Understanding the SARS Deceased Estate Compliance (DEC) Letter: Process, requirements and timelines

Settling a deceased estate in South Africa requires several formal steps, one of the most critical being the issuance of the Deceased Estate Compliance (DEC) letter by the South African Revenue Service (SARS).

The DEC letter is confirmation that all tax returns up to the date of death and post-death, have been submitted and assessed and any resulting tax settled.

Dealing with taxes during the administration of a deceased estate

Once the Letters of Executorship has been issued by the Master of the High Court and an executor is appointed to attend to the administration of a deceased estate, the executor must report the death to SARS through approved channels (eFiling, SARS Online Query System, email or SARS branch) submitting all estate reporting documentation. SARS then ‘codes’ the deceased taxpayer, assigns a case number and updates the executor as the registered representative.

During the administration of the estate, all returns up to the date of death must be filed, covering:

• Income tax
• Value-added tax
• Pay As You Earn
• Skills Development Levy
• Unemployment Insurance Fund
• Estate Duty (if applicable)

If the estate generates post‑death income, SARS requires a second estate tax number and the executor must submit ongoing estate tax returns until finalisation.

Only once these obligations are met will SARS issue the DEC letter, which is required to attend to the final distribution, Master’s final requirements and closure of the estate file.

Process for applying for a DEC Letter

SARS operates under a 21‑business‑day turnaround benchmark, provided that:

• All required documents are submitted correctly
• No queries or discrepancies arise

This timeframe applies from the date SARS acknowledges the complete submission. This is the original submission of all relevant documents and tax information requesting the DEC. SARS issues a case number, which must be used for all communication.

Escalation process when a DEC letter is not issued

Should SARS fail to issue the DEC within the expected period without a valid query, a formal escalation procedure applies.

After the initial 21‑day period, executors may escalate the request by phoning SARS. A new case number is issued.

If escalation does not resolve the issue, a formal SARS complaint may be lodged through SARS eFiling, the SARS contact centre or at a SARS branch.

The Complaints Management Office (CMO) will then intervene. Complaints are specifically intended for service‑related failures, such as unresolved or excessively delayed requests.

If at any stage during this process, SARS raises a query, the clock resets

If SARS identifies missing documents, incorrect information or unresolved tax matters, it will issue a query.

When this happens:

• The process is paused
• The executor must supply the required corrections or documents
• Once resubmitted, a new 21‑business‑day cycle begins from day one

Without SARS issuing the DEC, the estate cannot be finalised and final distribution is delayed.