From overlooked allowances to long-term investment shifts, discover these practical steps to take home more each month while still paying your tax obligation.  

 Every year, tens of thousands of South Africans don’t realise they are handing SARS more money than they need to. Not because they’re generous, but because they’re simply not paying attention. Now that tax season is officially open, it’s time to stop blindly accepting your auto assessment and find out whether you could save more or, better yet, receive a larger refund. 

Tax avoidance isn’t a dirty word. It’s the legal, sanctioned practice of structuring your finances so you keep more of what you earn. Tax evasion is illegal; tax avoidance is just good admin. That difference matters more than you think, and once you understand it, you’ll wonder why nobody taught you this in school. 

The good news: most of the moves that save you real money aren’t complicated. They’re small, boring habits that just need to be done consistently. Think of it less like a tax hack and more like tax training. 

You’re not sprinting to a deadline in February. You’re building a routine that pays out over years. It’s a marathon, taking it one lap at a time.  

Start with your medical aid  

If, like many tax-paying South Africans, you’re paying your medical aid contributions personally, then you’re likely missing a trick. Running it through your company, where possible, means your employer handles the fringe benefit calculation and you get the tax credit applied monthly, rather than scrambling for it at filing time. Either way, you’re entitled to a fixed monthly rebate for yourself and each dependant you pay for. 

Here’s the part almost nobody does: keep every medical slip (especially the ones medical aid doesn’t fully cover). 

Not just the big hospital bills but the small stuff, too. Over-the-counter medication, prescription top-ups, and the physio session you paid cash for. Out-of-pocket medical expenses above a certain threshold of your income can be claimed as additional tax credits, and most people simply don’t have the paperwork when SARS asks for it. Start a shoebox. Or better yet, a folder on your phone. Photograph every slip the moment you get it. 

Let your retirement fund do double duty  

Contributions to a retirement annuity or pension fund are deductible up to 27.5% of your taxable income, capped annually. That’s not pocket change. If you contribute more than the cap in a given tax year, the excess carries forward to future tax years, so there’s no harm in contributing generously when you can afford to.

Use your tax-free savings account  

A tax-free savings account  (TFSA) lets your money grow, and be withdrawn, without tax on the growth. There’s an annual contribution limit and a lifetime cap, so it rewards people who start early and stay consistent rather than those who try to catch up in one lump sum. 

Give money away, strategically  

Donations to a registered public benefit organisation (with a valid Section 18A certificate) are deductible up to 10% of your taxable income. Give more than that in a good year and, again, the excess can carry forward. It’s one of the few tax moves that also makes you a better person, so there’s really no excuse if you can afford it. 

Keep a logbook  

If you drive for work, a proper logbook is the difference between a real deduction and an audit headache. Commission earners and anyone with a travel allowance should be recording business kilometres from day one, not reconstructing them from memory in June. 

Don’t trust the auto-assessment blindly  

SARS pre-fills your return using data fromyour employer, medical aid and investment providers. 

Convenient, until you realise that the data is often incomplete – leaving you owing them more. Accepting an auto-assessment without double checking can mean under-claiming deductions you’re entitled to or, worse, under-declaring income you forgot about. SARS can audit up to five years back. If they ask for proof and you don’t have it, they can reverse your deductions, adding penalties and interest. So do yourself a favour: double check the numbers and do it every year. 

Play the long game  

None of this is about finding a loophole before deadline day. It’s about building pro tax habits. Photographing slips, keeping records, logging kilometres, remembering that charity pays, checking your assessment properly – these habits compound over a working lifetime. 

Come July every year, the smartest guys are the ones paying the least tax and doing it all legally. So, remember to do the small things now, let them add up and reap the rewards later.   

Words: Warren Raaff
Photography: Gall/Getty Images