Do I Need to Register for Tax in South Africa?

When you start your first job, there is so much new information coming at you that it can quickly feel overwhelming. One of the things that often causes confusion is whether you need to register for income tax.

In the past, all employees had to register for income tax with SARS themselves in order to obtain a tax number. This meant completing a registration form and submitting it in person at a SARS branch, together with various supporting documents. For someone straight out of school or university, this could feel like a daunting task.

Fortunately, since the introduction of eFiling and more streamlined digital processes, things have become much easier.

Why Has SARS Changed the Tax Registration Process?

Over the last few years, the process has changed again — and for a very important reason. SARS identified a “blind spot” in the system. In the past, individuals could work for multiple employers and earn below the tax threshold with each employer. In addition, some employers did not always declare wages for these individuals under the guise of “casual work”.

As a result, SARS had no way of identifying that, when all this income was combined, the individual was in fact earning above the tax threshold and should have been paying tax.

To address this, SARS has gradually introduced measures to close this gap.

How SARS Uses EasyFile and Payroll to Track Income

One of these measures is the use of EasyFile Employer, the software employers use to submit their interim and annual EMP501 reconciliations. When employers now declare employee income, they are also able to register employees for income tax at the same time. EasyFile can even retrieve existing tax numbers for employees who are already registered.

While this was not initially mandatory and could still be overridden, SARS has tightened the rules. From recent EMP501 reconciliation periods, SARS has started enforcing penalties and interest on submissions where employee tax numbers are missing.

SARS now requires that all staff — whether permanent or casual — be processed through the payroll system, declared to SARS, and linked to a valid tax number.

This allows SARS to see where an individual earns all their income and to determine correctly whether tax is payable. By shifting much of the responsibility to employers and introducing serious consequences for non-compliance, SARS is actively cracking down on undeclared income.

Who Must Register You for Tax — You or Your Employer?

So who needs to register you for tax — you or the employer?

That really depends on your specific situation. Some employers still expect you to provide proof of your tax number when you are appointed, which means you would need to go the manual registration route yourself. Others are happy to register their staff through EasyFile as part of their payroll process.

The important point at the end of the day is this: if you earn a salary or wages, you should have a tax number, and your employer should be declaring your income to SARS using that tax number.

How to Register for a SARS Tax Number

The manual registration process for individuals is still available, but it can be time-consuming and SARS strongly encourages digital registration. Here are the main options available:

• eFiling: Register on the SARS eFiling website and you will be automatically issued with a tax number.
• SARS Online Query System (SOQS): Submit a registration request through the SARS website.
• SARS MobiApp: Register using the SARS smartphone app.
• WhatsApp: Chat with SARS on 0800 11 7277 to start the process.
• Employer: If you are employed, your employer can register you for income tax via their payroll and EasyFile system.

Get Professional Help With Your SARS Registration

At Olora Accounting, we help our clients make informed and confident decisions. If you are unsure which option is best for your situation, please reach out to us — we would love to help you get it done.