2024 Individual tax filing season open

Taxpayers can file now via SARS eFiling or the SARS MobiApp on or before 21 October 2024 for Non-Provisional Tax (salaried individuals) and 20 January 2025 for Provisional Tax.

The advantage of filing online is that it can be done anywhere and at any time. Filing on time and with the correct details will help taxpayers avoid penalties and interest.

 What is Tax Filing Season?

It is the time when taxpayers must submit their annual Personal Income Tax Returns (ITR12) to SARS. By completing their returns, taxpayers declare their income and deductions for SARS to determine their final tax.

Income that is subject to tax according to the Income Tax Act, 1962 (Act 58 of 1962) includes:

• Salaries, wages, bonuses, overtime pay, and allowances.
• Fringe benefits, such as company cars, medical aid contributions, or low interest loans.
• Lump sum payments, such as severance pay, retirement benefits, or gratuities.
• Commission, fees, or tips earned from rendering services.
• Annuities, pensions, or interest received from investments; and
• Any other income.

Some amounts are exempt and not taxable from Income Tax, such as:

• Reimbursed travel allowances that do not exceed the prescribed rate per kilometre.
• Retirement fund lump sum benefits that fall within the tax-free thresholds.
• Dividends received from South African companies; and
• Interest received from a South African source that falls within the annual exemption limits.

 What happens after an Income Tax Return (ITR12) is submitted?

SARS verifies all income declared, considers all allowable deductions such as donations with a section 18A certificate (proof that you donated to an approved Public Benefits Organisation), tax withheld by employers (Pay-As-You-Earn), and accuracy of taxpayers’ information.

If the taxpayer has any outstanding amount, they must settle it or make a payment arrangement with SARS. In case of a refund, SARS will pay the money to the taxpayer’s bank account if they are tax compliant.

The Notice of Assessment (ITA34) will display all the information above. If a taxpayer is chosen for verification, they must please provide supporting documents or fix the error on their return through SARS eFiling or MobiApp.

We encourage all taxpayers who are required to submit their returns to do so before the 24 October 2024 deadline.

Being tax compliant means that a person has:

• Registered as a taxpayer and has a valid tax reference number.
• Submitted all the required returns on time.
• Paid all the taxes that they owe or made arrangements to pay them.
• Updated their personal information, such as contact details and banking details, with SARS; and
• Complied with all the requests from and obligations to SARS.

By being tax compliant, one can avoid penalties, interest charges, audits, and legal actions from SARS.

Top tips

Taxpayers must:

• Make sure that they have all the supporting documents and receipts for the expenses they want to claim, such as invoices, bank statements, travel logs, etc.;
• Check the tax return forms and guides on the SARS website to see what types of expenses are deductible and what are not, depending on their source of income and tax code;
• Fill in the relevant sections of their tax return with the correct amounts and categories of their expenses — it is important not to overstate or understate expenses, as this may result in penalties from or audits by SARS;
• Keep a copy of their tax return and supporting documents for at least five years in case of any queries from or disputes by SARS;
• Visit the SARS TV channel on YouTube to view our How-to videos;
• Be on high alert for phishing and scams — do not click on any links received via SMS or email; and
• Remember that banking detail changes or confirmation thereof can only be done via SARS eFiling by logging into one’s profile or through a branch visit (appointment only).

This article was provided by the South African Revenue Service (SARS)