Tax Returns: A Guide to the 2025 Tax Season

Gerrit Weideman • July 1, 2025

Tax returns are a vital part of our financial obligations as citizens. Every year, taxpayers are required to submit their tax returns to the South African Revenue Service (SARS) to ensure they are in compliance with tax laws. The upcoming 2025 tax season introduces several key updates that will impact both individuals and provisional taxpayers. In this guide, we will explore the important dates, changes, and what to expect from the filing process.

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Key Dates for the 2025 Tax Season

The 2025 Filing Season for personal income tax opens on 7 July 2025. SARS has set the following dates for different taxpayer groups:

  • Auto Assessment Notices: 7 July 2025 to 20 July 2025
  • Individual Taxpayers: 21 July 2025 to 20 October 2025
  • Provisional Taxpayers: 21 July 2025 to 19 January 2026
  • Trusts: 19 September 2025 to 19 January 2026

It is crucial for taxpayers to be aware of these dates to ensure they submit their tax returns on time and avoid potential penalties.

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Updates to the Tax Return Process

  • Certain Provisional Taxpayers Can Participate in Auto Assessment

    For the 2025 Tax Season, SARS will identify eligible provisional taxpayers and invite them to express their interest to receive an Auto Assessment. Eligible and interested provisional taxpayers will be included in the Auto Assessment population.

  • Section 6quat

    With effect from 1 March 2025, section 6quat of the Income Tax Act (the ITA) has been amended for taxpayers to fully use foreign tax credits for the taxes paid on capital gains in the foreign jurisdiction to the same extent in relation to the taxes paid in South Africa on the same gains.

    From the 2025 tax year, SARS will maintain any unused foreign tax credits to be carried forward automatically in the subsequent years of assessment, up to six years.

  • Section 11(nA) and 11(nB)

    With effect from 1 March 2025, employers must report sections 11(nA) and 11(nB) of the ITA details on the IRP5/IT3(a) certificate. These changes will affect the ITR12 tax return so that section 11(nA) source code 4042 will be reflected on the IRP5/IT3(a) tax certificate, and a new source code 4058 relating to section 11(nB) will be reflected in the “Other Deduction” field.

  • Definition of “Provisional Taxpayer” in Paragraph 1 of the Fourth Schedule

    With effect from 1 March 2025, a labour broker who received an approved certificate of exemption will be included in the definition of provisional taxpayer. This means that these labour brokers must comply with provisional taxpayer requirements such as submitting IRP6 tax returns.


  • Section 12H Learnership Agreement

    The termination date for the Section 12H Learnership Agreement (as per the ITA) has been extended from 1 April 2024 to 31 March 2027.

  • Allowable Interest Expenses on Foreign Interest in Terms of Practice Note 31

    The "Allowable interest expenses incurred in the production of interest received" line item has been introduced within the "Foreign Interest" container of the ITR tax return. This aligns with Practice Note 31.



  • Backdated (Antedated) Salaries and Pensions

    New source codes 3623 and 3673 have been introduced to the ITR12 tax return for backdated (or antedated) salaries and pensions.



  • Section 10(1)(i) Interest Exemption

    To apply the Section 10(1)(i) exemption correctly, the executor will now be able to declare the "Interest Earned Date From" and "Interest Earned Date To" within the investment-income container on the deceased estate tax return, where such dates exceed the year of assessment during which the taxpayer passed away.

  • Exempt Local and Foreign Dividends

    Two new source codes have been introduced for local (source code 4306) and foreign (source code 4307) dividends, now placed within the non-taxable container on the ITR12 tax return.

  • Section 9H Change of Residence

    Starting from the 2025 tax year, RSA tax-resident and non-resident taxpayers will see a specific ITR12 and IRP6 tax-return type based on their registration status with SARS, as follows:


    ITR12

    • RSA tax residents will be presented with the resident wizard questionnaire.

    • Non-residents will be presented with the non-resident wizard questionnaire.

    • Taxpayers who ceased RSA tax residency during the year of assessment will be presented with both the resident and non-resident questionnaire.


    IRP6

    • RSA tax residents will be presented with the resident return.

    • Non-residents will be presented with the non-resident return.

    • Taxpayers who ceased RSA tax residency during the year of assessment will be presented with both the resident and non-resident return.

  • Trust Income Changes

    From the 2025 tax year, SARS will apply a 50% communal estate where income from a trust is declared, and the taxpayer is married in community of property.

  • Unused Balances (Section 11F, Section 18A, Section 20)

    SARS will print the following note on the ITA34 when unused balances are not automatically carried over to the subsequent year of assessment:


    SARS did not consider your carryover/brought forward amount(s) as the current return is under the verification review. SARS will initiate the amendment of the return to account for the carryover/brought forward amount once the verification case is finalised.


  • Enhancement of Banking Details

    To improve the user experience with the Registration, Amendments, and Verification Form (RAV01) and the ITR12 tax return, taxpayers will be presented with a list of their verified banking details available to SARS. Taxpayers will need to select this information when updating their bank-account details, rather than manually entering them.



  • Reinstatement of RSA Tax Residency

    The Registration, Amendments, and Verification Form (RAV01) will allow taxpayers who previously ceased being RSA tax residents to indicate the reinstated date on the “Reinstatement Date of RSA Tax Residency” line item.

Changes to the ITR12  Tax Return

The ITR12 tax return form has been updated for the 2025 tax season. Key updates include:

  1.  Provisional Taxpayer Changes: From 1 March 2025, labour brokers who receive an approved certificate of exemption will be considered provisional taxpayers. This means they must comply with provisional taxpayer requirements, including submitting IRP6 tax returns.

  2.  New Source Codes for Backdated Salaries and Pensions: For backdated (antedated) salaries and pensions, new source codes (3623 and 3673) have been introduced in the ITR12 tax return form.

Interest Exemption and Trust Income Changes: Changes to tax residency, trust income reporting, and section 10(1)(i) interest exemption will also impact your filing for 2025.

Filing Your Tax Return

It is essential for taxpayers to understand the updates to the ITR12 form and how they might affect the submission of their tax returns. Whether you are an individual taxpayer, provisional taxpayer, or trustee, ensure that your return is accurate, up-to-date, and submitted before the deadline.

SARS offers various tools to help taxpayers navigate the tax return process. With these tools, filing a tax return has become easier than ever. However, taxpayers should be diligent in ensuring all information is correct to avoid delays or complications.

The 2025 tax season brings several new updates to tax return procedures, including changes to provisional taxpayer requirements, new source codes, and adjustments for foreign tax credits. These changes are designed to streamline the process and offer greater flexibility for taxpayers.

Remember, meeting the filing deadlines is crucial. Ensure that you keep track of important dates and review any changes that may apply to your situation. By staying informed, you can avoid penalties and ensure that your tax returns are filed smoothly.

For more information or assistance with your tax return, contact Core Accountants and Tax today!

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Your Tax Deadlines for November 2025

By Gerrit Weideman • November 5, 2025
07 November – PAYE submissions and payments 25 November – VAT manual submissions and payments 27 November – Excise duty payments 28 November – VAT electronic submissions and payments, & CIT Provisional Tax payments where applicable.

How Your Payment Terms Could be Damaging Your Business

By Gerrit Weideman • November 5, 2025
“Beware of little expenses; a small leak will sink a great ship.” (Benjamin Franklin) Extending 30-, 60- or 90-day payment terms may seem like a simple trick to help your sales teams convert sales, smooth negotiations and boost customer service. What you may not recognise, though, is that those terms are not neutral commercial niceties – they are a form of credit. When your business supplies goods or services today and accepts payment weeks or months later, it has effectively provided an unsecured loan to the buyer. That “invisible loan” has measurable costs: higher working-capital needs, lost interest income, distorted pricing decisions and elevated credit risk. When you sell on extended terms, “accounts receivable” grows and cash on the balance sheet shrinks until the buyer pays. That increases days-sales-outstanding (DSO) and raises the working-capital requirement. If you borrow to cover the gap (common for seasonal businesses or those with tight margins) the interest paid on that borrowing is a direct cost of the terms you offered. Even when you don’t borrow, the opportunity cost remains: cash not received cannot be used to reduce debt, invest in higher-return projects, or fund inventory when demand spikes. Over time the cumulative burden of routinely extended terms reduces agility and margins. Unfortunately, many clients demand extended payment terms, and your competition may be prepared to accede to their wishes. So how do you ensure you keep the business without going out of business yourself? 1. Price the finance Treat longer payment terms as a priced service. Build a transparent financing fee into orders that use 60- or 90-day terms, or publish two price lists: a net price for immediate payment and a financed price for deferred settlement. Customers accept explicit fees more readily than hidden margin increases, and your finance team can model return on capital precisely. 2. Offer structured early-payment incentives Instead of unconditional long payment terms, offer predictable early-payment discounts or dynamic discounting tied to actual payment date. A 0.5–1.0% discount for payment within 7–10 days often costs less than the buyer’s short-term borrowing and converts receivables into near-cash for you. 3. Underwrite and limit credit formally Move from ad-hoc allowances to formal credit applications and limits. Require a minimum credit assessment for extended terms, set credit lines tied to payment performance, and review limits at set intervals. For new or higher-risk customers, insist on shorter terms or staged delivery until a track record is established. 4. Design payment terms as part of commercial deals Make terms a negotiation item linked to value. Trade extended terms for commitments: volume guarantees, longer contract terms, staged milestones, or partial upfront payment. Where applicable, split deals into an upfront deposit and a deferred balance tied to delivery or performance to reduce unsecured exposure. 5. Use technology and supply-chain finance options Make payment easier with accurate, timely electronic invoicing, one-click payment links, and multiple payment methods. For larger B2B (business-to-business) accounts, consider invoice finance or supply-chain finance platforms. They enable buyers to settle invoices early and suppliers to access cash immediately, typically with transparent and lower financing costs than traditional receivables. 6. Make the invisible visible It’s essential to stop treating DSO as a passive metric and make extended terms a line item in cash-flow forecasting. Your accountant (that’s us!) can help you report the cost of terms monthly: financing cost, incremental bad-debt risk, and the foregone investment return on delayed cash. We can also supply a short finance note quantifying the cost and proposed mitigation (discount, guarantee, deposit). The bottom line Payment terms are a commercial tool and a financial instrument. When finance and sales treat them differently, an invisible loan quietly accumulates. By following the steps outlined in this article you can make the loan visible and manageable. That shift preserves customer flexibility while protecting cash, margins and your company’s capacity to invest. If you need help structuring your payment terms, speak to us.

Time Is Money: 8 Timesaving Tips Every Business Leader Should Utilise

By Gerrit Weideman • November 5, 2025
“The key is not to prioritise what’s on your schedule, but to schedule your priorities.” (Stephen R. Covey, The 7 Habits of Highly Effective People) In business, it’s too easy for an entrepreneur or business leader to mistake being busy for being effective. Working long hours with back-to-back meetings can look like productivity – but without clarity and boundaries, the important work may not actually be getting done. According to a study conducted by McKinsey, 61% of senior executives believe that at least half of the time they spend making decisions is unproductive. So how can you stop this from happening to you? Time-saving strategies are an essential tool for sustainable modern leadership. Streamlining processes, delegating effectively, and embracing automation can transform your day. Done right, these tactics free up energy for strategic thinking, innovation, and decision-making – all of which can lead to greater growth in your business. Here are some evidence-based tips every business leader should employ to better utilise their time. 1. Prioritise ruthlessly One of the most effective ways to save time is by focusing only on tasks that deliver real impact. The Eisenhower Matrix (dividing tasks into urgent vs. important) remains a powerful tool. Many leaders fall into the trap of handling urgent but low-value work, rather than carving out time for strategic priorities. The fix? Review your to-do list daily and cut or delegate anything that doesn’t directly move the business forward. Treat your time as an investment portfolio and put more into the high-return opportunities. 2. Delegate with trust Effective delegation is a skill, not just because it frees up your time, but also because it empowers your team. Too many leaders hoard responsibilities out of habit or fear that standards won’t be met. But this can bottleneck workflows and burn time on details that others are capable of handling. You should be clearly defining expectations, providing resources, and then stepping back. By learning to fully trust your team you free yourself up for higher-level thinking and decision-making. Just as importantly, you give staff room to grow, in the process increasing employee engagement and retention. 3. The algorithm is your friend Everyone’s talking about AI these days, and with good reason. Technology can be a business leader’s greatest ally. From scheduling tools to delivering automated reporting, letting technology take care of the smaller tasks can strip hours of repetitive labour from your week. The upfront effort and cost of setting up automation pays dividends quickly. According to a Deloitte survey, businesses using automation in finance and operations reported time savings of between 60% and 80% in some high volume, transactional finance processes. As your accountant, we can help you adjust budgets to cater for tech upgrades and installations, and the adjusted workflows that will surely follow. Leaders who resist these tools risk drowning in avoidable admin. 4. Guard your calendar Your calendar is a reflection of your priorities. Yet many leaders allow it to be hijacked by endless meetings. A practical fix is to implement “meeting-free zones” (blocks of time reserved exclusively for deep work). Another technique is the “two-pizza rule” made famous by Jeff Bezos: never hold a meeting if it requires more than two pizzas to feed the attendees. Meetings with fewer staff and clear agendas reduce wasted time and force clarity. 5. Communicate your way These days, business leaders are blessed with communication options. Tools like project management platforms, shared documents, and messaging systems mean you can allow communication to happen without the need for meetings or real-time interruptions. Allowing people to react to incoming information when they have space in their day lowers wasted time and increases focus. This helps everyone in the business, including you, to get more done. 6. Build decision-making frameworks Your job as a business leader is essentially to make decisions. The longer it takes you to make a decision, the more momentum is impeded. Structured decision-making frameworks (such as weighted scoring models) can help you speed up evaluations, reduce second-guessing and come to conclusions faster. This doesn’t just save you time, it also keeps others on track. 7. Invest in personal efficiency Leadership productivity is also about discipline. By simply changing some of the habits you’ve developed over a lifetime, you could immediately become more efficient. For example, you could answer your emails and phone notifications in batches instead of interrupting work to answer them as the notification comes in. Introducing new habits and changing old ones will require daily diligence and repetition. Initially, it may seem draining, but over time you’ll find you are saving hours you can put to better use elsewhere. 8. Time as a strategic asset Leaders who learn to protect and optimise their schedules are the ones who build organisations that are sharper, faster, and more resilient. By prioritising ruthlessly, delegating effectively, automating smartly, and protecting your calendar, you can transform time from a constraint into a competitive advantage.
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