South African tax questions,
answered in plain language

A refund happens when the PAYE deducted from your salary during the year is more than the tax you actually owed. You only get it by submitting your income tax return (ITR12) for that tax year with your IRP5, medical aid certificate, retirement annuity certificate and any other deduction certificates. If the assessment shows a negative balance, that amount is due back to you.

Where your banking details are verified and no audit is raised, SARS usually pays out within about 72 hours of the assessment. If you are selected for verification you must upload supporting documents, and payment only follows once that review is finalised — this can take 21 business days or longer.

The most common reasons are unverified or changed banking details, an outstanding return for an earlier year, an old debt that SARS sets the refund off against, or a verification request sitting unanswered on eFiling. Clearing the oldest issue first is usually what releases the money.

Yes. On a SARS assessment or statement of account, a negative (minus) balance means SARS owes you, and a positive balance means you owe SARS.

In most cases it is administrative penalties for returns that were never submitted, not extra tax on your salary. SARS charges a fixed monthly penalty for each outstanding return, and it keeps running every month until that return is filed — which is why a small oversight becomes thousands of rands.

SARS does appoint external debt collection agents, and they usually call about penalties and old assessments. Never pay a collector into a private bank account. Ask for your tax reference number and the period, then check the balance yourself on eFiling or through a registered tax practitioner before paying anything.

Administrative non-compliance penalties are charged per outstanding return per month, on a sliding scale based on your taxable income — starting at R250 a month for lower incomes and rising sharply for higher earners. Interest is charged on unpaid tax on top of that.

Often, yes. Once the outstanding returns are submitted you can lodge a request for remission, and then an objection or appeal if it is declined. Grounds like illness, retrenchment, never having been required to file, or not receiving correspondence are considered. It has to be motivated properly and within the time limits.

Yes. If you cannot settle a confirmed debt in full, you can apply for a deferred payment arrangement. SARS wants an accurate picture of your income and expenses, and all outstanding returns must be up to date before they will consider it.

Not always — SARS exempts some salaried taxpayers below the income threshold with a single employer and no other income or deductions. But if you have medical aid, a retirement annuity, travel allowance, rental income, a side income, or you changed jobs during the year, filing is how you claim what you are owed. Many people who are 'not required' to file are actually due a refund.

SARS pre-populates a return from data it receives from employers, medical schemes, banks and retirement funds, and issues it as an assessment. It is only as complete as that third-party data, so it usually misses out-of-pocket medical costs, home-office claims, travel logbooks and donations. Check it against your own certificates before accepting it — you can still file a corrected return.

Filing season for non-provisional individuals normally opens in July and closes in October, with provisional taxpayers having until late January. Provisional payments (IRP6) are due at the end of August and the end of February each year.

You can and should submit old outstanding returns — SARS keeps charging penalties until they are in. Refunds for older years may be limited by prescription rules, but bringing your record up to date is what stops the monthly penalties and clears your compliance status.

Your IRP5/IT3(a) from each employer, medical aid tax certificate and out-of-pocket medical receipts, retirement annuity or pension certificate, IT3(b)/(c) for investments, a travel logbook if you receive a travel allowance, rental income and expense records, and your banking details.

If you have ever been employed you almost certainly already have one — your employer registered you. You can request it by SMS, on the SARS MobiApp, on eFiling, or ask your employer, as it appears on your IRP5. AfriTax can also confirm it for you as your registered practitioner.

Your compliance status shows on eFiling and depends on having no outstanding returns and no outstanding debt. It is what banks, tenders and employers check. If either box is red, filing the missing returns is normally step one.

Yes. A SARS-registered tax practitioner can be linked to your profile and file, correspond and object on your behalf. AfriTax practitioners are registered with SARS and a recognised controlling body, and you stay in control of your own eFiling profile.

PAYE is worked out on your annual taxable income using the SARS tax tables, less rebates and medical tax credits. Contributions to a pension, provident fund or retirement annuity reduce your taxable income, which is why two people on the same salary can pay very different tax.

A bonus is taxed as part of your income for the year, so it is taxed at your marginal rate — the rate on your top slice of income. Payroll often withholds more than the final amount, and that difference typically comes back as a refund when you file.

Yes — through medical scheme fees tax credits, a fixed monthly amount for you and each dependant, plus an additional credit for qualifying out-of-pocket expenses above a threshold. Keep your medical aid tax certificate and receipts for costs the scheme did not cover.

Retirement fund contributions are deductible up to 27.5% of the greater of taxable income or remuneration, capped at R350 000 a year. The saving equals your contribution multiplied by your marginal tax rate.

Only under strict conditions: a specific area used regularly and exclusively for work, and for salaried employees, more than half your duties performed there. SARS scrutinises these claims and asks for a letter from your employer, a floor plan and proof of expenses.

A savings-pot withdrawal is added to your income for the year and taxed at your marginal rate, and SARS first deducts any tax debt you owe before the fund pays you. That is why the amount that lands in your account is often much less than expected.

Generally yes if you earn meaningful income that is not taxed through PAYE — freelance work, rental income, or substantial interest and investment income. Provisional taxpayers submit IRP6 estimates in August and February on top of the annual return.

Yes. Income from freelancing, tutoring, deliveries or renting out a room is taxable and must be declared, but you can deduct the genuine expenses you incurred to earn it. Keeping simple records through the year makes this straightforward.

Usually as capital gains tax when you dispose of the asset, or as normal income if you trade frequently enough to be seen as a trader. Either way SARS receives data from local platforms, so it should be declared.