From the desk of the CEO

4 November 2025

Offering 30-, 60- or 90-day payment terms may seem like a customer-friendly sales tactic, but it essentially works as an unsecured loan to the buyer. This "invisible credit" carries significant financial implications:

     •    Increased working capital needs and higher credit risk

     •    Lost interest income and distorted pricing decisions

     •    Growth in accounts receivable and reduced cash reserves

     •    Higher days sales outstanding (DSO), straining liquidity

     •    If borrowing is needed to bridge the gap, interest costs become a direct expense

     •    Even without borrowing, opportunity costs arise from idle cash that could fund growth or reduce debt

Over time, routinely offering extended terms can erode financial agility and profitability.

Need help managing cash flow? See our business advisory services or contact us.

1. Contribute to a Retirement Annuity Fund. This is a great way to save for the future, and it also means you pay less tax every year. If you already contribute to your retirement, it may be worth contributing a little extra and saving some tax.

2. Contribute to a Tax Free Savings Account (TFSA). A TFSA lets you save up to R36 000 per year and grow your savings without paying tax on the growth. Any interest, dividends or capital gains earned in a TFSA are tax free, making it an effective way to save for your goals.

3. Donate to charity. You can claim up to 10% of your taxable income for the year by donating to a registered Public Benefit Organisation (PBO). The organisation must be a registered PBO and issue you with a valid section 18A certificate for you to claim. Check with us to confirm whether they are registered.

Want to plan your tax for the year? See our tax services or contact us.

After you have submitted your supporting documents to SARS, they have 21 working days to review them, provided all the required documents have been received. Once their review is complete, you will receive one of the following:
1. A request for additional documents
2. A Completion Letter
3. An Additional Assessment

Additional Documents Request
If SARS still requires documents from you, they will either email you directly with a specific request or send a letter via eFiling listing the additional information required.
In many cases, SARS does need a little more information. This must be sent to the email address in their letter or uploaded via eFiling.

Completion Letter
You will receive a Completion Letter if SARS is happy with your documents. This means SARS is not adjusting your Original Assessment. If you have a refund due, it should be paid out within 7 working days (provided you have no tax debt or outstanding returns from prior years). Similarly, if you owe tax per your Original Assessment, the amount you owe will remain unchanged.

Additional Assessment
If SARS issues an Additional Assessment, it means they have adjusted your Original Assessment after reviewing your documents. This can change the amount of tax you owe or the refund you receive. If you disagree with the adjustment, you may be able to lodge an objection, but strict time limits apply, so it is best to get advice quickly.

Need help with a SARS assessment? See our tax services or contact us.