A clear step-by-step guide to the deceased estate tax workflow in South Africa, including SARS processes, documents and compliance.
Once you understand what needs to be done, the next step is knowing how the process unfolds.
Deceased Estate Tax Workflow: Step-by-Step
Administering a deceased estate involves a structured series of steps, each with specific requirements, documentation and timelines. Understanding the process upfront can help prevent delays and ensure compliance with SARS requirements.
This guide provides a clear overview of the deceased estate tax workflow in South Africa.
1. Notify SARS of the Death
SARS must be formally notified of the death.
Required documents include:
- Certified copy of the death certificate
- Certified copy of the deceased’s ID
- Certified copy of the executor’s ID
- Letter of Executorship or Letter of Authority
- Executor contact details
- Proof of address
Result:
SARS updates the taxpayer profile and links the executor to the estate.
2. Register the Deceased Estate
Income must be split between:
- Income earned before death
- Income earned after death
A new deceased estate tax reference number must be registered via eFiling.
3. Submit Outstanding Tax Returns
All outstanding tax returns up to the date of death must be submitted.
This includes:
- Outstanding income tax returns
- Final income tax return
- Provisional tax, VAT and PAYE (if applicable)
Supporting documents may include:
- IRP5 or IT3(a) certificates
- Medical aid certificates
- Retirement annuity certificates
- Investment income statements
- Rental income schedules
- Financial statements (if a business is involved)
4. Capital Gains Tax (CGT)
At death, SARS treats assets as disposed of at market value. These deemed disposals may trigger Capital Gains Tax.
Common affected assets include:
- Property
- Investments
- Business interests
- Loan accounts
Required documents:
- Property valuations (REV246)
- Investment statements
- Business valuations
- Asset registers
Capital Gains Tax plays an important role in deceased estate administration, particularly where assets are deemed to be disposed of at market value.
Learn more about Capital Gains Tax in South Africa → Capital Gains Tax
5. Estate Duty (If Applicable)
Estate duty applies if the estate exceeds the relevant threshold.
Required submissions:
- Estate Duty return (REV267)
- Liquidation and Distribution Account
- Asset schedules
Supporting documents may include:
- Bank statements
- Property valuations
- Investment statements
- Life policies
- Liability confirmations
6. Estate Income (After Death)
In many cases, a deceased estate income tax reference number must be registered where the estate continues to generate income.
Income earned must be apportioned between:
- The period before death
- The period after death
This ensures accurate reporting in both the final individual tax return and the deceased estate tax return.
Examples of income include:
- Rental income
- Interest
- Dividends
- Business income
7. SARS Compliance & Tax Clearance
Before the estate can be distributed:
- All tax returns must be submitted
- All taxes must be paid
- Any SARS queries must be resolved
Final outcome:
SARS compliance confirmed
The estate can be distribute
Bringing It All Together
Each step plays a critical role in ensuring that the estate is administered correctly and without unnecessary delays.
While the process is structured, timelines may vary depending on the complexity of the estate and SARS turnaround times.
Learn how long a deceased estate takes in South Africa →https://olivierconsult.com/how-long-does-deceased-estate-take-south-africa/