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The Citizen
22-07-2025
- Business
- The Citizen
Tax season: Here is why you need to prioritise filing for returns
If taxpayers do not claim what they are entitled to, they are leaving money behind. When most people think of tax season, they often get a headache because they believe filing returns is a complicated process, and they decide not to file. Well, this is one of those things as an adult you should not pass on, because it will come back to bite you in the future. Taxpayers who decide to turn a blind eye to the tax season will be penalised, and whether they like it or not, the taxman will always have the last laugh, because they will need to pay for those penalties in the end. Ferné Nagy, executive financial advisor at ASI Financial Services, advises taxpayers to view tax season as an opportunity to take control of their financial story. Who should file for tax returns Tax season 2025 is scheduled to run until 20 October for non-provisional taxpayers and until 19 January 2026 for provisional taxpayers. If you are under the age of 65 and earned more than R95 750, you earned commission, freelanced, or side hustle income, sold assets with capital gains of more than R40 000, earned foreign income or held offshore assets worth more than R250 000, or received rental income or investment returns, then you are obligated to file for your tax return. All of these must have taken place between 1 March 2024 and 28 February 2025. Nagy says tax returns enable individuals to recover costs they have already incurred while earning their income. He warns that if taxpayers do not claim what they are entitled to, they are leaving money behind. ALSO READ: Sars makes changes to eFiling for easy use Tax return in the age of AI He adds that the South African Revenue Service (Sars) has made advances in automation through AI-powered auto-assessments. However, he warns taxpayers that auto-assessments are fast but not foolproof. 'Artificial Intelligence (AI) only sees what it's been fed. It cannot interpret your full financial picture like side hustle earnings, unreimbursed business expenses, or retirement top-ups. 'And when the data's incomplete, your return is too. Technology is a powerful enabler, but without human insight, it can cost you.' The catch in turning a blind eye Nagy adds that relying blindly on auto-assessments or ignoring your tax obligations can lead to costly mistakes, such as missed refunds or penalties. 'That is why being registered on eFiling and actively checking your return is so important. It gives you full control to make sure your return is accurate, complete, and truly reflects your financial reality.' Easy process The Citizen ran a test on how quickly it would take to file a return. Because eFiling's Wizard already had most of my information, I just had to answer yes or no to the questions, confirm my details, and enter the amounts I received during the tax season. All in all, it took less than 20 minutes. Within five minutes, my statement of account, detailing how much I will receive from the taxman, was available. However, the call centre is another nightmare. I had made a mistake first, and I needed clarity. I was on hold for 45 minutes, and I was still number 674 on the line when I gave up. If you need to call the call centre, the best thing to do is to request a callback. I'm not sure how long this would take. ALSO READ: Common pitfalls to avoid this tax season Fraud during tax season He adds that as filing becomes more digital, the stakes grow higher. 'Your tax return holds everything from your ID number to your income and banking details.' However, with cybercrime on the rise, thieves are not taking a break. 'According to Interpol, cybercrime costs the economy more than R2.2 billion annually due to the risks of data breaches, identity theft and financial fraud. 'This is where Sars eFiling becomes more than just a filing tool; it becomes your first line of defence.' The platform gives you full control to: Review your assessment Submit corrections Upload documents Track refunds Dispute errors Communicate directly with Sars Digital does not equal safety Nagy says people assume digital equals safe, which is not always the case. 'Security starts with how you use the tools. Cyber awareness is no longer optional; it's part of being financially literate.' Use strong, unique passwords for eFiling. Never click on Sars links in unsolicited emails. Always log in directly. Work with trusted financial professionals who prioritise data protection. 'Even if you were auto-assessed, you are still legally responsible for confirming that it is accurate. Accepting a flawed assessment could result in overpaying, underpaying, or triggering penalties down the line.' NOW READ: Estimated assessments: Sars's new 'cash-cow-grabbing' norm?
IOL News
15-07-2025
- Automotive
- IOL News
Do taxi, Uber, Bolt drivers have to file tax returns? SARS explains
Tax season has officially started in South Africa, and many taxi and e-hailing drivers are unsure whether they need to file tax returns Image: File Tax season has officially commenced in South Africa, leaving many taxi and e-hailing drivers, particularly those working for Uber and Bolt, uncertain about their obligations to file tax returns, including traditional taxi drivers. The tax season began on Monday, July 7 2025, with the South African Revenue Service (SARS) setting clear deadlines for different categories of taxpayers. According to the revenue collector, individual taxpayers must file their returns by October 20, 2025. Provisional taxpayers, meanwhile, have until January 19, 2026, to submit. In response to IOL's inquiries regarding the legal requirements for drivers in this sector to file tax returns, the revenue collector stated that the obligation depends on both the driver's income level and their classification as either an employee or self-employed. "A driver as an employee who earns below the threshold is not required to register for tax. This also applies to the 'owner driver' who is regarded as self-employed; however, they may register to claim deductible expenses relating to their trade," SARS said. The income tax threshold for the 2024/25 financial year is R95,750 for individuals under the age of 65. Anyone earning above that amount is required to register for tax and file a return. SARS explained that ride-hailing drivers are classified differently depending on their relationship to the company or platform they work under. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ "We must separate between an employee of an e-hailing licence holder and 'owner driver'. Employees must be provided with IRP 5 whilst the owner driver is regarded as self-employed, and they must declare their income under the right source code which relates to business activities". The correct source code for business income in the individual tax return (ITR12) is 2534. This code is used by self-employed individuals to declare income from sole proprietorships or other business activities. On the issue of data sharing from companies such as Uber and Bolt, the revenue service did not confirm any specific reporting arrangement. "SARS has access to various sources of data, and this is used for targeted compliance activities". In short, drivers who earn above the threshold of R95,750 are legally required to file tax returns, whether they are employed or self-employed. Those who earn less are not required to register, but owner-drivers may still choose to do so to claim expenses. IOL News Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
13-07-2025
- Business
- IOL News
Brace yourselves, SARS is sliding into your inbox – Tax season starts now!
Get set for tax season Image: Steve Buissinne/ Pixabay This year's tax filing season officially kicks off in July, with auto assessments running from 7 – 20 July 2025. For non-provisional taxpayers who were not auto-assessed, they will be able to submit and file their income tax returns between 21 July – 20 October 2025. Johan Werth, Franchise Principal and Financial Adviser from Consult by Momentum, says when it comes to tax season, there are three types of people: The Proactive - they know what to do and get on it fast The Procrastinator - they know what to do but leave it to the 11th hour The Panicker, who is not really sure what to do and hopes that if they ignore it, it might go away. What is tax filing season and who does it apply to? The tax filing season is the period during which taxpayers must submit their income tax returns to the SARS for the previous tax year (which runs from 1 March to the last day of February of the following year). For the current period, it would refer to 1 March 2024 to 28 February 2025. Individuals who must file an income tax return are: South African residents and non-residents who earned income in South Africa during the tax year. Individuals who: - Have capital gains, foreign income, or receive dividends not subject to automatic withholding tax. - Earn multiple income sources (e.g. salary and rental income). - Earn more than the tax threshold for the year (e.g. over R95,750 for under-65s in the 2025 tax year) - Want to claim deductions (e.g. medical expenses, retirement annuities, travel allowances). - Are provisional taxpayers – usually those who earn income not subject to pay as you earn (PAYE), such as freelancers, sole proprietors, or rental income earners). Common mistakes people make during tax filing season – and how to avoid them: Missing the deadline – Late or missed submissions can lead to penalties. Set reminders and file early – even if you're auto-assessed. Submitting incorrect or incomplete info – Outdated details, missing certificates or source code errors can delay processing. Double-check all data and use SARS eFiling's guided tools. Ignoring your auto-assessment – Don't just accept it blindly: review for missing deductions (like RA or medical aid) and file manually if needed. Not claiming eligible deductions – Medical costs, travel, home office and retirement contributions can reduce your tax – but only if you claim them with proof. Poor document management – Failing to keep receipts, logs or tax certificates puts you at risk in an audit. Store everything digitally for at least 5 years. What happens if you don't file? Failing to file a return when required can come at a high cost – even if you're owed a refund. SARS may impose monthly administrative penalties of up to R16,000, initiate legal action, and block access to essential services like home loans or emigration clearance. It's a criminal offence not to file when you're legally required to. Even if you've earned below the threshold, it's worth checking your status on eFiling or with a tax filing tips to keep you on trackTo make the process smoother and more financially beneficial, you can do the following: - Keep all supporting documents for five years, whether digitally or in the cloud. - Don't overlook key deductions like retirement annuities, home office expenses or out-of-pocket medical costs – but only claim what you're eligible for. - Check your SARS auto-assessment, especially if you have income from multiple sources. - Use a professional such as a financial adviser or tax practitioner if you're struggling with the admin – especially if your situation is more complicated, and includes things like freelancing, working overseas, or capital gains. "Tax season doesn't have to be stressful. But ignoring it, or rushing through it, can lead to bigger problems down the line," Werth says. IOL
IOL News
11-07-2025
- Business
- IOL News
SARS aims for R100bn in tax collection this season
Sars's debt book is currently comprised of all tax types, including personal and corporate income tax, as well as value-added tax and unpaid payroll taxes. Image: Ziphozonke Lushaba/Independent Newspapers HAVING had great success with its specialised tax compliance programmes over the last few years, the SA Revenue Service (Sars) has now called in the cavalry this tax return filing season, through Project AmaBillions, to bolster its tax debt collection capabilities. As the name may indicate, the successful collection of billions in outstanding tax revenue, be it disputed or undisputed tax debts, requires the harmonising of manpower and artificial intelligence, both key items on Sars's agenda. The revenue authority's recently published monthly collection data showed R95 billion in outstanding taxes being collected for the 12-month period ending March 2025. Although an impressive and unprecedented collection windfall, a staggering R422.6bn in undisputed tax debts, remains outstanding as at the end of May 2025. In its pursuit of making non-compliance hard and costly, and chasing South Africa's largest ever tax revenue collection pay-day, Sars has taken the idiom of 'you have to spend money to make money' to a whole other level. Through an additional expenditure allocation of R7.5bn over the medium-term, Sars has onboarded around 1 700 new resources, from matriculants to seasoned tax and compliance experts. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Sounds a lot like Survivor, or better yet, the Hunger Games — only the strong will survive… but no, the intention behind this strategic move is to spend a few billion rand, to collect Amabillions; R20 to R50 billion more, per year, to be precise. With a current debt book totalling more than R530bn, Sars's assertive collection efforts do serve the best interests of the South African economy, even if the taxpayers finding themselves with a civil judgment against their names do not think so. Sars's debt book is currently comprised of all tax types, including personal and corporate income tax, as well as value-added tax and unpaid payroll taxes. This includes taxpayers who wilfully avoid or evade the payment of their taxes, whose amounts are well within their means to settle, and who should not be surprised when Sars empties their bank accounts. But what happens to those individuals, or small businesses, who, due to unforeseen circumstances, simply cannot afford to settle their tax debt to Sars? Whether it be more time needed (monthly instalments), or interest and penalties having snowballed the debt well beyond affordability and some financial reprieve is needed, there are legal tax debt relief mechanisms available. Where a taxpayer is truly experiencing financial hardship, they may qualify for a compromise of tax debt. This is where the taxpayer, who cannot afford to settle the entire amount, approaches Sars and asks for a write-off of interest and penalties which have been attributed to the capital amount owed. The taxpayer then offers to settle (in part or in full) the capital amount owed to Sars, either by lump sum or instalment payments. This proposal, when accepted by Sars, must be reduced to writing. The biggest attraction to a compromise is the write-off of interest and penalties, which is a life jacket afforded to taxpayers who are genuinely experiencing financial hardship but wish to settle their debt and remain compliant moving forward. It is also important to note that a compromise can be applied to any form of tax debt and across all tax types, be it income tax, VAT or PAYE, and regardless of whether it is for an individual, trust or company. There is relief available to all taxpayers who qualify for the compromise of tax debt. Taxpayers who do not satisfy the requirements for a compromise but cannot afford to settle a tax debt in a lump sum payment still have the option to apply and enter into a payment arrangement with Sars, which is known as a deferral of payment. This is where the taxpayer applies to Sars, subject to certain conditions, for a payment agreement in which the taxpayer can settle the outstanding amount over monthly instalment payments over time. This is an attractive option to many taxpayers, as it lessens the burden and reduces a large number that is expected to be settled immediately, to one that is manageable and paid in monthly instalments, which are convenient to the taxpayer and Sars. To protect yourself from Sars, ensuring compliance remains the best strategy. Where you find yourself on the wrong side of Sars, there is a first-mover advantage in seeking the appropriate tax advisory, ensuring the necessary steps are taken to protect both yourself and your bank balance from paying the price for what could be the smallest of mistakes. However, where things do go wrong, Sars must be engaged legally on all fronts. As a rule of thumb, all correspondence received from Sars should be immediately addressed by a qualified tax specialist or tax attorney, which will serve to safeguard taxpayers against Sars implementing collection measures. It is recommended that a request for compromise or payment arrangement be made in a proactive manner, even before a Letter of Final Demand is received, rather than waiting for Sars to come knocking at your door. Through these carefully negotiated solutions, there is the possibility of a fresh start — a fair and balanced outcome that recognises the taxpayer's situation and provides the breathing room necessary to regain financial stability, whilst ensuring tax compliance this 2025 tax return filing season. * Jashwin Baijoo is an associate director and head of strategic engagement and compliance at Tax Consulting SA. ** The views expressed here do not reflect those of the Sunday Independent, IOL, or Independent Media. Get the real story on the go: Follow the Sunday Independent on WhatsApp.
The Citizen
10-07-2025
- Business
- The Citizen
Avoid costly tax mistakes by filing correctly and on time
Avoid costly tax mistakes by filing correctly and on time When it comes to tax season, people usually fall into three categories: The Proactive – prepared, informed, and early to submit; The Procrastinator – informed, but leaves it to the last minute; The Panicker – overwhelmed, unsure what to do, and likely to ignore it altogether That's the opinion of Johan Werth, Franchise Principal and Financial Adviser at Momentum, commenting on this year's tax filing season that opened in July, with auto assessments running from July 7- 20. Non-provisional taxpayers who are not auto-assessed can file between July 21 and October 20. Werth warned: 'Assuming SARS will auto-assess your return—or that you don't need to file at all—can be a costly mistake, especially if you earn below R500,000 per annum.' If you're unsure whether you must file, check the SARS website or speak to a tax practitioner. Who must file a return? You must file a return if you: Earn more than the annual threshold (R95,750 for under-65s in 2025). Earn income from multiple sources (e.g., salary and rental). Receive capital gains, foreign income, or dividends not subject to automatic withholding tax. Want to claim deductions such as medical expenses, retirement annuities, or travel costs. Are a provisional taxpayer (e.g., freelancers, small business owners, or rental income earners). Common tax season mistakes – and how to avoid them: Missing the deadline – Late submissions attract penalties. Set reminders and file as early as possible. Incorrect or incomplete submissions – Double-check all information and documents to avoid delays. Ignoring auto-assessments – Always review your SARS auto-assessment before accepting it. Not claiming deductions – Missed deductions mean lost savings. Keep proof for valid claims. Poor record-keeping – Failing to store tax documents may expose you during an audit. Keep them digitally for at least five years. What if you don't file? Failing to file your return when legally required can result in monthly penalties of up to R16,000, legal action, and restricted access to financial services, including home loans and emigration clearance. It's a criminal offence not to file if you're liable. Tips to stay on track: Store all supporting documents safely (digitally or in the cloud) for five years. Use a registered tax practitioner or financial adviser, especially if you have complex finances. Review your SARS auto-assessment carefully for missing deductions. Don't rush through the process—early, accurate filing is always best. 'Tax season doesn't have to be stressful, but neglecting it can lead to long-term trouble. Start early, stay organised, and seek professional help if needed,' Werth advised. HAVE YOUR SAY: Like our Facebook page, follow us on Twitter and Instagram or email us at [email protected]. Add us on WhatsApp 071 277 1394. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
