Introduction
Every year, thousands of South Africans eagerly await their tax refunds from SARS, only to disappointment when refund not receives in their bank account. If you’re one of them, don’t worry, it doesn’t always mean something went wrong.
In this 2025 guide, we’ll explain why you might not have received a tax refund, who actually qualifies for this, and how SARS calculates it, so you can understand better about your tax outcome and stay compliant.
How the South African Tax System Works
SARS (South African Revenue Service) collects a portion of your income as tax — regardless of how you earn it. The important thing is that you pay your fair share according to the official tax tables, which change every year.
The Basics:
- Your gross income is what your employer pays you.
- Your net income is what reaches your bank account after deductions like tax, medical aid, and retirement contributions.
- Employers withhold PAYE (Pay As You Earn) tax and pay it to SARS on your behalf.
SARS compares what was withheld during the year against what you actually should have paid according to your total income and deductions.
SARS’s Tax Year Cycle
The SARS tax year runs from 1 March to 28 or 29 February.
For example, the tax year 2025 covers income earned between 1 March 2024 and 28 February 2025.
Why Some People Get Tax Refunds (and Others Don’t)
A tax refund happens when you’ve paid more tax than owed during the year. SARS calculates this during your assessment.
If you didn’t receive a refund, it means :
- You paid the correct amount during the year.
- You might owe additional tax instead of getting money back.
Here are the most common scenarios that affect whether you get a refund:
1. You Worked Less Than 12 Months
If you only worked few months of the year, for example you started a job from mid year or did vacation work and your employer may have overpaid tax based on annual estimates.
When SARS recalculate your actual income for the shorter period, you could get a refund.
2. Change in Salary or Job
If your income changed during the year, either you received a promotion, demotion or changed employers. In this case your tax bracket may have shifted.
SARS adjusts your total tax for the year, which can result in :
- A refund (if you overpaid).
- A payable (if you underpaid).
3. Provisional Taxpayers
Freelancers and self employed with fluctuating income are considered provisional taxpayers.
Because their income isn’t stable, SARS requires them to file twice a year.
If your provisional payments exceeded your actual tax liability, you’ll get a refund.
If they were too low, you’ll owe SARS.
4. Rebates and Deductions
SARS offers tax rebates (reductions in the amount of tax payable) based on your age and status :
- Primary Rebate : For individuals under 65
- Secondary Rebate : For those aged 65 to 74
- Tertiary Rebate : For those 75 and older
Rebates, medical aid and retirement contributions can lower your tax payable, sometimes resulting in a refund.
Example : How SARS Calculates Refunds
Let’s simplify how a refund or payable is determined :
- Total tax paid during the year (via employer PAYE) = R50,000
- Tax you should have paid (based on total annual income) = R45,000
- Difference = R5,000 refund
On the other hand, for example you paid R45,000 but should have paid R50,000. You’ll owe SARS R5,000.
Why You Might Not Have Received a Refund
Here are the most likely reasons for no refund :
- Your employer deducted the exact correct amount of tax.
- You had no qualifying deductions (like medical aid or retirement annuities).
- You didn’t update your bank details on eFiling.
- SARS balance your refund against an old debt or outstanding return.
- Still SARS is reviewing your return (pending verification or audit).
Should You Be Worried ?
Not at all.
Not receiving a refund doesn’t mean you’ve done anything wrong, it means your tax was correctly calculated and balanced.
The key is to always aim to be tax compliant, not to “chase refunds.”
Never use unregistered agents who promise guaranteed refunds, this can lead to fraud charges and heavy penalties.
What To Do If You Think You Deserve a Refund
- Log in to SARS eFiling
Visit www.sarsefiling.co.za and check your latest ITA34 (Notice of Assessment). - Review the Assessment
Compare what SARS says you owe vs. what your employer withheld. - Submit Supporting Documents
Upload IRP5s, bank interest certificates, or medical aid proof, if SARS requests them. - File a Dispute (if needed)
If you disagree, file a Notice of Objection (NOO) within 30 business days.
Key Takeaway
A tax refund is not guaranteed, it simply means SARS collected more than necessary from you.
If your income, deductions, or rebates don’t create that surplus, you won’t get a refund and that’s perfectly normal.
Frequently Asked Questions (FAQ)
Q.1) Who qualifies for a tax refund in South Africa (2025) ?
Anyone who paid more tax than they owed during the tax year, typically new employees, people with fluctuating income, or those with qualifying deductions and rebates.
Q.2) Why didn’t I get a refund when others did ?
Your employer may have deducted the correct tax, leaving no overpayment to refund. Refunds depend on your personal income and deductions.
Q.3) How long does SARS take to pay a refund ?
If everything is verified, refunds are usually processed within 72 hours after assessment. If verification is required, it may take time.
Q.4) Can I still get a refund after filing late ?
Yes, but SARS may delay it or require additional verification.
Q.5) How do I check my refund status ?
Log into SARS eFiling → Go to “Returns History” → view your ITA34 notice for refund details or payment status.
Q.6) Can SARS reverse my refund later ?
Yes, if SARS finds discrepancies or errors later, they can issue an Additional Assessment to correct it.
Final Thoughts
Understanding how SARS calculate tax refunds can save you time, stress and help you spot errors early.
Always review your assessments, keep records of your IRP5s and deductions and aim for compliance first.
If you’re unsure, contact SARS directly at 0800 00 7277 or consult a registered tax practitioner.
