If you’ve paid more tax than you were supposed to during the financial year, you might be due for a refund from the South African Revenue Service (SARS). This usually happens when your total tax paid—through PAYE (Pay-As-You-Earn), provisional payments, or automatic deductions—is higher than what you legally owe.
Below are common situations where South African taxpayers may qualify for a SARS tax return:
1. Medical Expenses Not Covered by Medical Aid
If you’ve had out-of-pocket medical costs that your medical scheme didn’t pay for, SARS may allow you to deduct these expenses from your taxable income. These deductions can lower the amount of tax you owe, and if you’ve already paid more, you could qualify for a refund.
2. Retirement Fund Contributions
Contributions to a registered pension, provident, or retirement annuity fund are tax-deductible up to a set limit. If your total retirement contributions exceed your taxable income or reduce it significantly, you may be entitled to a SARS refund.
3. Tax Deductions and Rebates
SARS offers several deductions and rebates that can reduce your overall tax liability. These may include:
- Travel expenses for work (if you receive a travel allowance)
- Donations to approved public benefit organisations (PBOs)
- Home office expenses (for those who qualify under SARS rules)
If these reduce your taxable income enough, and you’ve already paid more tax than necessary, you may be refunded the difference.
4. Business and Freelance Expenses
If you’re self-employed or running a small business, you can deduct valid business-related expenses from your income. Examples include:
- Equipment costs
- Business travel
- Office rental or home office use
- Marketing and advertising
These deductions may lower your taxable income, which can result in a lower final tax amount and a potential refund if you overpaid earlier in the year.
5. Overpayment of Provisional Tax
If you pay provisional tax based on income estimates and later file your return showing a lower actual income, you might have overpaid. In such cases, SARS can issue a refund once your final return is assessed.
Important Reminders
- Not everyone is automatically entitled to a refund. Eligibility depends on your personal tax situation, including income level, expenses, deductions, and the accuracy of your tax return.
- To find out if you’re due a refund, you can file your return using the SARS eFiling system, consult the SARS website, or speak with a registered tax practitioner.
- Always keep supporting documents for any claims made, such as receipts for medical expenses or confirmation of donations.
Also Read: How do I claim tax back from SARS?
By understanding what qualifies you for a SARS refund and keeping proper records throughout the year, you can improve your chances of getting money back when tax season arrives.