With the 2026 tax season approaching, many clients have been asking whether they really need to submit an annual income tax return this tax year.

Our answer remains the same: yes, you should still file.

Even if you believe you may not be required to submit, it's always safer to do so. If SARS later determines that you were required to submit a return and you did not do so, you could face administrative non-compliance penalties.

When SARS Says You Don't Need to File — And Why You Still Should
SARS provides certain criteria under which taxpayers may not be required to file. However, in practice, these situations often still warrant submission:

1. You earn less than R500,000 per year from one employer.

While this threshold may exclude you from mandatory filing, it assumes your income is not from multiple sources. If you have any additional income such as freelance work, side businesses, or investments, you should still submit a return to ensure you are tax compliant.

2. Your interest income is below the exemption threshold:

• Under 65 years: R23,800
• 65 years and older: R34,500

 Although this interest income may be tax-exempt, taxpayers earning investment income often have multiple income streams, such as:

• Salaries
• Pension or annuity income
• Rental income
• Foreign investment income

3. You received a single lump sum from a retirement fund.

This might seem like your only income but in most cases, lump sums arise from:

• Resignation
• Retrenchment
• Retirement

This usually means you earned other income during the tax year, which must be declared.

4. You are not a South African tax resident.

Even if you are no longer tax resident, you may still need to file a South African tax return if you earned South African-sourced income, disposed of certain South African assets, or SARS specifically requires a return.

Key 2026 Tax Season Dates

• Individual taxpayers: Filing closes on 23 October 2026
• Provisional taxpayers: Filing closes on 22 January 2027

Final Thoughts
Not everyone is legally required to file — but many taxpayers who think they are exempt are wrong. If you had one employer and straightforward income, SARS may not require a return. But if you had extra income, deductions to claim, investments, capital gains, rental income, foreign assets, freelance income, or an auto-assessment that is incomplete, you should not ignore filing season.

Filing your tax return, even when it may not seem necessary, is the safest way to:

• Avoid unexpected tax administrative penalties
• Ensure full compliance
• Keep your tax affairs up to date

When in doubt, submit your return. It's far easier to file proactively than to resolve issues later.