Tips to Benefit From 2025 Tax Returns Legally: Maximise Your Refund, Minimise the Stress
Your Ultimate Guide to Navigating SARS in 2025 Without Penalties, Scams, or Sleepless Nights
The 2025 tax season is officially underway, and South Africans have until October 20 to get their tax affairs in order. But before you break into a cold sweat or hire an expensive consultant, take a deep breath. There are smart, legal ways to lower your tax burden, maximise your refund, and protect yourself from scams—all without cutting corners.
1. Start With the Basics: Update Your eFiling Profile
Before you even think about numbers, update your contact and banking details on SARS eFiling. According to Roxanna Naidoo, Head of Global Strategy at Latita Africa, incorrect details can lead to communication breakdowns, refund delays, or worse—penalties.
Make sure the following are current:
- Email address
- Cellphone number
- Banking details
Having the right information unlocks access to SARS’ auto-assessment feature and the new express filing tool, both of which can save time, but only if used correctly.
2. Trust But Verify: Auto-Assessments Aren’t Always Right
SARS has ramped up its AI-driven tax collection systems, but even technology makes mistakes, especially with complex financials like:
- Rental income
- Side hustles
- Freelance gigs
- Crypto earnings
- Overseas income
Naidoo urges taxpayers not to blindly accept their auto-assessments. “Always double-check the data. If it looks wrong, click ‘Request Amendment’ and make corrections through eFiling.”
3. Declare All Your Income – Then Use Legal Deductions
Transparency is non-negotiable. Declare every income stream, even if it’s already been taxed elsewhere. After that, make SARS work for you by applying for:
- Medical expense claims
- Charitable donations (with Section 18A certificates)
- Retirement annuity contributions
- Home office and travel expenses
- Tax-free savings accounts
- Capital gains tax exclusions
These legitimate tax breaks can significantly reduce what you owe or boost your refund.
4. Keep Every Receipt—For Five Years
SARS doesn’t just want to know what you filed. They want to know why. Keep a digital or physical archive of:
- Receipts
- Bank statements
- Tax credit records
- Donation certificates
- Any documents used in your filing
These records are essential in case SARS questions your return, even years later.
5. Got a Penalty or Tax Debt? Don’t Panic, Negotiate
If you’ve been hit with a penalty or owe SARS more than expected, you have options:
- Negotiate for a reduced amount
- Request to defer payments
- File a suspension of payment to halt legal action during disputes
- Opt for mediation if resolution proves difficult
The worst thing you can do? Ignore it. Waiting until SARS knocks can lead to frozen accounts or garnished wages.
6. Watch Out for SARS Scams
Scammers are exploiting tax season to steal personal data. A recent phishing scam mimicked a SARS SMS about a “tax refund audit,” leading victims to a fake website.
Here’s how to stay safe:
- Never click links in unsolicited messages
- Verify SARS communication via the official website or call centre
- Enable two-factor authentication on your eFiling account
Tax Season Is Your Friend—Not Your Enemy
Tax season isn’t just a legal obligation—it’s a financial opportunity. By verifying your auto-assessment, claiming your deductions, and keeping clear records, you can turn tax season into refund season. As Roxanna Naidoo puts it, “Go have a look at what you owe SARS; you may be surprised that SARS actually owes you money.”
So, log in, check the details, and file like a pro, legally and confidently.
Also read: How Taxation Works for Gambling and Trading Income in Gauteng
