The 2025 Filing Season for individuals in South Africa opened on 7 July 2025 with Auto-assessments
Photo by Gemini
Tax is not the most popular topic of conversation no matter which county in the world you live in, not just because it usually involves handing over large sums of money to government, but because it can also be extremely complicated to the ordinary man in the street.
South African Tax law states that foreigners living in the country for 183 days or more within one tax year will be considered temporary residents for tax purposes. Foreigners living here for a period of three years will be deemed full residents and be required to pay tax on all income, both generated overseas and in South Africa.
It is empirical to remember that even non- South African residents are taxed on their South African incomes, but South African residents are taxed on their worldwide income. As a foreigner living and working in South Africa, employees’ tax is deducted on a ‘pay-as-you-earn’ basis and paid by employers to the tax authorities monthly. For foreigners who are self-employed, you are required to file self-assessment by eFiling.
As responsible and law-abiding Ugandan person in South Africa, we should all do our civic duties by obeying the South African tax laws. Tax compliance helps document your presence in the country, it is a validation of your personal or business income and it is a critical determinant of you and/or your business credit worthiness.
See the extract below from the SARS website regarding 2025 tax filings for more information on filing your taxes.
2025 tax filing season in South Africa(SARS)
The 2025 Filing Season for individuals in South Africa opened on 7 July 2025 with Auto-assessments.
KEY DATES
Auto-assessments: 7 – 20 July 2025.
Non-provisional taxpayers (not auto- assessed): 21 July – 20 October 2025.
Provisional taxpayers: 21 July 2025 – 19 January 2026.
Trusts: 20 September 2025 – 19 January 2026.
Auto-assessments SARS will send out emails or SMSs notifying taxpayers of their auto-assessment from 7 July 2025.
Filing methods SARS encourages taxpayers to use digital channels, such as eFiling or the SARS MobiApp, to submit their returns.
BUSINESS ESSENTIALS:
Business Registration.
While documentation of income is relatively easy for people who are in paid employment, for people who are self-employed or are active entrepreneurs, it is not often easy.
Fortheseentrepreneurs,it couldbe beneficial to register as a business. Deciding on what, how and when to register is often a matter of choice. The process, however, is prescribed by the Companies and Intellectual Property Commission (CIPC).
For self-employed people, having a registered business name is essential for credibility and brand building. For tax purposes, it is good to be aware that the current income tax threshold is R95,750.00
and it helps to have a registered business name for income tax, value added tax, for insurance and credit profile purposes. Foreign nationals can register a business in South Africa with a valid passport. A South African physical address is required.
The process can be done online through the CIPC’s Bizportal or directly on the CIPC website. You’ll need to provide details about the company and its directors and pay the relevant fees.
In the next issue of “The Pearl of Africa”, the Business Essentials topic will be Banking and Credit Building.
Business Corner
by: Ms. N Lillian
