SARS has warned that it will intensify and deepen its existing administrative efforts to drive taxpayer compliance, deploying more data science and AI, and imposing significant legal and administrative costs on non-compliant taxpayers.
This means that in 2025, maintaining full tax compliance will be more crucial than ever. Your best shot at ensuring all the compliance requirement boxes are ticked continuously and efficiently is to rely on our friendly and professional expertise.
“Being tax compliant and ‘paying your fair share’ is not just good for you, but also contributes to the positive growth of our country’s economy which in turn benefits all South Africans.” (SARS)
Being tax-compliant is a legal requirement for all South Africans.
SARS says it will be unrelenting in driving voluntary compliance in pursuing the 2024/25 tax revenue target of R1,840.8 billion.
To expand the tax base, detect dishonest taxpayers, deal with tax avoidance, expand debt collection, and improve service levels, SARS will:
- Deploy more data science and artificial intelligence (AI)
- Broaden the tax base via third-party data sources (banks, medical schemes, fund administrators etc.
- Use predictive modelling to ensure all taxpayers and traders are registered, filing returns and paying dues
- Build detection capability using machine learning models and AI
- Enforce Customs and Excise trade laws against the illicit economy
- Focus on dispute prevention and resolution.
Importantly, SARS is ready to act against those who willfully and defiantly ignore their legal obligations by misrepresenting their true economic status. SARS will impose significant legal and administrative costs on taxpayers and traders who deliberately fail to meet their obligations.
What does tax compliance look like?
Your company needs to:
- Be registered with SARS for all the tax types applicable to your company
- Have either merged or declared all registered tax reference numbers on eFiling
- Timeously submit all tax returns and other documentation requested
- Keep all registered particulars updated
- Pay all tax debt on time, or timeously secure a payment arrangement or suspension of payment
- Deregister the business if it is liquidated or closed.
Remember that your tax compliance status is not static: it changes according to your continued compliance with tax requirements month after month. Also remember that SARS can impose both monetary and criminal sanctions to enforce compliance. This is a significant business risk, because the burden of proof, should a taxpayer disagree with a decision taken by SARS, lies with the taxpayer. In the event that the taxpayer fails to argue their case successfully, they may find themselves in a position where penalties are suffered even if the error was unintentional or administrative in nature.
Benefit from the advantages of tax compliance
When you comply with your tax obligations, you give your business some compelling advantages.
- Eliminate the costs of non-compliance, like penalties, interest, and additional accounting and admin fees.
- Avoid the risk of criminal offences, which may result in a fine, imprisonment or both. Common offences include not registering for a tax type, or simply not submitting tax returns.
- Proof of tax compliance is considered an indicator of good company management and legal good standing.
- Good standing tax clearance certificates are often required for tender applications, bidding processes or prequalification as a supplier. They can also be needed to receive payment, or for foreign investment allowances.
- Compliance enables companies to gain the confidence of clients, stakeholders and investors; take advantage of business opportunities; and prevent reputational damage.
Help is at hand
Now more than ever before, professional assistance is the best way to consistently meet all the tax compliance requirements across all the relevant tax types over the tax year, and in an always-changing tax landscape.
SARS itself recommends “employing an accountant, tax practitioner, or other tax professional to complete returns, or from whom to obtain advice before completing a return with entries that are not understood or adopting a position with tax implications” to ensure you have taken “reasonable care” when it comes to your tax affairs.
We are well-versed in the requirements and deadlines of the various tax types and we’re also on top of the latest rules and processes. In a nutshell: we have the tax expertise to ensure you remain tax compliant all through 2025.
Frequently Asked Questions
What types of tax compliance help does SC Audit offer?
SC Audit and the Schoemans Group offer guidance on company tax returns, provisional tax, VAT, PAYE, and tax planning. The team helps businesses understand their tax obligations, prepare accurate returns, and stay compliant with SARS requirements throughout the year.
What is provisional tax and who needs to pay it?
Provisional tax is a system where taxpayers pay tax in two installments during the year of assessment rather than a lump sum after year-end. It applies to taxpayers earning income not covered by PAYE, including business owners, freelancers, and companies with taxable income above the threshold.
How can businesses avoid common tax compliance mistakes?
Common mistakes include incorrect VAT classifications, missed filing deadlines, under-declared income, and inadequate record keeping. Working with a tax professional, maintaining organised records, and staying informed about legislative changes helps businesses avoid costly errors.
What tax deadlines should South African businesses track in 2025?
Key deadlines include monthly VAT returns, PAYE submissions, the upcoming filing season for annual returns, and provisional tax payment dates. The specific dates depend on your business structure, turnover, and registration type. SC Audit can provide a personalised deadline calendar.
How can SC Audit help my business stay tax compliant?
SC Audit offers practical tax compliance support including return preparation and review, deadline management, SARS correspondence assistance, and proactive tax planning. The team helps businesses navigate South Africa’s complex tax landscape with confidence and peace of mind.
SC Audit is part of the Schoemans Group that includes Schoemans – Chartered Accountants in Cape Town and Acrede – Quality Auditing and Tax Consulting.