SARS Record Keeping Requirements (2026)
Proper record keeping is essential for tax compliance and makes filing returns easier. Understanding what records to keep, how long to keep them, and how to organize them helps you maintain compliance and respond to SARS requests. This comprehensive guide covers everything you need to know about SARS record keeping requirements for 2026.
Why Keep Records?
Importance of Record Keeping
Compliance:
- Legal requirement
- Required by SARS
- Support tax returns
- Evidence for claims
Benefits:
- Easier return filing
- Support deductions
- Respond to queries
- Avoid penalties
- Peace of mind
What Records to Keep
Income Records
Employment Income:
- IRP5 certificates
- Payslips
- Employment contracts
- Other income documents
Other Income:
- Bank statements
- Investment statements
- Rental income records
- Business income records
- Other income sources
Expense Records
Deductions:
- Medical receipts
- Retirement fund certificates
- Donation certificates
- Travel logbooks
- Home office documentation
- Other expense receipts
Business Expenses:
- Invoices and receipts
- Business expense records
- Travel expenses
- Other business costs
Tax Documents
Returns and Assessments:
- Tax returns filed
- Assessment notices
- Refund confirmations
- Payment receipts
- Correspondence with SARS
Other Tax Documents:
- Registration documents
- Tax certificates
- Statements of account
- Other tax-related documents
How Long to Keep Records
Retention Period
General Rule:
- Keep for 5 years
- After tax year ends
- From date of return
- Or longer if needed
Specific Periods:
- Tax returns: 5 years
- Supporting documents: 5 years
- Some records longer
- Check specific requirements
Important:
- SARS can audit up to 5 years
- Keep records accessible
- Don't destroy too early
- Better to keep longer
Organization Methods
Physical Organization
Filing System:
- Organize by tax year
- Separate by category
- Use folders
- Label clearly
Categories:
- Income documents
- Expense receipts
- Tax returns
- Correspondence
- Other documents
Digital Organization
Electronic Storage:
- Scan documents
- Organize in folders
- Backup regularly
- Easy to access
Benefits:
- Saves space
- Easy to search
- Backup copies
- Convenient
Hybrid Approach
Combination:
- Keep originals
- Scan important documents
- Digital backup
- Physical and digital
Best Practices
Regular Maintenance
Tips:
- File documents regularly
- Don't let pile up
- Organize as you go
- Maintain system
Backup Important Documents
Protection:
- Keep copies
- Digital backups
- Safe storage
- Protect originals
Easy Access
Organization:
- Easy to find
- Well-labeled
- Logical system
- Quick retrieval
Common Record Keeping Scenarios
Scenario 1: Employment Income
What to Keep:
- IRP5 certificates
- Payslips
- Employment contracts
- Keep for 5 years
Scenario 2: Business Income
What to Keep:
- All invoices
- Bank statements
- Expense receipts
- Financial records
- Keep for 5 years
Scenario 3: Property Rental
What to Keep:
- Rental agreements
- Income records
- Expense receipts
- Maintenance records
- Keep for 5 years
Digital Record Keeping
Scanning Documents
Process:
- Scan important documents
- Save in organized folders
- Name files clearly
- Backup regularly
Benefits:
- Saves space
- Easy to search
- Multiple copies
- Convenient access
Cloud Storage
Options:
- Cloud backup
- Secure storage
- Access anywhere
- Automatic backup
Security:
- Use secure services
- Password protect
- Encrypt sensitive data
- Regular backups
Record Keeping for Specific Situations
Home Office Expenses
What to Keep:
- Floor plans
- Photos
- Expense receipts
- Calculations
- Supporting documents
Travel Expenses
What to Keep:
- Travel logbook
- Fuel receipts
- Maintenance invoices
- Other travel expenses
- Supporting documentation
Medical Expenses
What to Keep:
- Medical scheme certificates
- Medical receipts
- Proof of expenses
- Other medical documents
Consequences of Poor Record Keeping
Issues
Problems:
- Difficult to file returns
- Can't support deductions
- Problems with queries
- Potential penalties
- Compliance issues
Avoid:
- Keep proper records
- Organize systematically
- Maintain regularly
- Don't neglect
Frequently Asked Questions
How long must I keep tax records?
Generally 5 years after the tax year ends, but it's better to keep them longer.
Can I keep records digitally?
Yes, digital records are acceptable if they're accessible and can be produced for SARS if needed.
What if I lose important documents?
Try to reconstruct records where possible, contact sources for copies, and explain the situation to SARS if needed.
Do I need to keep original receipts?
Digital copies are usually acceptable, but keep originals for important documents if possible.
What records do I need for an audit?
All records supporting your tax return, including income documents, expense receipts, and calculations.
Can SARS request records older than 5 years?
Generally, SARS can audit returns up to 5 years old, but there may be exceptions in certain circumstances.
Conclusion
Proper record keeping is essential for tax compliance and makes managing your tax affairs much easier. By keeping all required records, organizing them systematically, and maintaining them for the required period, you can support your tax returns and respond to any SARS requests. Remember that good record keeping saves time and stress when filing returns and dealing with queries.
For assistance with record keeping or if you have questions about specific requirements, consult a qualified tax practitioner.
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