Tax season 2026 officially opens in July 2026, and many South Africans are asking: Do I need to submit a tax return to SARS?
The answer depends on your income, employment situation, investments, and whether you earned money from more than one source during the tax year. According to the Government Gazette published on 30 April 2026, certain individuals are legally required to file a tax return, while others may qualify for exemption.
Understanding these rules is essential to remain compliant with SARS, avoid penalties, and potentially secure a tax refund.
Tax Thresholds for 2026
You become taxable once your annual income exceeds:
- R95,750 if you are under 65
- R148,217 if you are between 65 and 74
- R165,689 if you are 75 or older
However, earning above these thresholds does not automatically mean you must submit a tax return.
Who May Not Need to File
You may qualify for exemption if all of the following apply:
- You earned less than R500,000 for the tax year
- Your income came from only one employer
- You worked for that employer for the full tax year
- PAYE was correctly deducted
- You earned no additional income
This exemption usually applies to straightforward salaried employees with no side income or investments.
Who Must File a Tax Return
You are required to submit a tax return if any of the following apply:
- Multiple Income Sources: Freelance income, consulting fees, rental income, commission, side business earnings, or salaries from more than one employer.
- Capital Gains or Foreign Income: Capital gains or losses above R40,000, foreign assets exceeding R250,000, or income from offshore investments.
- Business or Trade Activity: Self‑employment, contracting, online selling, or any side hustle.
- Provisional Taxpayer Status: Freelancers, consultants, commission earners, and business owners generally fall into this category.
- Deceased Estates: If you are administering an estate that earned taxable income.
Important SARS Deadlines for 2026
- Non‑provisional taxpayers: 23 October 2026
- Provisional taxpayers: 22 January 2027
- SARS auto‑assessments: Taxpayers must review them carefully. If the information is correct, no action is required. If errors are found, the auto‑assessment must be rejected and a corrected return submitted within 40 business days.
Penalties for Not Submitting a Tax Return
Failing to file a tax return can result in serious consequences:
- Administrative penalties: Monthly charges starting at R250 per outstanding return, escalating up to R16,000 per month depending on income level. These can continue for up to 35 months until the return is filed.
- Late payment penalties: A once‑off 10% penalty on unpaid tax, plus daily interest at the prescribed rate.
- Understatement penalties: Between 25% and 200% depending on whether the error was a mistake, negligence, or intentional tax evasion.
- Criminal sanctions: Persistent non‑submission can lead to prosecution under the Tax Administration Act.
Penalties compound quickly, making even small outstanding amounts grow into significant debt.
Why Filing Can Still Benefit You
Even if you qualify for exemption, submitting a return can help you:
- Claim medical aid tax credits
- Deduct retirement annuity contributions
- Correct SARS errors
- Claim business expenses
- Secure a tax refund
Many South Africans miss out on refunds simply because they assume they do not need to file.
Common Filing Mistakes to Avoid
- Forgetting to declare freelance or rental income
- Missing deadlines
- Accepting incorrect auto‑assessments
- Not keeping supporting documents
- Failing to claim legitimate deductions
Final Thoughts
With tax season opening in July 2026, it’s important to know whether you must file a return. While some salaried employees may qualify for exemption, many individuals are still legally required to submit due to additional income streams, investments, or business activities.
At RGR Chartered Accountants, we assist salaried employees, freelancers, commission earners, investors, and business owners with professional tax filing and SARS compliance services across South Africa. Tax season opens in July 2026—don’t risk penalties or miss out on refunds. Contact us today at roubert@rgrca.co.za or call 063 815 0994. You can also book a consultation, reach us instantly via WhatsApp, or use the Contact Us button on our website to get started.