses, e.g.:

  • Travel (with a logbook)
  • Home office (if you have a dedicated workspace)
  • Phone/internet used for work
  • Stationery, equipment, tools, advertising, etc.
    The golden rule: expenses must be necessary, directly related to earning income, and supported by proof.

Answer:

Common reasons include:

  • SARS still verifying your bank details.
  • Your return was selected for audit/verification.
  • Outstanding returns from previous years.
  • Admin penalties not yet settled.
Answer: Don’t ignore it—SARS adds interest and penalties. Options:
  • Arrange a payment plan (instalments) with SARS.
  • Apply for a compromise if your debt is unaffordable.
  • Always contact SARS early to avoid legal action.
Answer:
  • IRP5: Employer tax certificate that shows remuneration and PAYE withheld (with SARS income codes). It does not list your personal deductions; it reflects employer‑reported amounts (e.g., employer RA, certain allowances, fringe benefits).
  • IT3(a): Similar certificate where no PAYE was deducted (e.g., some income where tax wasn’t withheld).
Answer:
If an IRP5 exists, SARS also has it from the employer submission. Request it from your employer/payroll. Best practice: wait to file until you have the correct certificate—don’t guess figures. If your employer fails to provide it, escalate internally and keep written proof of your requests.
Answer:
Each employer withholds PAYE as if they’re your only employer. SARS adds all income together → your total tax bracket may be higher → shortfall. This needs tax planning (e.g., voluntary extra PAYE, or provisional tax). It’s not something the second employer can “fix” automatically.
Answer:
  • SARS receives info directly from employers, medical aids, retirement funds, banks, and investment companies.
  • This info is then automatically added to your return (auto-assessment or on eFiling).
  • You still need to check it’s correct—mistakes do happen.
Answer: Yes. You can:
  1. Edit your return with the correct figures and supporting documents.
  2. Submit your correction to SARS.
  3. Contact your employer/medical aid/bank to resubmit the corrected certificate to SARS.
SARS often requests proof if the data you file differs from what they received from third parties.

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