Practical steps to prepare for the 2025 Tax Season

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Practical steps to prepare for the 2025 Tax Season

• 06 May 2025
• Tax Administration
• Adv Christel van Wyk

The 2025 Tax Season will likely be announced soon, with filing expected to commence around July 2025. SARS audits and verifications are on the rise, creating uncertainty and anxiety for many taxpayers. However, early and strategic planning can go a long way in ensuring a smooth and efficient tax filing process.

Adopting a structured, phased approach is recommended. The initial steps should include basic checks and balances, such as ensuring both you and your tax practitioner have access to eFiling, updating your contact and banking details, and reviewing your tax compliance status. Any outstanding tax returns should be submitted, and any tax debt actively managed. Addressing these issues before Tax Season begins will allow you to start with a clean slate.

It's also important to take a high-level view of your overall tax position: this includes reviewing all sources of income, any deductible expenses, and income that may be exempt from tax. The information submitted in your return must be accurate and complete in all respects.

While some third-party tax certificates may only become available once Tax Season officially opens, you can begin your preparation early. This includes drafting schedules and calculating the following:

• All income streams, including detailed breakdowns of worldwide gross income, the source and nature of each income stream, and reconciliation with bank statements;
• Capital gains realised;
• Exempt income, along with justifications for exemption; and
• Tax deductions, supported by accurate records and documentation.

It's a good idea to prepare a detailed motivation letter, explaining the source and nature of the income, the rationale for any deductions, and how you meet the legislative requirements. Your tax practitioner can help refine this letter as needed, especially where there is uncertainty.

Ahead of the Tax Season, you should ideally gather all required supporting documents and be fully audit-ready. SARS has broad audit and verification powers, and taxpayers are usually required to respond with supporting documentation within tight deadlines.

Careful consideration should also be given to the correct tax treatment of items, especially in light of recent legislative changes. Where legislation is complex or a tax position is uncertain, professional advice should be sought. A written opinion from a tax expert can support the reasonableness of a tax position and help mitigate the risk of penalties. Understatement penalties can be substantial and are based on the taxpayer's behaviour. Although SARS bears the burden of proving the grounds for such penalties, taxpayers should be prepared to justify their positions and take early action, such as filing a Voluntary Disclosure if needed.

As tax treatment can change year to year, taxpayers must remain aware of applicable tax principles, recent legislative amendments, and relevant case law. This ensures that disclosures in the current tax return are accurate and appropriate.

Once the tax return and supporting documents have been submitted, SARS may initiate a verification. The turnaround time for providing additional documents is typically short. If SARS requests documents in a specific format, and you cannot comply, you should be ready to explain why and provide the best available alternative.

In summary, starting early and being proactive in preparing for the 2025 Tax Season will help ensure full tax compliance and minimise potential challenges and frustrations along the way.

Learn more about taxpayers' constitutional right to object and appeal against SARS assessments or decisions in our upcoming webinar – register now to secure your spot.

 

FAQs

1. When does the 2025 tax season start in South Africa?

The 2025 tax season for individual taxpayers in South Africa is expected to open around July 2025, depending on SARS's official announcement. It's important to start preparing your documents ahead of time to avoid penalties or delays in filing.

2. What documents do I need for the 2025 tax season?

To file your 2025 tax return, you'll need:

• Your IRP5/IT3(a) from your employer

• Proof of medical aid contributions

• Retirement annuity certificates

• Investment income statements (IT3(b))

• Travel logbook, if claiming travel expenses

• Proof of donations (Section 18A certificates)

Gathering these early helps streamline your filing.

3. How can I prepare for the 2025 tax season in South Africa?

Start by updating your contact details with SARS, collecting supporting documents, checking your tax compliance status, and ensuring you’re registered for eFiling. Keep track of income and expenses if you’re self-employed or a provisional taxpayer.

4. Is it better to file my 2025 tax return early?

Yes, filing early can help you avoid last-minute technical issues, allow time to correct errors, and often results in a faster refund if you're owed one. Early filing also gives SARS time to prepopulate your return if applicable.

5. Who must file a tax return in South Africa for 2025?

You must file if you:

• Earn more than R500,000 from a single source

• Receive income from multiple sources

• Have rental or freelance income

• Are a provisional taxpayer

• Need to claim deductions like medical, travel, or retirement contributions

6. What happens if I don’t file my tax return on time in 2025?

Missing the deadline can lead to administrative penalties, interest charges, and compliance issues. SARS may also issue estimated assessments, which you’ll need to dispute formally if incorrect.

7. Can I use eFiling to submit my 2025 tax return?

Yes, SARS eFiling is the easiest and most efficient way to file. Ensure you're registered and your login details are up to date. SARS also offers Auto-Assessments, which some taxpayers can accept via the SARS MobiApp or eFiling.

8. How do I know if SARS will auto-assess me in 2025?

SARS will notify you via SMS or email if you're selected for auto-assessment. You’ll be able to view and accept it through eFiling or the SARS MobiApp. If the data is incorrect or incomplete, you must edit and file it manually.

9. What deductions can I claim for the 2025 tax year?

Common deductions include:

• Medical expenses not covered by your medical aid

• Retirement annuity contributions

• Donations to registered charities (Section 18A)

• Home office expenses (if you qualify)

• Travel costs, if reimbursed or required for work

Ensure you have valid supporting documents for all claims.

10. What are the key deadlines for the 2025 tax season in South Africa?

While SARS hasn’t officially confirmed 2025 dates yet, based on previous years:

• Non-provisional taxpayers using eFiling: Deadline likely around October 2025

• Provisional taxpayers: Deadline expected in January 2026

Always check the SARS website or Tax Faculty updates for final confirmed dates.

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