Filing Your Tax Return: A Simple Guide to SARS eFiling

There is a specific time of year in South Africa that triggers a collective spike in blood pressure. It usually starts in July. You see the billboards, you hear the radio ads, and your colleagues start whispering nervously by the coffee machine. It is Tax Season.

For many, the South African Revenue Service (SARS) feels like the boogeyman. The fear of clicking the wrong button, triggering an audit, or owing money is real. I have seen grown men sweat through their shirts just looking at an IRP5. But here is the truth: Filing your tax return does not have to be a nightmare. In fact, if you do it right, it might be the only time of year the government pays you money.

I’m Nolan, and I want to change your mindset about tax. Instead of viewing it as a punishment, view it as an annual financial health check. Filing your tax return is a crucial part of mastering personal finance in SA. It ensures you are compliant, it keeps your credit record clean (yes, judgments can happen for tax debt), and often, it puts cash back in your pocket.

Today, we are going to walk through SARS eFiling together. No jargon, no panic. Just a simple, step-by-step guide to getting it done.

The “Auto-Assessment” Game Changer

Before we dive into the “how-to,” we need to talk about the new elephant in the room: Auto-Assessments. In recent years, SARS has started using data from banks, employers, and medical aids to calculate your tax for you automatically.

If you are auto-assessed, you will get an SMS or email from SARS saying: “Your assessment is ready for you to view.”

• The Trap: Many people just accept it without looking.
• The Risk: SARS might not have all your data. Did you donate to a charity (Section 18A)? Did you have travel expenses? Did you pay for medical expenses out of your own pocket that weren’t on your Medical Aid certificate?
• The Advice: Never blindly accept. Always log in to eFiling and verify the numbers.

Step 1: The Paperwork (Do This Before You Log In)

You cannot cook a meal without ingredients. Similarly, you cannot start filing your tax return without your documents. If you try to find them while the session timer is ticking down, you will get stressed.

Gather these clearly:

1. IRP5/IT3(a): This is the certificate from your employer showing what you earned and what tax was already deducted.
2. Medical Aid Certificate: This shows your contributions and the “tax credit” you are entitled to.
3. IT3(b): Investment income. If you have a savings account (TymeBank, Capitec, etc.) that earned interest, the bank sends this to SARS.
4. IT3(c): Capital gains. If you sold shares or a property.
5. Section 18A Certificates: If you donated to registered charities (like Gift of the Givers or SPCA), you can claim a deduction.
6. Retirement Annuity (RA) Certificate: If you pay into a private RA, this is your golden ticket to a refund.

Step 2: Logging into SARS eFiling

Go to the official SARS eFiling website.

• First-Timers: You need to click “Register.” You will need your ID number and tax number.
• Veterans: Log in. If you forgot your password (which happens to everyone once a year), use the “Forgot Password” function. It is much better now than it used to be.

Nolan’s Tip: Ensure your security contact details (cellphone and email) are up to date. SARS uses One Time Pins (OTPs) for everything. If they have your old number, you are stuck.

Step 3: The “Wizard” (The Most Important Step)

Once you are in, click on “Returns Issued” and select “Personal Income Tax (ITR12).” When you open the return, the first thing you see is not the form itself, but a questionnaire called The Wizard.

This is where 90% of mistakes happen. The Wizard asks you questions to build your tax form.

• Question: “Did you make contributions to a medical scheme?” -> If you say No, the section for medical aid disappears from your form, and you lose your tax credits.
• Question: “Do you want to claim travel expenses?” -> If you don’t tick Yes, you can’t add your logbook later.

Take your time here. Answer every question truthfully. If you are unsure, it is better to tick “Yes” and leave the section blank later than to tick “No” and lose the opportunity to claim.

Step 4: Verifying the Pre-Populated Data

SARS is smart. When you open your ITR12 form, a lot of the data will already be there in pink/purple blocks. This is data pulled directly from your employer and bank.

• Check your IRP5 details: Does the gross income match the PDF your HR sent you?
• Check your Medical Aid: Does the number of dependents match?

You usually cannot change these “pink” fields manually. If they are wrong, you have to ask your employer or bank to resubmit the data to SARS. Do not just file it if it’s wrong!

Step 5: Adding Your Deductions

This is the part where filing your tax return becomes rewarding. This is where you tell SARS about the money you spent that should lower your tax bill.

• Retirement Annuities: Enter the total contributions from your certificate.
• Medical Expenses: There is a section for “out-of-pocket” expenses. This refers to qualifying medical costs you paid that your Medical Aid did not cover. Keep your receipts!
• Home Office Expenses: Be very careful here. Since COVID, everyone wants to claim this. You can only claim if you have a dedicated room used exclusively for work. The dining room table does not count. SARS audits this aggressively.

Step 6: The Calculation (The Moment of Truth)

At the top of the eFiling page, there is a button that says “Calculate”. Click it. It will generate a simulated assessment.

• Green Amount: “Due to You.” Congratulations! SARS owes you money.
• Red Amount: “Due by You.” You owe SARS money.

If you owe money, don’t panic. Check your inputs. Did you forget your RA? Did you double-count income? If the numbers are correct and you owe, it usually means your employer didn’t deduct enough PAYE, or you earned extra income (like freelancing) that wasn’t taxed.

Step 7: Submit and Verification

Once you are happy, click “Submit”. Immediately after submitting, look at your “Correspondence” dashboard.

• IT34: This is your official assessment.
• Verification Letter: Sometimes, SARS will issue a letter asking for “Verification of Supporting Documents.”

Do not freak out. A verification is not a full-blown criminal investigation. It just means the computer flagged something (maybe your medical expenses were high) and a human wants to see the receipts. Scan your documents and upload them via the eFiling portal immediately. The sooner you upload, the sooner they release your refund.

Who Actually Needs to File?

There is a myth that if you earn under R500,000, you don’t need to file. While SARS does issue exemptions for employees earning under R500k with one employer and no other deductions, I—Nolan—recommend you file anyway if:

1. You have a Retirement Annuity (you won’t get your refund if you don’t file).
2. You have Medical Aid (you might be due a credit).
3. You want a “Tax Clearance Certificate” or “Good Standing” status in the future for a loan or business contract.

It is better to be in the system and compliant than to assume you are exempt and find out 5 years later you have penalties for non-submission.

Common eFiling Mistakes to Avoid

• The “Zero” Return: Some people just open the return, click submit without checking, and hope for the best. If you had investment income, this is considered tax evasion.
• Dishonesty: Never inflate your expenses. SARS has third-party data. If you claim R50,000 in charity donations but they have no record of it, you are flagging yourself for an audit.
• Banking Details: Ensure the bank account loaded on eFiling is your account. SARS will not pay refunds into a spouse’s account or a third-party account.

Getting Help

If this guide on filing your tax return still feels overwhelming, there is no shame in getting help.

• TaxTim: An excellent digital tool that asks you simple chat-like questions and fills the eFiling form for you.
• Tax Practitioners: For complicated returns (rental income, freelance businesses), hire a registered practitioner. You can verify them on the SAIT (South African Institute of Taxation) website.

Value the Process

Tax is the price of admission for a functioning society (even if we complain about how it’s spent). By taking charge of the process, you remove the fear. You stop being a passive victim of the system and become an active manager of your finances.

So, log in. Check the wizard. Upload your docs. And hopefully, enjoy that “refund paid” SMS when it hits your phone.

FAQ: SARS eFiling Questions

What is the deadline for filing tax returns? For non-provisional taxpayers (regular employees), the season usually opens in July and closes in October. For provisional taxpayers (freelancers/business owners), it usually extends to January of the following year. Always check the SARS website for the exact dates each year.

How long does a refund take? If you are not selected for audit/verification, refunds often pay out within 72 hours. If you are selected for verification, it can take 21 working days after you have submitted your supporting documents.

What happens if I forget my eFiling password? Do not create a new profile! That creates a “duplicate merging” nightmare. Use the “Forgot Password” or “Forgot Username” link on the login page. You will need access to your email or cellphone to receive the OTP.