Tax season has officially started in South Africa, and many taxi and e-hailing drivers are unsure whether they need to file tax returns
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Tax season has officially commenced in South Africa, leaving many taxi and e-hailing drivers, particularly those working for Uber and Bolt, uncertain about their obligations to file tax returns, including traditional taxi drivers.
The tax season began on Monday, July 7 2025, with the South African Revenue Service (SARS) setting clear deadlines for different categories of taxpayers.
According to the revenue collector, individual taxpayers must file their returns by October 20, 2025. Provisional taxpayers, meanwhile, have until January 19, 2026, to submit.
In response to IOL's inquiries regarding the legal requirements for drivers in this sector to file tax returns, the revenue collector stated that the obligation depends on both the driver's income level and their classification as either an employee or self-employed.
"A driver as an employee who earns below the threshold is not required to register for tax. This also applies to the ‘owner driver’ who is regarded as self-employed; however, they may register to claim deductible expenses relating to their trade," SARS said.
The income tax threshold for the 2024/25 financial year is R95,750 for individuals under the age of 65. Anyone earning above that amount is required to register for tax and file a return.
SARS explained that ride-hailing drivers are classified differently depending on their relationship to the company or platform they work under.
"We must separate between an employee of an e-hailing licence holder and ‘owner driver’. Employees must be provided with IRP 5 whilst the owner driver is regarded as self-employed, and they must declare their income under the right source code which relates to business activities".
The correct source code for business income in the individual tax return (ITR12) is 2534. This code is used by self-employed individuals to declare income from sole proprietorships or other business activities.
On the issue of data sharing from companies such as Uber and Bolt, the revenue service did not confirm any specific reporting arrangement.
"SARS has access to various sources of data, and this is used for targeted compliance activities".
In short, drivers who earn above the threshold of R95,750 are legally required to file tax returns, whether they are employed or self-employed. Those who earn less are not required to register, but owner-drivers may still choose to do so to claim expenses.