Tax can be confusing enough, but when you add in South African terms like tax year and tax season, even seasoned expats can scratch their heads. Many South Africans, including those living abroad, often use these terms interchangeably, but they refer to very different concepts. Understanding the difference isn’t just academic – especially if you’re an expat. It could affect your SARS tax return, your ability to claim refunds, and even your compliance with SARS expat regulations.
What/when is the South African tax year?
The tax year in South Africa is the period in which income is earned, and expenses can be claimed. For individuals, it runs from 1 March to the end of February the following year.
For example, the 2024/2025 tax year started on 1 March 2024 and ends on 28 February 2025. During this period, any income you earn (whether from employment, investments, rental properties, or pensions) is subject to South African personal income tax rules. Knowing the exact tax year is vital because it determines which income, deductions, and expenses are included when you file your South African tax return.
What/when is tax season in South Africa?
While the tax year defines when you earn your income, tax season in South Africa refers to the window when SARS allows you to file your SARS tax return. Typically, tax filing season in South Africa runs from July to October or November, with deadlines that vary depending on whether you are an individual, a provisional taxpayer, or using eFiling in South Africa.
During SARS filing season, you must submit your SARS online tax return (ITR12) for the preceding tax year. SARS then reconciles the taxes you owe or are owed, considering any allowable deductions. For many taxpayers, this process can even result in a tax refund in South Africa, but only if your filing is accurate and on time.
Tax year vs tax season in SA – why does this matter for expats?
If you’re an expat, it’s easy to assume that living abroad exempts you from South African taxes. But that’s not always the case. Even if you’ve financially emigrated, you might still have reporting obligations for the tax year in which you left.
Here are some scenarios where expats need to pay attention:
- You earn income in South Africa, such as rental income or dividends.
- You have retirement funds, pensions, or other investments in South Africa.
- You are returning to South Africa and need to prove tax compliance for financial or immigration purposes.
Timing is critical. Filing your South African tax return late can affect refunds, your ability to make international money transfers, and even trigger unnecessary scrutiny. SARS has also recently increased monitoring of expats, with a recent spike in audits and SARS auto-assessment risks for those living abroad. Using the SARS online query system or consulting a SARS expat tax expert can help ensure you’re fully compliant.
Common expat mistakes when it comes to South African tax
Even well-intentioned expats can trip up during SARS tax filing season. Some of the most common mistakes include:
- Confusing the tax year with tax season: Missing deadlines because you assume your filing window aligns with the calendar year.
- Thinking being abroad means you don’t need to file: Non-resident status doesn’t always remove reporting obligations, especially if you earn South African-source income.
- Ignoring provisional tax deadlines: Provisional taxpayers in South Africa must pay estimated taxes twice a year. Missing these deadlines can lead to penalties and interest.
Other pitfalls include failing to properly declare foreign income or misunderstanding non-resident tax in South Africa rules. If SARS identifies discrepancies, it could lead to queries or audits—something many South African expats returning home want to avoid.
Read more: Why should I submit SARS tax returns if I have ceased my tax residency?
SARS tax – key deadlines to keep in mind
Knowing your South African tax return deadline is essential. While deadlines vary, here’s a general guide:
- Individuals using eFiling in SA: usually early November.
- Manual filers: typically early October.
- Provisional taxpayers in SA: payments due in August and February.
Missing a tax return deadline in South Africa can trigger penalties, so mark your calendar well in advance.
SARS auto-assessment – what expats should watch for
SARS has introduced more automated processes like SARS auto assessment to pre-populate returns and expedite filings. While this is convenient, expats should remain vigilant: auto assessments may not capture foreign income correctly, and mistakes can result in unexpected SARS targeting South African expats or additional queries. Always review your SARS online tax return carefully before submission.
Read more: Not auto-assessed? What SA expats need to know about submitting their tax return.
FinGlobal: cross-border tax specialists for expats
For expats, understanding the difference between the South African tax year and tax season helps ensure compliance, prevent penalties, and make financial planning easier. By staying on top of deadlines, knowing your obligations, and seeking guidance when needed, you can stay on the right side of the SARS taxman, whether you’re abroad or returning home.
If you’re unsure about your tax obligations as an expat, we can help clarify your responsibilities and guide you to compliance. Staying informed today can save headaches tomorrow. We can also assist you with any matters relating to tax emigration, retirement annuity withdrawal, international money transfers and more.
To find out more about FinGlobal’s trusted, convenient cross-border tax services for expats, leave your details in the form below and we’ll be in touch!
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