SARS Tax Refund Delays: 7 Reasons you haven’t been paid yet in 2025
others may still be wondering why their refunds have not yet arrived.
Image: Freepik
While some taxpayers are laughing all the way to the bank after receiving their SARS tax refunds within days, others may still be wondering why their refunds have not yet arrived.
IOL previously reported that the revenue service issued 5.8 million auto-assessments this year, with the majority of refunds processed within 72 hours. SARS has paid out around R10.6 billion in tax refunds.
SARS has also confirmed that, following the successful completion of the auto-assessment period, the filing period is now open for taxpayers who were not auto-assessed or who wish to update their tax returns.
Why your tax refund might be delayed
According to SARS, several factors could delay a refund, even if a return has been submitted:
- Verification of banking details: When your banking details have been identified for verification, the process can take up to 21 business days from the date all required supporting documents are received. Once the bank details validation process has been completed, the refund should be paid within 72 hours.
- Return selected for verification: If your Income Tax return is selected for verification, it may take up to 21 business days from the date all required supporting documents are received to conclude a verification, whereafter the refund should be paid within 72 hours.
- Multiple tax years under review: If you submitted returns for multiple years and they’re selected for verification, SARS may take up to 90 business days to finalise the process.
- Audit selection: If your return is selected for audit, it could take up to 90 business days from the date of receipt of all the required supporting documents in a complete and correct manner, unless alternative arrangements are communicated, whereafter the refund should be paid within 72 hours.
- Outstanding tax returns: If you have outstanding returns, the refund will not be paid until all outstanding tax returns have been submitted.
- Incorrect banking details: Refunds cannot be processed if banking details on file are incorrect or outdated.
- Outstanding tax debt: If you have outstanding debt on your account, the debt equalisation process may be initiated to deduct an amount from your refund and pay towards any outstanding tax debt before the release of any credit available thereafter.
IOL News
mthobisi.nozulela@iol.co.za