Every individual who meets the criteria specified by SARS is legally required to submit an income tax return for a year of assessment. (Section 25 of the Tax Administration Act (TAA), No. 28 of 2011)
Individuals in South Africa are taxed on a residency-based system, meaning tax is payable on worldwide income if the individual is a tax resident. (Section 1 of the Income Tax Act (ITA), No. 58 of 1962)
SARS announces the annual tax season for individuals, typically running from July to October (non-provisional taxpayers) and until January for provisional taxpayers.
Individuals earning above the tax threshold, or with multiple income sources, allowances, or deductions, must submit a return.
Employers, financial institutions, and medical aids are legally required to submit third-party data to SARS to support prepopulated tax returns.
SARS has mandated eFiling as the primary method for submission of personal income tax returns for most taxpayers.
Failure to submit returns can result in administrative penalties and possible criminal prosecution.
From 2020, SARS introduced auto-assessments using third-party data, with taxpayers needing to confirm or correct the return as produced by this process.
Taxpayers may dispute an assessment or decision made by SARS by lodging an objection.