All individuals and companies that earn taxable money shall pay taxes to the South African Revenue Service (SARS). However, filing tax returns can be challenging since there are certain things you should know. For instance, if you pay too much tax than what you are required to do, you will be entitled to get what is known as a tax rebate. This article explains everything you want to know about the concept of tax rebates
How do Tax Rebates Work in South Africa?
When you pay too much tax, SARS will pay back your money, which is known as a tax rebate. This is one way of reducing your tax burden together with other exemptions you may qualify to get. SARS calculates the tax you should pay based on the money you earn and expenses you incur during the year. If you meet specific conditions that are considered in calculating taxes, your tax will be reduced.
When you get a rebate, your tax liability will be reduced, and you may not get the money. However, you will be paid back the excess tax if you have no credit. If you owe SARS some money, you will not get the rebate when it is applied. Instead, it will be used to offset the money you owe. Rebates are used as yardsticks to establish taxable thresholds. This jargon can be confusing to many people, so it is a good idea to enlist the services of a professional so they handle your tax returns.
How do I Claim the SARS Tax Rebate?
To claim your SARS tax rebate, request an eSTT refund first. You can do this by filling out Part A of the REV1600 form. Once you complete it, send it by email to Ibqueries@sars.gov.za. The following documents must accompany this form.
- Proof of payment- obtain a receipt from the eFiling website and print it.
- Certified copy of ID
- Write a letter to SARS requesting a refund, and make sure you sign it.
- Get an original bank statement or ABSA eStamped statement that is less than three months, or the internet/ATM generated statement. The statement must have your name, bank name, account type, account number, and branch code.
If your claim for a refund is denied, you will be notified, and you will also get the reas ons for the decision. If the refund is successful, it will be processed and paid into your bank account within a few days.
How Much is Tax Rebate in South Africa?
The tax year starts 1 March and ends 28/9 February the following year. We are in the 2025 tax year, which commenced on 1 March 2025 and ends on 29 February 2025. The following are the types of tax rebates available in South Africa.
- The primary rebate is R17,235 for all people
- The secondary rebate is R9,444 for taxpayers who are 65 years or above
- The tertiary rebate is R3,145 for taxpayers who are 75 years old or over
When Can I Expect My SARS Refund 2025?
When your SARS refund has been approved and processed, you can expect to get it in about 72 hours, which is equivalent to three days. Once SARS completes the assessment of your refund request, you should expect to get your money within the stipulated time. To pay quickly, you should ensure your banking details are correct. The refund should be more than R100 and should be paid through the banking system. Additionally, ensure you have no outstanding returns or debt since these can lead to denial of the payment. No audit or verification must be initiated on your tax account if you want to get your refund without issues.
Who Qualifies For Tax Returns?
People who qualify for tax returns belong to the income bracket of R500 000 or more. You should have one employer as your source of income during a specific tax year. If you get money from different sources, you will not be considered. Other sources of income that are not considered include business income, rental income, travel allowance, taxable interest, and fringe benefits.
You should not have allowable tax deductions you can claim, such as travel expenses, medical expenses, and retirement contributions. You will get an auto-assessment from SARS if you meet the above requirements. This is based on the data submitted by your employer to SARS. Information obtained from financial institutions, medical schemes, and retirement funds is used to generate the fund.
Once you accept the auto-assessment, you no longer have to file a return. However, check if all the details are correct. You will experience problems with your tax return if there is incorrect information. If you have additional income, you should declare it.
All South Africans who earn taxable income must pay taxes to SARS. However, you should understand all the concepts involved so that you do not end up with a credit or paying excessive tax to SARS. If you realize you have paid more than required, you can request a tax rebate. First, check the requirements to see if you qualify for a tax rebate before submitting your request.
