SARS and a Deceased Estate: How to Register, File Returns, and Get the DEC Letter

Tax does not stop at death. As executor of a South African estate, you assume personal liability for ensuring that all SARS obligations are met — including outstanding returns from years before the death, the final income tax return to the date of death, and estate duty on the estate itself. The Master of the High Court will refuse to close the estate file until SARS confirms in writing that everything is settled. That confirmation is called the Deceased Estate Compliance (DEC) letter, and obtaining it is often the final — and most frustrating — stage of the process.

Step 1: "Coding" the Estate on SARS eFiling

The executor's first task with SARS is to notify them of the death and transition the taxpayer's profile. This process is called coding the estate and is done through the SARS eFiling platform.

The executor registers on eFiling as the Representative Taxpayer for the deceased. This changes the taxpayer's status from an active individual taxpayer to a "Deceased Estate" entity. Two tax entities now exist:

1. The deceased person's account — covering all income up to the date of death
2. The estate's account — covering all income that accrues after the date of death and before the estate is wound up (rental income from estate properties, interest earned on the "Estate Late" bank account, dividends collected by the executor)

The executor is the representative taxpayer for both and is personally liable for ensuring both are compliant.

Step 2: Filing All Outstanding Income Tax Returns

Before SARS will issue the DEC letter, every outstanding income tax return for the deceased must be filed and assessed. This includes:

• Any unfiled returns for years prior to the date of death
• The final "date of death" return, covering the period from 1 March of the last tax year through the actual date of death

The executor should request the deceased's full SARS filing history through eFiling early in the administration process — before drafting the Liquidation and Distribution account — to identify exactly how many outstanding returns exist. Discovering mid-process that a deceased had five years of unfiled returns adds months to the timeline.

If the deceased ran a business, partnership income, rental income, or held directorships, the returns may be complex. Consider engaging a registered tax practitioner who specializes in deceased estate matters.

Step 3: Estate Duty Return

Estate duty — the tax levied on the dutiable estate under the Estate Duty Act of 1955 — is filed through SARS separately from the income tax return. The estate duty return must be filed within one year of the date of death (or within three months of executor appointment, if later). Interest accrues on unpaid estate duty.

The executor must calculate:

• The gross value of all assets at date of death
• Allowable deductions (debts, funeral costs, assets to surviving spouse)
• The dutiable estate value
• The Section 4A abatement (R3.5 million)
• Estate duty owed at 20% (up to R30 million) or 25% (above R30 million)

This calculation forms part of the Liquidation and Distribution (L&D) account and must be reviewed by the Master before any distribution is made.

Step 4: The SARS Deceased Estate Compliance (DEC) Letter

Once the executor has:

• Filed and settled all outstanding income tax returns
• Filed and paid the estate duty return
• Resolved any SARS queries or audits

SARS will issue the Deceased Estate Compliance letter (often called the DEC letter or tax clearance for deceased estate). This letter confirms that all tax obligations have been fulfilled and that SARS has no further claim against the estate.

The Master of the High Court requires this letter before closing the estate file. Without it, the executor cannot obtain the Master's final sign-off, and the estate technically remains open — meaning assets cannot be formally distributed.

Common Reasons the DEC Letter Is Delayed

In practice, obtaining the DEC letter is the step that most often pushes a straightforward estate past the 12-month mark. Common causes of delay:

Outstanding assessments. SARS does not issue the DEC letter while any income tax assessment is still pending. If a return is filed and SARS issues queries, these must be resolved before the assessment finalizes.

Unfiled returns from previous years. A deceased who had not filed returns for several years creates a significant backlog. Each year must be filed individually, assessed, any tax owing paid, and confirmed before the next year can proceed.

Estate income during administration. If the estate earns rental income, interest, or other income during the winding-up period, the executor must file annual estate income tax returns for each year the estate remains open. Estates that run for 18 to 24 months may need to file two years of estate income tax returns.

SARS audit or query. SARS may select the deceased's final return for audit. This adds months to the process and requires the executor to provide documentation supporting the deceased's income figures.

Contact information issues. If SARS correspondence goes to an old address and the executor is not registered on eFiling as the representative taxpayer, letters are missed and the process stalls.

Practical Tips for Executors

• Register as representative taxpayer on eFiling immediately after receiving the Letter of Executorship — do not wait until you need to file.
• Request a full compliance profile from SARS early: it shows every outstanding return and every open assessment.
• Engage the SARS Deceased Estate branch rather than the general call centre. They handle these matters specifically.
• If SARS correspondence is not moving, the National Financial Ombud Scheme South Africa (NFOSA) can assist with complaints against SARS delays on deceased estate matters.
• Keep the Estate Late bank account active until after the DEC letter is received — premature closure can complicate the final tax position.

After the DEC Letter: Closing the Estate

Once the DEC letter is in hand, the executor submits it to the Master along with any other outstanding documentation. The Master then formally closes the estate file. The executor files a final report, any remaining bond of security is released, and the estate administration is complete.

For a complete roadmap of the SARS process, the Liquidation and Distribution account, and every step of South African estate administration from the death certificate through to final closure, the South Africa Estate Settlement Guide covers it all with step-by-step instructions and checklists.

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