Tax season can be confusing. Every year, thousands of South Africans ask the same question:
Do I actually need to submit a tax return?
The answer depends on your personal circumstances, income sources, and whether SARS requires you to submit a return. Understanding your obligations helps you avoid penalties, missed deductions, and delays with SARS.
So what is this “tax return” everyone talks about?
A tax return is a declaration submitted to the South African Revenue Service (SARS) showing your income, deductions, and other relevant information for the tax year.
SARS uses this information to determine whether:
- You have paid the correct amount of tax, or
- You are entitled to a refund, or
- You owe additional tax
A tax return is essentially your opportunity to confirm that SARS has accurate information about your financial year. It is basically a summary of everything you have earned and everything you want to claim.
Who must submit a tax return?
You may need to submit a tax return if any of the following apply.
1. You earn income that requires reporting
This includes:
- Salary income (over R 500 000 in the tax year)
- Business or self‑employment income
- Rental income
- Investment income
- Freelance or side‑hustle income (very important)
- Foreign income
Even if your employer submits an IRP5, SARS may still require a return if your income is complex or includes multiple sources.
2. You have deductions or claims to declare
SARS does allow you deductions from your tax to be claimed.
Yes, it is true. They will “give you money off” your tax bill.
Many taxpayers submit returns because they want SARS to consider allowable deductions, such as:
- Retirement annuity contributions
- Medical scheme contributions
- Certain qualifying medical expenses
- Home office expenses (where applicable)
- Donations to registered PBOs
- Travel claims for commission earners
If you do not submit a return, SARS cannot apply these deductions. This makes sense, if they don’t know you have them to claim, they cannot give it to you.
3. You receive income from more than one source
Multiple income streams often trigger a filing requirement because SARS needs additional information to calculate your tax correctly. ALL income must be declared no matter how small because it does matter. You have to declare the income but you can also claim the expenses eg: on your side hustle.
Examples include:
- Two employers in one year
- Salary plus rental income
- Salary plus freelance income
- Salary plus investment income
- Salary and your “side hustle”
4. You changed jobs during the year
If you worked for more than one employer, SARS may require a return even if your total income is below the usual filing threshold.
5. You received lump‑sum payments
This includes:
- Severance packages
- Retirement fund withdrawals
- Pension or provident fund payouts
These amounts must be verified through a tax return.
But What About the Auto Assessments people are talking about?
Many taxpayers receive a SARS Auto Assessment notification and assume their tax affairs are complete. However, an Auto Assessment should always be reviewed carefully. SARS does make mistakes!
You should check that:
- Your income information is correct
- Your deductions have been included
- Your banking details are correct. This is vital!
- The outcome is accurate
If anything is incorrect, you may need to submit an adjustment or a full tax return.
When you must override an Auto Assessment
You should submit a return if:
- You have additional income not shown in the Auto Assessment
- You have deductions SARS did not include
- You changed jobs and SARS only captured one IRP5
- You contributed to a retirement annuity privately
- You earned foreign income
- You have rental or business income
An Auto Assessment is only accurate when SARS has all your information. An Auto assessment is only correct when you say it is correct.
So Why should I submit a tax return even if I don’t have to?
Even when submission is not strictly required, reviewing your tax position can be beneficial. You may discover that:
- You are due a refund
- SARS needs updated information
- Your deductions were not considered
- Your tax records need correcting
- Your compliance status is outdated
- Your tax number or banking details need verification
Submitting a return can help you maintain accurate tax compliance and avoid future issues.
Common mistakes taxpayers make
1. Waiting until the deadline
Leaving your return until the last minute can create unnecessary stress if documents are missing or SARS requests additional information. the stress is not worth it. If SARS ask for something, you have to start remembering much further back than you would like to
2. Assuming SARS already has everything
Although employers and institutions submit information to SARS, errors can occur. Always check your information before submission.
3. Forgetting additional income
Income from side businesses, investments, rentals, or freelance work may need to be declared. Omitting these can lead to penalties.
4. Ignoring SARS letters or verification requests
SARS may request supporting documents even after submission. Ignoring these can result in assessments being revised or refunds being withheld.
5. Not updating banking details
Incorrect banking details can delay refunds and trigger compliance issues. SARS cannot pay you into a bank account that is incorrect.
What documents do you need for a tax return?
To submit a complete and accurate return, you may need:
- IRP5/IT3(a) certificates
- Medical aid tax certificates
- Retirement annuity contribution certificates
- Investment certificates (IT3(b), IT3(c))
- Rental income and expense records
- Business income and expense records
- Travel logbooks (for commission earners)
- Proof of donations to PBOs
Having these ready makes the process smoother and reduces the risk of SARS queries.
How BC Accounting Services can help
BC Accounting Services assists South Africans with:
- Determining whether you need to submit a tax return
- Reviewing SARS Auto Assessments
- Preparing and submitting accurate tax returns
- Ensuring deductions and claims are correctly applied
- Resolving SARS queries and compliance issues
- Providing clarity‑driven guidance tailored to your tax situation
No fancy words or technical jargon, just clear guidance with compliant, stress‑free tax submissions.