How to File Taxes in South Africa (SARS eFiling Basics)
1.
Register for Tax
Who must register:
Anyone earning above the tax threshold (approximately R95 750 for those under 65 in 2025; higher thresholds apply for older taxpayers) must register.
You may also need to register if you earn income from sources like rental properties or freelance work.
How to register: Employers typically register employees automatically. Otherwise, you can register yourself via SARS eFiling or at a SARS branch.
Documents needed:
South African ID (or passport for foreign nationals), proof of residence (e.g., a recent utility bill or bank statement), bank account confirmation (a stamped letter or statement), and employer details (if applicable).
2.
Create a SARS eFiling Profile
Register on the SARS eFiling website as an Individual Taxpayer.
You will need your ID number, existing tax reference number (if any), and contact details (email and cell phone).
Set up a secure password. This portal is your hub for annual returns, tracking refunds, and making payments.
Gather Supporting Documents
IRP5/IT3(a): Issued by your employer, showing earnings, PAYE, UIF, and deductions.
Medical Aid Tax Certificate: Details of contributions and claims.
Retirement Annuity Certificate: Contributions that may be deductible.
Investment Income Certificates: IT3(b) for interest, IT3(c) for dividends, capital gains, and unit trusts.
S18A Certificate: For donations to approved public benefit organisations.
Travel Logbook: Required if claiming business-related car mileage.
Other Income Proof: Documentation for rental income, freelance work, or foreign earnings.
Bank Account Confirmation: To ensure any refunds are paid to the correct account.
3.
Log In During Tax Season
Tax season typically runs from July to October each year (SARS announces exact dates).
Log in to your eFiling account and check if SARS has issued an auto-assessment (a pre-filled return).
Auto-Assessment or Manual Filing
Auto-assessment: If data is accurate, simply accept and submit, after verifying against your own records.
Manual filing (ITR12): If anything is missing or incorrect, complete the form manually. Include additional income sources or deductions not preloaded.
Submit and Receive Outcome
After submission, SARS processes the return.
If you’re due a refund, SARS pays it—typically within 2–7 working days, assuming your banking information is correct.
If you owe tax, pay directly via eFiling (EFT, card, or bank transfer).
If neither applies, your assessment is “neutral.”
You can download your Notice of Assessment (ITA34) to see how the tax amount was calculated.
Keep Records
SARS can audit up to 5 years back. Keep digital and physical copies of all supporting documentation—certificates, invoices, receipts, logs, etc.
Costs and Penalties
eFiling itself is free.
Using a tax practitioner may cost between R500 and R2 500 depending on the complexity.
Late or non-filing may incur SARS administrative penalties, starting at approximately R250 per month.
4.
South African Individual Income Tax Rates
R0 – R237 100: 18% of taxable income
R237 101 – R370 500: R42 678 + 26% on amount above R237 100
R370 501 – R512 800: R77 362 + 31% on amount above R370 500
R512 801 – R673 000: R121 475 + 36% on amount above R512 800
R673 001 – R857 900: R179 147 + 39% on amount above R673 000
R857 901 – R1 817 000: R251 258 + 41% on amount above R857 900
R1 817 001 and above: R644 489 + 45% on amount above R1 817 000