Tax Record-Keeping in South Africa: What to Keep and For How Long

SARS can select any return for verification or audit within five years of filing. A claim that cannot be supported by documents is a claim that can be disallowed - regardless of how legitimate the underlying expense was (SARS: Record-Keeping, 2024). The five-year retention obligation is set out in section 29 of the Tax Administration Act 28 of 2011.

Key Takeaways

General rule: keep tax records for five years from the date you file the return they relate to.

Capital assets (property, shares): keep acquisition records until five years after you eventually dispose of the asset.

If SARS opens an audit or dispute: keep records until it is finally resolved, however long that takes.

Digital records (PDFs, photos) are acceptable if legible, complete, and retrievable on request.

The five-year rule

The general retention rule is five years from the date you submit the return to which the documents relate (Tax Administration Act 28 of 2011, section 29). If you file your 2024/2025 ITR12 on 31 October 2025, all supporting documents must be retained until at least 31 October 2030.

Two exceptions extend this period:

Open audit or dispute: if SARS has opened an audit or raised an assessment you are disputing, retain all relevant records until the matter is finally resolved - even if that takes longer than five years.
Capital assets: for property, shares, and other capital assets, keep all acquisition and improvement records until five years after the year in which you eventually dispose of the asset. A property bought in 2010 and sold in 2030 requires records to be kept until at least 2035.

What records to keep

Employment income:

IRP5 or IT3(a) from each employer for the year.
Payslips for the full year (useful if the IRP5 appears incorrect or is missing).

Medical expenses:

Annual medical scheme tax certificate (IT3(f)) from your scheme.
Receipts for all out-of-pocket medical expenses not covered by medical aid.
Doctor, specialist, hospital, dentist, and pharmacy invoices.

Retirement fund contributions:

Annual tax certificate from your retirement annuity or pension fund provider.
IRP5 showing employer and employee pension/provident fund contributions.
Documentation of any excess contributions carried forward.

Investment income:

IT3(b) from banks, brokers, and investment managers showing interest, dividends, and withholding tax.
Annual unit trust tax statements.
Brokerage trade confirmations for share transactions.

Rental income:

Signed lease agreements.
Bank statements showing rent received each month.
Invoices and proof of payment for all deductible expenses (repairs, rates, insurance, bond interest).

Business or freelance income:

Invoices issued and bank statements showing all receipts.
Invoices received and proof of payment for every deductible expense.
Asset registers for business equipment claimed under capital allowances.
Logbooks for vehicle expenses.

Home office:

Employer letter confirming the requirement to work from home (employees).
Floor plan or measurements showing the dedicated home office area.
Utility bills, rates, and lease or bond statements for the full year.

Donations:

Section 18A certificate from the qualifying public benefit organisation.

Capital assets:

Original purchase agreement and proof of total purchase price.
Transfer duty receipts and legal fees at purchase.
All improvement invoices and proof of payment.
Sale agreement, transfer documents, and disposal proceeds records.
Brokerage trade confirmations for all share purchases and sales.

Acceptable formats

SARS accepts records in paper or digital (electronic) form (SARS: Record-Keeping). For digital records:

Must be legible and complete when retrieved.
Must be storable in a format that can be printed or provided to SARS on request.
Must be backed up - a hard drive failure or phone loss is not a reason SARS will accept for missing documents.

Photographs of receipts are generally acceptable if they are clear and readable. Cloud storage (Google Drive, OneDrive, Dropbox) is a practical way to organise documents by tax year. Create a folder for each year and file records into it as they arrive - do not wait until filing season.

What happens if you cannot provide records

If SARS issues a verification request and you cannot produce the required documents (SARS: Dispute and Appeals):

The deduction or credit being queried may be disallowed.
SARS may raise an additional assessment for the additional tax, plus interest.
In serious cases involving negligence or misrepresentation, a penalty of up to 200% of the additional tax may be imposed.

The burden of proof rests with you. SARS is not obliged to accept a deduction without evidence.

Frequently Asked Questions

How long do I need to keep South African tax records?

Five years from the date you file the return. Exceptions: if SARS opens an audit or dispute, keep records until it is resolved. For capital assets, keep acquisition records until five years after the year of disposal.

Are digital copies of tax documents acceptable to SARS?

Yes, provided they are legible, complete, and can be retrieved and printed on request. Photos of receipts are acceptable if clear. Cloud storage is practical for organising records by year. A hard drive failure is not accepted as a reason for missing records.

What happens if I cannot provide documents during a SARS verification?

SARS may disallow the queried deduction or credit, resulting in additional tax and potentially penalties. In serious cases, a 200% penalty applies. The obligation to keep records is yours - SARS is not required to accept a claim without supporting evidence.

Do I need to keep records for amounts SARS pre-populated on my return?

Yes. Pre-populated figures come from third-party submissions and can contain errors. Your own certificates (IRP5, medical scheme certificate, IT3(b)) let you verify the pre-populated data and correct errors. If you make a correction and SARS queries it, your document is the proof.

Sources

SARS: Record-Keeping Requirements - individual taxpayer obligations, acceptable formats, and retention periods
Tax Administration Act 28 of 2011, section 29 - the legislative basis for the five-year record retention obligation
SARS: Dispute and Appeals - what happens if records are missing during a verification or audit

This guide is for general educational purposes. SARS record-keeping requirements and verification procedures can change - verify current obligations with SARS or a qualified tax practitioner.