Tax season is around the corner, but the 2025 filing period might not look like what you’re used to. From policy shifts to updated SARS protocols, businesses and individuals alike are asking: What’s changing this year, and how do I stay compliant without the stress?
In this blog, we break down what’s different, what it means for you, and the steps you can take right now in order to stay compliant.
What’s New in the 2025 Tax Season?
Here are the major developments expected to shape this year’s tax season:
1. Two-Pot Retirement System Implementation
Effective September 2024, the Two-Pot Retirement System came into effect. For the first time, South Africans will be able to access part of their retirement funds early under strict conditions. This change could impact:
- Taxable income declarations
- Retirement fund contributions and withdrawals
- Tax planning strategies
If you made a withdrawal, expect SARS to require proper documentation, and potentially, a provisional tax adjustment.
2. Enhanced SARS Auto-Assessments
SARS is improving its AI-driven auto-assessment system. More individuals—especially salaried employees—may find pre-populated returns in their eFiling profiles.
While this sounds convenient, don’t just accept the auto-assessment without review. Mistakes happen, especially if:
- You have multiple income streams
- You qualify for deductions not reflected on the auto-assessment
- You’ve had capital gains or medical expenses
3. Beneficial Ownership Declarations
Although this primarily affects registered companies and trusts, SARS is tightening its cross-referencing with CIPC’s Beneficial Ownership database. If you’re a director, trustee, or have business interests, double-check your entity’s submissions to avoid administrative penalties.
4. Digital Integration: More Real-Time Reporting
More employers, medical aid providers, and investment houses are now required to report income and deductions in near real-time. This means:
- Less time to correct errors
- More scrutiny on discrepancies
- Immediate tax risk alerts
It’s critical to reconcile your IRP5, medical aid certificates, and IT3(b) statements before submitting.
What You Should Do About It
Knowing what’s coming is one thing—being prepared is another. Here’s your game plan:
1. Get Your Documents in Order Early
Start collecting:
- IRP5/IT3a from employers
- Medical aid tax certificates
- Retirement annuity and pension fund statements
- Travel logbooks (if applicable)
- Proof of deductible expenses
The earlier you start, the smoother it gets.
2. Speak to a Tax Professional
If you’re unsure how changes like the Two-Pot System or auto-assessments affect you, a quick consultation could save you money—and potential penalties.
3. Avoid Rushing the Deadline
SARS penalties are steep for incorrect or late submissions. Aim to file well before the deadline.
📘 Download Our Free 2025 Tax Guide Handbook
Want a comprehensive checklist, deduction cheat sheet, and guidance on how to navigate the 2025 tax changes?
Download the 2025 Tax Guide Handbook (PDF)
Recommended Reading:
Tax Season Stress? 5 Ways to Simplify Your Tax Return Process
Feeling overwhelmed already? Check out our practical tips to breeze through this tax season like a pro.
Read the Article Here
Final Thoughts
The 2025 tax season is bringing change—but that doesn’t mean it has to bring stress. With the right information and support, you can stay compliant, avoid penalties, and maybe even save more than you expect.
Need help with your return? Our expert team is just a click away.
