Yes, it’s tax season in South Africa!
The 2025 filing season for individual taxpayers runs from 7 July to 20 October 2025 for non-provisional taxpayers, and until 19 January 2026 for provisional taxpayers (e.g., freelancers or those with rental income). With 5.2% inflation and an 8.25% repo rate, plus SARS’s increasing audits, young professionals aged 30–55 must act wisely to avoid penalties and maximize refunds. Here are five practical tips for laypeople to navigate tax season and prepare for 2026.
1. Understand Key Deadlines
SARS auto-assesses many taxpayers from 7–20 July 2025, using data from employers and financial institutions. If auto-assessed and satisfied, no action is needed but verify your assessment by 20 October 2025 to correct errors. Non-provisional taxpayers must file by 20 October 2025, and provisional taxpayers by 19 January 2026. Why risk penalties? Submit early via eFiling or the SARS MobiApp to avoid last-minute stress.
2. Gather and Verify Documents
Collect all tax documents: IRP5 (salary), medical aid certificates, retirement annuity (RA) certificates, and investment income statements (IT3b/c). Ensure third-party data (e.g., from employers) is accurate, as errors can skew auto-assessments. For example, a missing RA contribution could cost you a R22,500 deduction at a 45% tax rate on a R50,000 contribution. GET AN RA now. What documents do you need to claim deductions like donations or medical expenses?
3. Maximize Deductions and Exemptions
Leverage tax breaks to reduce your liability:
R100,000 Donations Tax Exemption: Donate to SARS-approved PBOs to save up to R20,000 in donations tax and R22,500 in income tax (at 45%) on a R50,000 donation.
TFSAs and RAs: Contribute R36,000 annually to TFSAs for tax-free growth, or up to R350,000 to RAs for tax-deductible contributions. Check your TAX BACK from an RA with this calculator. https://www.oldmutualretirementtools.co.za/tax-back/
Solar Energy Tax Credit: Claim rebates for solar panels bought and used in 2025, with a VAT invoice. Why miss these savings? Track contributions and keep receipts.
Section 12B Investment – Section 12B of the South African Income Tax Act offers a 235% tax deduction on renewable energy investments, such as solar projects, enabling investors to recover up to 106% of their capital in the first year through tax refunds.
Why Section 12B Seems Exclusive?
High-net-worth individuals dominate Section 12B investments for several reasons. First, the significant upfront capital—often R1 million or more—maximizes tax benefits, as a 45% tax bracket yields a R1,058,000 refund on a R1 million investment. Second, access to tax advisors and debt structuring expertise amplifies returns, which average investors may lack.
4. Update Your Details
Ensure your eFiling profile has current contact and banking details to receive refunds within 72 hours. Since 31 May 2025, SARS communicates only via eFiling or MobiApp, not printed letters. Beware of phishing scams requesting banking details—report suspicious messages to SARS. How can updated details prevent delays or fraud?
5. Prepare for 2026 Now
Start early for the next tax year (1 March 2025–28 February 2026):
Track Income and Expenses: List all income (e.g., side hustles, rentals) and deductible expenses (e.g., medical, donations).
Use Digital Tools: Platforms like TaxTim simplify filing, ensuring accuracy.
Plan TAX EFFICIENT Investments: Invest in an RA, TFSA or Section 12B projects (e.g., solar) for tax-efficient growth. Check your TAX BACK from an RA with this calculator. https://www.oldmutualretirementtools.co.za/tax-back/
Consult Experts: A tax practitioner can optimize deductions, especially for provisional taxpayers submitting IRP6 returns. Why wait? Early planning reduces errors and penalties.
Getting Started Log into eFiling or MobiApp to check your auto-assessment or file by 20 October 2025. Gather documents, claim deductions like the R100,000 donations exemption, and update details. For 2026, track income and explore tax-efficient investments like offshore ETFs or Section 12B projects. Consult a tax professional via www.ffreedom.co.za . Act now to stay compliant and maximize your refund.
