Start preparing for 2025 tax Season

Start preparing for 2025 tax Season

• 09 June 2025
• Tax Administration
• Adv Christel van Wyk

The South African Revenue Service (SARS) has officially announced the timelines for the 2025 Tax Season. Taxpayers are encouraged to begin preparations early to ensure accurate and timely submissions. The key filing dates are as follows:

• Auto-assessments: 7 – 20 July 2025
• Non-provisional taxpayers not subject to auto-assessment: 21 July – 20 October 2025
• Provisional taxpayers: 21 July 2025 – 19 January 2026

Action Required Where an Auto-Assessment is Issued

SARS issues auto-assessments based on third-party data it receives. While this may simplify the process, errors or omissions can occur. Importantly, the taxpayer remains legally responsible for the accuracy and completeness of any tax return submitted.

If you receive an auto-assessment, you should:

• Carefully review it for correctness.
• Submit a corrected return with the necessary supporting documents if discrepancies are found.

Complex Returns Require Careful Preparation

For taxpayers not issued an auto-assessment, it is essential to work carefully through all the questions in the 2025 tax return—particularly those requiring detailed or complex disclosures.

SARS provides comprehensive guides to assist, but in more intricate cases, seeking help from a registered tax practitioner is advisable. Where uncertainty exists, do not rely on assumptions. The taxpayer bears the burden of proof and must substantiate claims such as:

• Income being exempt from tax;
• Income being capital in nature rather than revenue;
• Deductibility of certain expenses;
• Whether income from a trade is subject to ring-fencing;
• That the return is complete and accurate.

Even exempt income must be disclosed. Omitting it can flag the return for audit and may be viewed as a failure to make full disclosure. SARS uses advanced systems to detect discrepancies and is increasingly conducting in-depth audits.

Being well-prepared with complete and accurate returns, and having supporting documents on hand, significantly improves a taxpayer’s position in the event of audits, verifications, or disputes.

Avoiding Common Pitfalls

Several recurring mistakes can lead to tax disputes and financial penalties:

• Misclassification of expenses in capital gains calculations:
  For example, some taxpayers incorrectly include non-deductible costs—such as maintenance, municipal fees, or bond repayments—when calculating the base cost of immovable property. Only certain expenses (e.g. purchase price, transfer costs, and improvements) are allowable. Failure to retain accurate supporting documents can result in tax liabilities and penalties.

• Incorrectly claiming as an independent contractor:
  Taxpayers sometimes claim deductions reserved for independent contractors, while actually being employees. This has implications not only for the individual but also for the employer, who may be liable for PAYE not withheld.

• Assuming tax treatment remains the same annually:
  Tax laws and interpretations change. One must review any relevant amendments each year. For instance, recent changes affecting retirement savings withdrawals can result in unexpected tax liabilities due to "bracket creep," where the added income pushes the taxpayer into a higher tax bracket.

Even when a registered tax practitioner submits your return, it remains the taxpayer's responsibility to:

• Confirm the return's accuracy; and
• Ensure it is submitted by the deadline.

Active engagement with your tax practitioner is essential.

Plan Ahead for Peace of Mind

Early and thorough preparation is key to a smooth tax season. Understanding what is required, being organized with documentation, and planning for any complex items will save time, reduce stress, and help avoid costly errors.

Being proactive not only ensures compliance but also provides peace of mind—and that’s always a wise investment.

To learn how to navigate the 2025 Tax Season and avoid common pitfalls, join our upcoming webinar. Register here to secure your spot and stay ahead of your tax obligations.

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