{"id":831212,"date":"2025-07-14T07:00:00","date_gmt":"2025-07-14T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=831212"},"modified":"2025-07-11T17:18:56","modified_gmt":"2025-07-11T15:18:56","slug":"how-south-africans-can-legally-pay-less-tax-to-sars","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/831212\/how-south-africans-can-legally-pay-less-tax-to-sars\/","title":{"rendered":"How South Africans can legally pay less tax to SARS"},"content":{"rendered":"\n

There are several ways in which South Africans can make sure that they\u2019re paying as little tax as legally possible. <\/p>\n\n\n\n

This is according to Roxanna Naidoo, Head of Global Strategy at Latita Africa, who said<\/a><\/strong> many South Africans don\u2019t realise just how much tax they could legally save.<\/p>\n\n\n\n

According to Naidoo, understanding the difference between tax avoidance and tax evasion is key. \u201cThere\u2019s always the discussion of the fine line between tax avoidance versus tax evasion,\u201d she said. <\/p>\n\n\n\n

\u201cI\u2019m a very strong advocate for tax avoidance, using legal strategies to optimise your tax incentives.\u201d<\/p>\n\n\n\n

Naidoo emphasised that many South Africans miss out on legitimate deductions and reliefs, especially during tax season.\u00a0<\/p>\n\n\n\n

One area of concern is SARS\u2019 auto-assessments. \u201cAn auto-assessment is simply a SARS prefilled version of your tax return,\u201d she explained. <\/p>\n\n\n\n

\u201cIt\u2019s based on third-party information from your employer, medical aid, or investment providers, but that data isn\u2019t always complete.\u201d <\/p>\n\n\n\n

She warned that accepting an assessment at face value could result in under-declaring income or missing deductions for expenses like retirement contributions or business costs. <\/p>\n\n\n\n

\u201cIf SARS audits you later, and they can do this up to five years down the line, they\u2019ll ask for supporting documents. If you don\u2019t have them, SARS can reverse deductions and add penalties and interest,\u201d she said. <\/p>\n\n\n\n

She noted that it\u2019s clear that the South African fiscus needs money, in a country where only 7.4 million (12%) of the population of 64 million pay personal income tax, while 28 million (44%) rely on social grants.<\/p>\n\n\n\n

Given this, Naidoo prefers to highlight the positives so taxpayers understand how to use SA\u2019s tax mechanisms for their personal benefit. <\/p>\n\n\n\n

\u201cWhether you have an accountant, a tax practitioner or file your own tax return, look out for the following points to legally reduce what you owe SARS, maximise refunds, and combat tax debt in 2025,\u201d said Naidoo.<\/p>\n\n\n\n

How to reduce your tax bill <\/h2>\n\n\n
\n
\"\"<\/a>
Roxanna Naidoo, Head of Global Strategy at Latita Africa<\/em><\/figcaption><\/figure><\/div>\n\n\n

Naidoo outlined several strategies that many taxpayers overlook when paying less tax legally. \u201cWe all know about retirement annuity contributions, which are deductible up to a certain limit,\u201d she said.<\/p>\n\n\n\n

\u201cMedical contributions are also commonly used, but people forget about out-of-pocket medical expenses,<\/strong> which can qualify for medical tax credits.\u201d\u00a0<\/p>\n\n\n\n

She also noted that if you earn commission or travel for work, you may be able to claim business travel expenses<\/strong>, again, provided you keep receipts and proper documentation.<\/p>\n\n\n\n

Another important area is home office deductions<\/strong>, especially in the post-COVID world, where many people work remotely.\u00a0<\/p>\n\n\n\n

\u201cIf you’re working from home, part of your home office expenses could be deductible, but only under specific conditions,\u201d she cautioned. <\/p>\n\n\n\n

\u201cThe key is understanding what you qualify for and keeping excellent records. Don\u2019t assume SARS will calculate everything for you; you must submit those figures and documents yourself.\u201d<\/p>\n\n\n\n

For those with more complex tax affairs, Naidoo advised seeking professional help.<\/p>\n\n\n\n

\u201cIf you have multiple income streams or technical tax matters, a tax practitioner can help you spot opportunities you might miss,\u201d she said.\u00a0<\/p>\n\n\n\n

\u201cBut if you\u2019re just an individual with one income, it\u2019s not really necessary.\u201d Naidoo also commented on SARS\u2019 increasing use of automation and artificial intelligence in its processes. <\/p>\n\n\n\n

\u201cA person doesn\u2019t do auto-assessments; they rely on AI and pre-filled data,\u201d she explained. The new SARS Express tool is a big part of this. For those feeling overwhelmed, Naidoo offered practical advice.\u00a0<\/p>\n\n\n\n

\u201cNever just accept what\u2019s in the auto-assessment. Always double-check it. And if you find something\u2019s wrong, you can request a correction on SARS eFiling and submit an amended return.\u201d<\/p>\n\n\n\n

If you\u2019re already in trouble with SARS and facing a tax debt, Naidoo urged taxpayers not to panic, but to act quickly. <\/p>\n\n\n\n

\u201cSARS isn\u2019t unfair. There are several mechanisms to assist taxpayers in financial distress,\u201d she said.\u00a0<\/p>\n\n\n\n

\u201cThe first is a tax debt compromise, where SARS may write off a portion of the debt if you can show you\u2019re unable to pay and that it\u2019s in the best interest of the fiscus. <\/p>\n\n\n\n

The second is a suspension of payment; if you\u2019re disputing an assessment, you can ask SARS to temporarily suspend payment until it\u2019s resolved. <\/p>\n\n\n\n

The third is a deferred payment arrangement, where SARS allows you to pay in instalments based on your financial circumstances.\u201d<\/p>\n\n\n\n

She said all these options require formal applications with supporting documents and stressed the importance of responding promptly. <\/p>\n\n\n\n

\u201cDon\u2019t ignore SARS\u2019 letters of demand. The sooner you act, the more legal options you have.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

There are several ways in which South Africans can make sure that they\u2019re paying as little tax as legally possible.\u00a0<\/p>\n","protected":false},"author":92,"featured_media":782514,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[19798,853,19922],"class_list":["post-831212","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-latita-africa","tag-south-africa","tag-south-african-revenue-service-sars"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/831212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=831212"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/831212\/revisions"}],"predecessor-version":[{"id":831269,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/831212\/revisions\/831269"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/782514"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=831212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=831212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=831212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}