We’d like to explain how these certificates are generated so that when you receive yours, you understand what it means and why it matters. Two documents that often cause confusion are the IRP5 and the IT3. Here’s a straightforward guide to help you make sense of them before submitting your return.

As social media continues to evolve, more South Africans are turning their creativity into income—whether through sponsored posts, affiliate links, or gifted products. If you're one of them, it's important to understand how SARS views this kind of income and what that means for your tax responsibilities.

Many South African businesses act as agents—buying or selling goods and services on behalf of clients. This can be a practical solution when clients prefer not to manage suppliers themselves and are happy to pay a fee for someone else to handle the logistics. After listening to Pieter van der Zwan’s TaxBreak podcast episode on VAT and agency relationships, I revisited Section 54 of the VAT Act to unpack what it means for VAT-registered businesses operating in this way.

Auto-assessments notices started on the 7th of July until the 21st of July. This means that SARS has taken all the information submitted by 3rd parties and prepared your tax return. You no longer need to approve your return, and SARS will pay out your refund within 72 hours of the assessment.

At our firm, we’re committed to helping you stay compliant, informed, and stress-free when it comes to tax matters. Whether it’s VAT, PAYE, or Income Tax, we’re here to support you every step of the way. But we need your help with something important.

One of the most notable changes is the automation of the application process for requesting relief from South African tax under Double Taxation Agreements (DTA) for pensions and/or annuities. This means that you can now submit your applications via eFiling, making the process more efficient and reducing the need for manual interventions. SARS aims to evaluate these applications within 21 working days.

Turnover tax is a simplified tax system aimed at reducing the administrative burden for small businesses with an annual turnover of less than R1 million. If your turnover exceeds R1 million, you must register for VAT and pay tax at standard rates. Businesses can be registered for both turnover tax and VAT (voluntary registration).

As the 2025 individuals tax season approaches, it's essential to start gathering the necessary documents to ensure a smooth and timely submission of your tax return to the South African Revenue Service (SARS). You are more than welcome to start sending this to Pumeza and we will save this on file. We aim to make this process as seamless as possible for you. Below, we've outlined the key dates for the 2025 tax season and a comprehensive list of documents you'll need to provide us. Additionally, we'll explain the auto-assessment process and how we can assist you with it.

As we approach the new financial year, we want to remind you of an important update regarding the minimum wage rates in South Africa. Effective since 1st March 2025, the minimum wage rates increased as follows:

As accountants, we often get questions from our clients about the different types of VAT rates and how they apply to their businesses.

In this post, we'll break down these concepts and explain when each rate is effective, how they affect your input VAT claims, whether you need to register for VAT if your business delivers zero-rated supplies, and the requirements for a VAT invoice.

As we approach the end of February 2025, it's time for a friendly reminder about some important tax deadlines. The second provisional tax payment is due by the end of February 2025. 

This is a crucial deadline for all taxpayers, and it's essential to ensure that your payments are made on time to avoid any penalties or interest from SARS.

As your trusted accountant, I want to share an incredible opportunity for you to grow your wealth without the burden of taxes. Introducing the Tax-Free Savings Account (TFSA) – a powerful tool designed to help you save more efficiently.

A Tax-Free Savings Account (TFSA) is a special type of savings account that allows you to earn interest, dividends, and capital gains without paying any tax on these earnings. This means that all the growth in your investment remains entirely yours, free from the clutches of the taxman.

The South African Revenue Service (SARS) has recently updated the definition of "residence" in the VAT Act, effective from the 1st of January 2025. The recent change in the VAT Act's definition of residence was made to align the VAT regulations with the criteria used in the Income Tax Act. This alignment aims to provide clarity and consistency across different tax regulations, ensuring that the criteria for determining residency are uniform.

As the start of a new tax year approaches, it’s time to shift our focus towards effective tax planning and ensuring a smooth filing process when the time comes. For South African taxpayers, this means being proactive about retirement annuity contributions and keeping track of important documents as well as remembering to track your travel if you receive a travel allowance. With filing season typically kicking off in July, now is the perfect time to get organised and stay ahead of the game.

As we approach February 2025 it's time to remind you about the upcoming deadline for the 2nd provisional tax payment. This applies to companies with a financial year ending in February, as well as all provisional taxpayers in South Africa. Ensuring that your provisional tax is submitted on time is crucial to avoid penalties and interest imposed by the South African Revenue Service (SARS).

As part of ongoing efforts to streamline tax processes and ensure accurate reporting, SARS has introduced a new requirement for trusts: the IT3(t) form.

The new IT3(t) requirements for trusts will be effective for the 2024 tax year. Trustees are required to submit the IT3(t) certificates by 31 May 2024. This means that all distributions made to beneficiaries between 1 March 2023 and 28 February 2024 must be reported using the IT3(t) form by this deadline.

Proper record-keeping is essential for accurate tax reporting and compliance with the Tax Administration Act and other relevant tax laws in South Africa. Maintaining accurate and complete records is crucial for a few reasons: It substantiates the information reported in your tax returns, It enables you to respond effectively to any queries or audits from SARS, and it provides a clear financial history, which is beneficial for personal financial management and planning.

We understand that the thought of a VAT audit can be daunting, but it needn’t be. With the right preparation and a thorough understanding of the process, it can be a smooth and stress-free experience.

In this blog, we will provide you with an overview of why a VAT audit happens in South Africa, what the process entails, and how we ensure that all necessary documents are ready and available from the start.