Whether you must file an income tax return depends on your circumstances, and the rule is published each year. Many people who need not file should file anyway, because a refund is only paid on a return that is submitted.
This page covers who must file, who should, what to check before submitting, and what to do when an assessment is wrong.
Business Requirements at a Glance
Broadly, who is required to file an income tax return.
- Any person whose gross income exceeds the threshold SARS publishes for the year of assessment
- Any person carrying on a trade, including a business, freelance work or rental
- Any person who received income other than remuneration from a single employer
- Any person who is a provisional taxpayer
- Any person who received a capital gain or loss above the prescribed amount
- Any person who held certain foreign assets or income
- Any person to whom SARS has issued a return, regardless of income
- Every registered company, for every year of assessment
Registration and Legal Requirements
Confirm the current filing requirements and thresholds with SARS. They are published each year in a notice and they change. The SARS website is the authoritative source.
Companies must file every year, including dormant companies with no activity. A dormant company still submits a return, and failing to do so attracts administrative penalties.
Even where filing is not required, file if tax was over-deducted. Medical expenses, retirement annuity contributions, donations to approved public benefit organisations, and travel or home office claims where they apply can all produce a refund — and no return means no refund.
Auto-assessment is not final. Where SARS issues an auto-assessment, you can accept it or file a return with the correct information. If deductions you are entitled to are missing, file rather than accepting. Confirm the current period within which you may do so.
Check the pre-populated data. Employer certificates, medical scheme certificates, retirement annuity certificates and interest certificates are submitted to SARS by third parties, and errors in them become errors in your assessment. Compare against your own documents.
Documents and Ownership Information Required
What is needed to file.
- SARS eFiling registration and access
- Employer tax certificates for the year
- Medical scheme certificates and records of qualifying out-of-pocket expenses
- Retirement annuity and pension fund contribution certificates
- Interest and investment income certificates
- A travel logbook, where a travel allowance is claimed
- Records supporting a home office claim, where one applies
- Section 18A receipts for donations to approved public benefit organisations
- Records of any capital gains or losses
- For a business: financial statements and supporting records
Tax, Licence and Compliance Requirements
A travel claim needs a logbook. A travel allowance claim without a logbook recording business kilometres is disallowed, and reconstructing one afterwards is not acceptable. Keep it as you drive.
Home office claims have strict requirements under the Income Tax Act, including that the space is used regularly and exclusively for the purpose and that the requirements applicable to your type of income are met. Confirm the current rules with SARS before claiming, because this is an area SARS verifies closely.
Donations need a section 18A receipt from an approved public benefit organisation, with the organisation’s reference number. A general donation receipt does not support the deduction.
Keep every supporting document for the period the Tax Administration Act 28 of 2011 prescribes from submission, and longer where a verification, audit or dispute is open. SARS routinely requests supporting documents after submission, on a deadline.
Respond to a verification request on time. Failing to submit the documents requested leads to the deduction being disallowed and an amended assessment.
Dispute within the prescribed period. Objection and appeal periods under the Tax Administration Act are strict, and a late objection requires condonation that is not guaranteed. If an assessment is wrong, act immediately.
Refunds can be withheld where returns for other periods are outstanding or where verification is under way. Filing all outstanding returns is usually what releases a delayed refund.
Use a registered tax practitioner for anything complex, and verify their registration with SARS and a recognised controlling body. Anyone promising a guaranteed refund is not a practitioner you should use — inflated claims become your liability, with penalties.
Process, Deadlines and Ongoing Obligations
File on eFiling within the season SARS publishes for your taxpayer type. Gather the certificates and supporting documents before starting, and compare the pre-populated data against your own records.
Keep the supporting documents accessible after filing, because a verification request arrives after submission with a deadline attached.
- Confirm the current filing requirement and thresholds with SARS
- File even if not required, where a refund is likely
- Companies must file every year, including dormant ones
- Do not accept an auto-assessment that omits deductions you are entitled to
- Compare pre-populated data against your own certificates
- Keep a travel logbook as you drive — not afterwards
- Confirm the current home office rules before claiming
- Obtain section 18A receipts for donations
- Respond to verification requests within the deadline
- Object within the prescribed period if an assessment is wrong
Frequently Asked Questions
Do I have to file a return?
It depends on your income and circumstances, and SARS publishes the rule each year. If SARS issued you a return, you must file regardless.
Should I file if I do not have to?
Often yes. Medical expenses, retirement annuity contributions, approved donations and other deductions can produce a refund — and no return means no refund.
Is an auto-assessment final?
No. You can file a return with the correct information instead of accepting it. If deductions you are entitled to are missing, file. Confirm the current period for doing so.
Why is my refund delayed?
Commonly because returns for other periods are outstanding or a verification is under way. Filing all outstanding returns and responding to verification requests is what releases it.
Filing requirements, thresholds, deduction rules, verification and dispute periods are set in the Income Tax Act and the Tax Administration Act and by SARS, and are revised annually. Confirm current requirements with SARS or a registered tax practitioner.