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Deceased Estate Post Death eFiling
- 24 June 2024
- Individuals Tax
- The Tax Faculty Tax Specialist
These articles are based on tax law for the year ending 28 February 2025.
1. The Problem / Facts
How do I submit the post-death return on e-filing?
2. Applicable Law
ITA 58 of 1962 section 1, 6, 6A, 6B, 10(1)(i), 12T, 20, 25, (para 9 of the Eighth Schedule)
3. Application of the Law to the Facts
The post-death tax return is separate from the deceased individual and pertains to the deceased estate, which is defined as a person under section 1 of the Act and treated as a natural person for tax purposes. Once the deceased estate is established, a new tax number is issued. The executor is responsible for reporting all income and expenses related to income generation after death, and this income should be declared to SARS on the ITR12 return. The executor takes control of the deceased's assets post-death, and where these assets generate income, that income becomes the taxable income of the estate, such as rental income or interest income.
The deceased estate does not qualify for personal rebates (s 6) or medical tax credits (s s6A and 6B), but it is eligible for the interest exemption (s 10(1)(i)), which is apportioned after 1 March 2023. If the deceased was a South African tax resident at the time of death, the deceased estate will also be considered a South African tax resident.The year of assessment ends on the last day of February unless the L&D account is finalised before that date. The deceased estate is not classified as a provisional taxpayer.
Assessed losses from the deceased individual are not carried forward to the deceased estate, including Capital Gains Tax (CGT) losses. Any assets sold from the estate will incur CGT.
For annual and lifetime contributions to a tax-free investment, the deceased person and the deceased estate are deemed to be the same person (s 12T(1)(b)) and are exempt from normal tax (s 12T(2)). Expenditure incurred in the production of income may be deductible to determine taxable income.
Assessed losses from the deceased individual are not carried forward to the deceased estate, including Capital Gains Tax (CGT) losses. Any assets sold from the estate will incur CGT.