Your ‘Happy Tax New Year’ starts now: What to do before 28 February deadline

As the end of February approaches and the end of the tax year looms, it is important to be proactive and make smart decisions to get the most for your financial future.

Daniel Sweigers, director of digital tax assistant TaxTim, explained that it is a common mistake to think that the tax season is solely from July to September.

The tax return you file later this year is based on your activity from 1 March 2025 to 28 February 2026.

The February deadline is crucial to avoid penalties on provisional tax returns for freelancers and those who earn additional income outside of their salary.  

RELATED: How to make sure you maximise any tax benefits before the end of Feb

“Any income you’ve earned, any deductions you’ve claimed, if you haven’t done it by the 28 February, that is unfortunately a lost opportunity.”

Sweigers added that the deadline is also important if you want to bring your tax obligation down for the year and increase your refund.

“One way of deducting your tax return or increasing your refund is to contribute to your retirement annuity. If you haven’t done that by 28 February, you lose that opportunity to bring down your tax obligation this year.” 

The deadline also applies to the contribution limit on tax-free savings accounts.

If you have maximised the annual R36,000 limit by 28 February, the contribution limit will be reset on 1 March.

RELATED: Why a Tax-Free Savings Account could be one of your smartest money moves

To listen to Sweigers in conversation with CapeTalk’s Clarence Ford, use the audio player below: