Deceased Estate Post Death eFiling

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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.

 

FAQs

1. How do I file a tax return for a deceased person in South Africa?

To file a return for a deceased person, the executor must activate the "Deceased Estate" profile on SARS eFiling. After SARS receives the death certificate and Letter of Executorship, the profile is updated to allow submission of any outstanding tax returns for the deceased.

2. What is the SARS post-death process for tax compliance?

After a person dies, SARS requires a post-death activation on eFiling. The executor must ensure:

• All tax returns are up to date as of the date of death

• New estate profile activated

• Final tax return submitted for the deceased

This process helps SARS assess and finalise any outstanding tax liabilities.

3. Can I use eFiling to manage a deceased estate's taxes?

Yes. SARS eFiling supports deceased estate compliance. The executor or tax practitioner must submit a request via the RAV01 form and include the deceased’s death certificate and Letter of Executorship. SARS will then enable estate administration functions on the profile.

4. Who is responsible for submitting tax returns after death?

The executor of the deceased estate is legally responsible for handling all tax matters after death. This includes ensuring that all tax returns—both before and after the date of death—are submitted and any outstanding taxes are paid from the estate.

5. What documents are needed to activate a deceased estate on eFiling?

To activate a deceased estate profile, SARS requires:

• The deceased’s ID

• Death certificate

• Letter of Executorship or Authority

• Proof of the executor’s identity

These documents must be submitted via SARS eFiling or at a branch.

6. How long does SARS take to process a deceased estate?

Timelines vary, but once all required documents are submitted, SARS typically updates the profile and finalises assessments within 21 business days. Delays can occur if there are outstanding returns, disputes, or missing documentation.

7. Do I need to file a return for the estate after death?

Yes. After the date of death, the deceased estate itself becomes a separate taxpayer. If the estate earns income (e.g., rental, interest), the executor must register the estate and file tax returns under its own tax reference number.

8. What happens if the deceased has outstanding tax returns?

If there are outstanding returns, SARS will not process the estate until these are resolved. The executor must file all pending tax returns, pay any tax debts, and ensure compliance before the estate can be wound up or assets distributed.

9. Can a tax practitioner manage a deceased estate on eFiling?

Yes, a registered tax practitioner can act on behalf of the executor, provided they have a Power of Attorney. They can activate the estate’s profile, file returns, and communicate with SARS through eFiling or in person if required.

10. How do I get a new tax number for a deceased estate?

If the estate generates income after the death, it must be registered as a separate taxpayer. This can be done on eFiling or at a SARS branch by submitting the relevant documents and requesting a new tax reference number for the estate.

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