By Chris Herbst, Chartered Business Accountant in Practice (CBAP) with CIBA, General Tax Practitioner (GTP) with SAIT, Stellenbosch University. Team registered with SAIT, SAIPA and CIBA.
Many people open a tax free savings account, forget about it, and only notice it again when an ITR12 opens on eFiling with a "Tax Free Investments" section already completed. This guide explains what the IT3(s) certificate is, who issues it, which source codes it carries, how SARS uses it to test the contribution limits, how to view it on eFiling and what to do when it is wrong. For the basics of how the account itself works, read our guide to tax-free savings accounts in South Africa. For the certificate your bank issues on ordinary interest, see our IT3(b) certificate guide.
What Is an IT3(s) Certificate?
An IT3(s) is the tax free investment certificate a service provider issues to each account holder once a year. The SARS tax free investments page states that service providers give SARS the total contributions, withdrawals, transfers and returns on investment for each account, and give the taxpayer the same information by issuing an IT3(s) Tax Free Investment certificate annually.
What does the "s" in IT3(s) stand for?
The letter separates the certificate types in SARS's IT3 family. The SARS Business Requirements Specification for IT3 Data Submission (version 4.0.0D-10) covers IT3(b), IT3(c), IT3(d), IT3(e) and IT3(s) in one document, and section 4.2.5 assigns the IT3(s) to tax free investment accounts.
Is the IT3(s) the same as an IT3(b)?
No. An IT3(b) reports taxable investment income such as interest on an ordinary savings account. An IT3(s) reports activity on a tax free investment, where the returns are exempt. The BRS states that gains and losses arising from tax free investments are not reported on the IT3(c) either; the IT3(s) is used for them.
Do I get an IT3(s) if I made no contributions this year?
Yes. Section 4.2.5 of the IT3 BRS states that tax free investment reporting is required as long as the account is open, even if no new contributions were made in the reporting period.
Which Law Makes Tax Free Investment Returns Exempt?
Section 12T of the Income Tax Act 58 of 1962 exempts the returns. The SARS Comprehensive Guide to the ITR12 (IT-AE-36-G05, revision 40) states that section 12T came into operation on 1 March 2015 as an incentive to encourage household savings.
Which taxes does section 12T exempt?
The ITR12 guide states that amounts received by or accrued to a natural person in respect of a tax free investment are exempt from normal tax on interest and share trading profits, from dividends tax, and that capital gains and losses on disposal are disregarded. The SARS tax free investments page summarises it as no income tax, dividends tax or capital gains tax on the returns.
Which accounts qualify as tax free investments?
Only approved products offered by designated providers. SARS lists examples such as fixed deposits, unit trusts, certain endowment policies issued by long-term insurers, linked investment products and exchange traded funds classified as collective investment schemes. SARS also states that these accounts cannot be used as transactional accounts, so debit orders and ATM withdrawals are not possible from them.
What Does an IT3(s) Show?
An IT3(s) shows the institution, the account or policy number, and amounts under separate source codes for contributions, transfers, withdrawals and each type of return. Appendix N of the IT3 BRS lists the IT3(s) source codes, and section 7.11 of the ITR12 guide uses the same codes on the return.
- 4219: What it shows: Contributions; Counts towards the limit?: Yes
- 4246: What it shows: Transfer in; Counts towards the limit?: No
- 4247: What it shows: Transfer out; Counts towards the limit?: No
- 4248: What it shows: Withdrawals; Counts towards the limit?: No
- 4239: What it shows: Net return, profit; Counts towards the limit?: No
- 4240: What it shows: Net return, loss; Counts towards the limit?: No
- 4241: What it shows: Interest; Counts towards the limit?: No
- 4242: What it shows: Dividends; Counts towards the limit?: No
- 4243: What it shows: Capital gain; Counts towards the limit?: No
- 4244: What it shows: Capital loss; Counts towards the limit?: No
- 4257: What it shows: Other, such as manufactured dividends; Counts towards the limit?: No
Why do returns not count towards the limit?
The ITR12 guide states that the annual and lifetime limits are not affected by the income or proceeds received from a tax free investment, because capitalised returns are not regarded as contributions. The SARS page gives the example of R36 000 invested and R5 000 of capitalised interest: the account holds R41 000, and only the R36 000 is a contribution.
What are the transaction types behind the codes?
Appendix O of the IT3 BRS defines four IT3(s) transaction types: 01 contribution, 02 transfer in, 03 transfer out and 04 withdrawal. Your provider reports each movement under one of these, and the totals become the amounts on your certificate.
How Does SARS Use the IT3(s) to Test the Contribution Limits?
SARS adds up the contributions (code 4219) reported across all your tax free investments for the year and compares the total with the annual and lifetime limits in section 12T. The SARS tax free investments page states that SARS does not administer these accounts but monitors the annual and lifetime limits and the penalties where they are exceeded.
What is the annual limit for the 2027 year of assessment?
R46 000. The SARS tax free investments page records the increase from R36 000, announced on 25 February 2026 with effect from 1 March 2026, and the ITR12 guide lists R46 000 from 1 March 2026. The limit applies across all your tax free investments together, and SARS states that any unused part of the annual limit is forfeited rather than carried forward.
What is the lifetime limit?
R500 000 per person. The SARS page states that total contributions can never exceed R500 000 per person over a lifetime.
What is the 40% charge on excess contributions?
The ITR12 guide states that 40% deemed tax is payable on the amount contributed above the annual limit, and 40% on contributions above R500 000 in aggregate, reduced by any deemed tax already paid under the annual limit. SARS states that the amount is added to the normal tax payable on your notice of assessment. In the SARS example for the 2027 year, R50 000 contributed against the R46 000 limit leaves R4 000 excess and R1 600 payable.
Does withdrawing and putting money back count twice?
Yes. The SARS page states that if you withdraw returns or capital and reinvest them in the same or another tax free investment, the reinvestment is a new contribution and counts against both limits. A transfer between providers is different, and is covered below.
How Do Transfers Between Tax Free Accounts Appear on the IT3(s)?
A transfer appears as a transfer out (code 4247) on the old provider's certificate and a transfer in (code 4246) on the new provider's certificate. The ITR12 guide states that transfers between tax free investments are admissible from 1 March 2018 and, in terms of section 12T(6), are not included when SARS tests whether the limits were exceeded.
Why does a transfer sometimes show as a contribution?
When the money leaves one account as a withdrawal and arrives at the other as a deposit, it is not a transfer in SARS's terms. The receiving provider reports it as a contribution under code 4219, and it counts against your limits. A transfer only keeps its status when the providers move it between themselves.
What should both certificates show?
The amount on the transfer out at the old provider and the transfer in at the new provider should agree. The ITR12 guide asks you to declare both amounts, so a mismatch between the two certificates is worth querying before you file.
Where Does the IT3(s) Appear on My ITR12?
It appears in the Tax Free Investments section of the ITR12. On the return wizard, the guide's question reads "Were there any transactions (contributions, transfers, withdrawals, income received/accrued) on any Tax Free Investments held by you during this year of assessment?", followed by the number of tax free investments.
Is the section prefilled?
Yes. The ITR12 guide states that from the 2020 year of assessment the number of tax free investments and the amounts are prepopulated with third-party data. The number cannot be changed to a lower figure, but it can be increased if you have more accounts to declare.
What do I complete for each account?
For each account the return asks for the institution, the investment type, the policy or client number, and the amounts under codes 4219, 4246, 4247, 4248, 4239, 4240, 4241, 4242, 4243, 4244 and 4257. If you hold more than ten tax free investments, the guide asks you to consolidate the extra amounts into the tenth institution's line.
Does the section appear for non-residents?
Yes, under a different name. The ITR12 guide states that from the 2025 year of assessment the section displays as "Tax Free Investments (TFI) For Non-Resident" when a taxpayer is classified as a non-resident.
Does the IT3(s) affect an auto-assessment?
Yes. The prefilled tax free investment data is part of the third-party data SARS uses when it issues an auto-assessment, so an excess contribution can appear as additional tax on that assessment. Our guide to the SARS auto-assessment explains how to accept it or file a corrected return.
How Do I View and Check My IT3(s) on eFiling?
Use the Third Party Data Certificate Search on eFiling. The SARS guide GEN-ENR-01-G09, How to View Tax Certificates or Third Party Data Files via eFiling sets out these steps:
- Log in to eFiling with your username and password.
- Open Third Party Data Certificate Search from the left-hand menu.
- Complete the Request Third Party Certificates form: select the appropriate certificate type and the tax year, then click Submit.
- Click Download Certificate to view the certificate SARS holds.
- Compare it with your provider's IT3(s) and with the Tax Free Investments section on your ITR12, code by code.
- Query any wrong item with the Query Reason list and the Query Certificate button at the bottom of the certificate, and contact the provider.
Who can view the certificate?
The G09 guide states that an individual with an eFiling profile and an activated tax type can view it, and so can a registered tax practitioner with a confirmed status or delegated rights, where the tax type is on the taxpayer's portfolio.
What do I need beside the certificate?
Your own statements for each tax free account, showing deposits, transfers and withdrawals with dates. Our checklist of documents needed to file your tax return covers the other certificates that sit beside the IT3(s).
What If My IT3(s) Is Wrong?
Ask the provider to correct the data and resubmit it to SARS. The ITR12 guide states that if the prepopulated tax free investment information is incorrect, you must contact the third party, for example your bank, to rectify and resend the correct data to SARS.
Can I edit the amounts on the ITR12 myself?
The guide places the correction with the provider. Editing a prefilled amount without the provider's corrected data leaves the return disagreeing with what SARS holds, which is a common reason a return is selected for verification.
What if I have already been assessed?
Once the provider has resubmitted, you can file a corrected return through a request for correction where that option is open to you, or lodge an objection to the assessment within the prescribed period.
Common IT3(s) Mistakes on the ITR12
- Counting growth as contributions. Only code 4219 counts towards the limits. Interest, dividends and gains do not.
- Moving money between providers yourself. A withdrawal and redeposit is reported as a new contribution, not a transfer.
- Forgetting a dormant account. Providers report every open account, so a forgotten account still appears on the return.
- Adding the accounts of a child to your own. SARS states that a minor child uses his or her own annual and lifetime limits.
- Declaring tax free interest as local interest. Interest under code 4241 belongs in the Tax Free Investments section, not with taxable interest under code 4201 from an IT3(b).
- Deleting a prefilled account. The number of accounts cannot be lowered on the return; a wrong account is corrected by the provider.
Do You Need Help With Your IT3(s)?
We check every third-party certificate against the prefilled ITR12, including the tax free investment codes, before a return is filed. If an excess contribution has appeared on your assessment or a transfer has been reported as a contribution, our team works with your provider and SARS to have it corrected. See our personal tax pricing, read more in our personal tax guides, or contact us to book a call.
