SARS Kicks Off 2025 Tax Season with Key Changes
By: Kelebogile Matlou
South Africa’s 2025 Tax Season officially launched on Monday, 7 July, when the South African Revenue Service (SARS) began rolling out auto assessments to eligible taxpayers. These assessments will be sent out in batches from 7 to 20 July. From 21 July, individual taxpayers both provisional and non-provisional as well as trusts will be able to manually file their tax returns.
SARS has introduced significant changes this year, which include an expanded auto assessment net. “As previously communicated, some provisional taxpayers will be invited to take part in auto assessments in 2025,” said SARS. To support this, SARS introduced a new feature in its Online Query System called the Provisional Taxpayer Auto Assessment Request. This tool enables eligible provisional taxpayers who have received the relevant SARS notifications to request inclusion in the auto assessment process for 2025.
All individuals who are auto-assessed will receive SMS or email alerts. They are encouraged to check their assessment status on eFiling or the MobiApp. Taxpayers should be cautious of scams and fraudulent activity, which typically spike during the filing season.
One of the major updates involves South African expatriates. Those who have moved abroad must now indicate if they have reinstated tax residency. SARS warns that expats who haven’t formally ended their South African tax residency may still be considered tax residents, which could create issues upon return.
Taxpayers will now be allowed to fully utilise foreign tax credits for taxes paid on capital gains abroad, similar to local capital gains tax. Unused foreign tax credits may be carried forward for up to six years. Employers must report sections 11(nA) and 11(nB) details on the IRP5/IT3(a) certificate.
- Code 4042 (11(nA)) will be included under general reporting.
- Code 4058 (11(nB)) will appear in the Other Deduction field.
From 1 March 2025, labour brokers who have an approved exemption certificate will be classified as provisional taxpayers, making them subject to provisional tax return submissions such as IRP6.
The termination date for the Learnership Agreement has been extended from 1 April 2024 to 31 March 2027.
- A line item for Allowable interest expenses incurred in the production of interest received has been introduced under Foreign Interest on the ITR12 return.
- Backdated salaries and pensions will now be reflected using new source codes 3623 and 3673.
- Executors of estates can now provide interest earned dates for section 10(1)(i) exemption accuracy.
- Two new source codes: 4306 (local dividends) and 4307 (foreign dividends) are added under non-taxable income.
- For trust income, SARS will apply a 50% split where the taxpayer is married in community of property.
SARS will notify taxpayers on the ITA34 if carryover amounts from deductions like section 11F, 18A, or 20 are not yet considered due to ongoing verification. These will be processed once verification is complete. To streamline the experience, SARS has enhanced the RAV01 and ITR12 forms.
Taxpayers will now see a list of their verified bank details on file and must select from that list instead of entering account information manually. As the 2025 tax season unfolds, it is essential for all taxpayers to stay updated and compliant by regularly checking SARS communication channels and platforms like eFiling and MobiApp.
