One short, practical South African tax tip every Monday from Mduduzi Lekgobohlo CA(SA). Clear, useful and easy to act on.
Written by Mduduzi Lekgobohlo CA(SA), Chartered Accountant and SARS registered tax practitioner. Tips are general information as at October 2026, not advice for your specific situation.
An auto-assessment or a refund can feel like the end of the matter, but SARS only works with the information it has. Missing medical expenses, retirement annuity contributions or a second income source can mean you are owed more, or that you will be audited later. Have your assessment checked before you accept it.
From 1 March 2026 you can put up to R46,000 a year into tax-free investments (up from R36,000), with a lifetime limit of R500,000. Unused amounts do not carry forward, and anything above either limit is taxed at 40%. Track contributions across all your accounts, not just one.
Source: SARSContributions to pension, provident and retirement annuity funds are deductible up to 27.5% of the greater of your remuneration or taxable income. From 1 March 2026 the annual rand cap rose from R350,000 to R430,000. A top-up before 28 February can reduce this year's tax.
The compulsory VAT registration threshold rose from R1 million to R2.3 million on 1 April 2026, and voluntary registration now starts at R120,000. Registering, staying registered or deregistering each has cash flow consequences, so run the numbers first.
Read morePAYE, UIF and SDL must be declared and paid by the 7th of the following month, or the last business day before it if the 7th falls on a weekend or public holiday. Late payment attracts a 10% penalty plus interest, even if you submit on time.
Read moreOut-of-pocket medical expenses that your scheme did not pay can add to your medical tax credit, especially for people over 65 or with a disability. Keep the receipts and proof of payment; SARS often asks for them in a verification.
SARS can generally ask for records for five years from the date a return was submitted, and longer if an audit or objection is open. Invoices, bank statements, payroll records and contracts all count. Cloud storage makes this painless.
If your second provisional tax estimate is too low, SARS can add a 20% underestimation penalty. Base your estimate on up-to-date management accounts, not last year's figures, and use the voluntary third payment if the year ended better than expected.
Read moreA home office deduction is only allowed in limited cases, for example where the space is used regularly and exclusively for work and most of your duties are performed there. Claiming it incorrectly is a common audit trigger, so check before you claim.
Every company must file an annual return within 30 business days after the anniversary of its incorporation, even if it is dormant. Missed returns lead to penalties and, eventually, deregistration.
Read morePayment arrangements, penalty remission and the Voluntary Disclosure Programme are far easier to secure before SARS starts collection steps. Get your returns up to date first; SARS rarely negotiates while returns are outstanding.
Read moreA trust registered for income tax must submit an ITR12T every year, even with little or no income. Trustees are personally responsible, and beneficial ownership details must be kept up to date with the Master of the High Court.
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