Tips for tax filing season in South Africa

In this episode of Everything Counts, we unpack why your annual tax filing should be treated less like a compliance exercise and more like a financial health check; one that can reveal gaps, opportunities and even risks in your broader financial plan.

Rethinking tax filing as a financial health check

Filing your taxes isn’t just about ticking a box for SARS. Instead, it’s the point where your financial decisions, investments and tax planning strategies come together. Any changes in your financial life - from property purchases and rental income to offshore investments or residency status - need to be accurately reflected in your return.

A well-prepared tax return tells a coherent story about your financial position. It helps make sure you’re paying the right amount of tax.

This becomes especially important if you earn a higher income or have multiple income streams, where things can get complicated quickly and mistakes are easier to make. This is where structured tax planning plays a role.

It ensures that your tax decisions support your long-term goals, not just your short-term obligations.

Is SARS auto-assessment accurate?

SARS auto-assessments have simplified the filing process for many taxpayers, but they aren’t completely foolproof. These assessments rely on third-party data from employers, banks and medical schemes, and that data may be incomplete or incorrect.

Accepting an auto-assessment without reviewing it carefully can be risky. If you do nothing, SARS assumes you agree with the assessment, even if it doesn’t reflect your true tax position. Recent changes for the 2026 tax year further reinforce this, as more taxpayers (including some provisional taxpayers) may now fall within the auto-assessment system.

The key takeaway is that you should always review your auto-assessment thoroughly. Check your income, deductions and any changes in your circumstances before accepting it.

Common tax mistakes to avoid

Errors in tax returns are more common than you might think, and they often come down to missing or misunderstood information. That’s why having a solid grasp of the basics before you file is so important - not just to stay compliant, but to make sure you’re not unnecessarily leaving money on the table or attracting avoidable SARS scrutiny.

Medical aid contributions are a good example. They’re frequently reported incorrectly, particularly when additional documentation is required beyond a standard tax certificate. While taxpayers do receive fixed medical tax credits, additional deductions are far more limited and subject to strict thresholds.

For instance, out-of-pocket medical expenses must exceed 7.5% of your taxable income before any further deductions can be claimed, which is a threshold that many high-income earners never actually meet. On the other hand, some taxpayers may overlook legitimate additional deductions, such as those related to disability expenses.

Travel allowances are another area where errors can easily creep in, especially when record-keeping isn’t consistent. Without a properly maintained logbook, claims can quickly fall apart under scrutiny. And while these mistakes may seem minor, they can have a meaningful impact on both your refund and your overall compliance position.

Structuring a tax-efficient remuneration package

Your tax return reflects how much you earn, but it also reflects how your income is structured. The way that your income is structured can significantly influence your overall tax efficiency. Understanding your cost-to-company (CTC) package is key here, as it goes beyond your salary to include benefits like medical aid, retirement contributions, travel allowances and share incentives.

Different components are taxed in different ways, and a well-structured package can reduce unnecessary tax leakage while improving your long-term financial outcomes.

In some cases, non-cash benefits, like employer-provided devices, may be more tax-efficient than cash allowances, although opportunities for optimisation are becoming more limited as SARS regulations tighten.

For professionals and executives, share-based incentives add another layer of complexity, as they are typically taxed when they vest. Planning ahead for these tax implications is essential.

What happens if you are audited by SARS?

Being selected for a SARS audit may be intimidating, but it doesn’t necessarily mean you’ve done anything wrong; in many cases, it’s simply part of the verification process.

A verification is typically a routine request for supporting documents, often triggered when a refund is due, while an audit involves a more detailed review of your financial affairs.

In both cases, preparation is key. Keeping organised, accessible records of your income, expenses and deductions, and responding promptly with only the information requested, can make the process far more manageable.

This is also where the value of a tax practitioner becomes clear, helping you navigate the process confidently and avoid common mistakes that could raise further questions.

How to maximise your tax refund

Getting the most out of your tax return comes down to a few key principles:

• Verify all information before submission
• Declare all income and gains fully
• Claim only what you can substantiate with documentation
• Keep detailed records throughout the year
• Seek professional advice when needed

Approached this way, tax filing becomes an opportunity to optimise, correct and align your financial position with your long-term goals.

Tax doesn’t exist in isolation; it’s closely linked to your investments, income and broader wealth strategy. The more intentional you are about it, the more value you can unlock.