When it comes to tax season, people usually fall into three categories:

• The Proactive – prepared, informed, and early to submit;

• The Procrastinator – informed, but leaves it to the last minute;

• The Panicker – overwhelmed, unsure what to do, and likely to ignore it altogether
  That’s the opinion of Johan Werth, Franchise Principal and Financial Adviser at Momentum, commenting on this year’s tax filing season that opened in July, with auto assessments running from July 7- 20. Non-provisional taxpayers who are not auto-assessed can file between  July 21 and  October 20.

Werth warned: “Assuming SARS will auto-assess your return—or that you don’t need to file at all—can be a costly mistake, especially if you earn below R500,000 per annum.”

If you’re unsure whether you must file, check the SARS website or speak to a tax practitioner.

Who must file a return?

You must file a return if you:

• Earn more than the annual threshold (R95,750 for under-65s in 2025).

• Earn income from multiple sources (e.g., salary and rental).

• Receive capital gains, foreign income, or dividends not subject to automatic withholding tax.

• Want to claim deductions such as medical expenses, retirement annuities, or travel costs.

• Are a provisional taxpayer (e.g., freelancers, small business owners, or rental income earners).

Common tax season mistakes – and how to avoid them:

1. Missing the deadline – Late submissions attract penalties. Set reminders and file as early as possible.

2. Incorrect or incomplete submissions – Double-check all information and documents to avoid delays.

3. Ignoring auto-assessments – Always review your SARS auto-assessment before accepting it.

4. Not claiming deductions – Missed deductions mean lost savings. Keep proof for valid claims.

5. Poor record-keeping – Failing to store tax documents may expose you during an audit. Keep them digitally for at least five years.

What if you don’t file?

Failing to file your return when legally required can result in monthly penalties of up to R16,000, legal action, and restricted access to financial services, including home loans and emigration clearance. It’s a criminal offence not to file if you’re liable.

Tips to stay on track:

• Store all supporting documents safely (digitally or in the cloud) for five years.

• Use a registered tax practitioner or financial adviser, especially if you have complex finances.

• Review your SARS auto-assessment carefully for missing deductions.

• Don’t rush through the process—early, accurate filing is always best.

“Tax season doesn’t have to be stressful, but neglecting it can lead to long-term trouble. Start early, stay organised, and seek professional help if needed,” Werth advised.

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