2023 SARS Individual Filing Season is upon us

The previous introduction of auto-assessments, among other improvements, was in line with SARS’ journey to build a smart, modern revenue service with unquestionable integrity, trusted and admired by all.

Improved technology, the use of data, artificial intelligence and algorithms have enabled SARS to make it easier for taxpayers to comply with their tax obligations.

SARS anticipates that there will be a mad rush to submit as soon as Filing Season opens. To reduce the number of walk-ins and long queues, SARS will again issue auto-assessed tax returns to numerous non-provisional individual taxpayers with less complicated tax matters.

This year, SARS is giving more time for those who have been auto-assessed and may not agree with their auto-assessment. They will now be able to amend and submit it by filing a normal tax return (ITR12) before 23 October.

Employers, medical aid schemes and financial institutions, among others, who submitted correct information and data on time, enabled the effective implementation of the SARS Auto-Assessment programme.

Importantly, the use of technology and data has made it easy for SARS to refine and improve its resources to detect non-compliance. This, then, makes non-compliance hard and costly.

As a result, SARS will impose penalties on taxpayers who intentionally attempt to claim impermissible expenses or understate their income. In addition, there will be administrative non-compliance penalties for those taxpayers who do not adhere to the deadlines of this year’s Filing Season.

Auto Assessment Changes for 2023

Last year auto-assessed taxpayers had 40 days to file a return if they did not agree with the auto-assessment.  But this year SARS will allow auto-assessed taxpayers to file until the normal filing season deadline.

PAYE admin penalties for Employers

• Administrative penalties are imposed for PAYE where an employer has failed to submit an EMP501 reconciliation declaration on time (that is, after the final due date for submission). This will apply to employers who failed to submit a reconciliation on or before 31 May 2023.

PIT admin penalties

With effect from 1 December 2022, administrative penalties relating to the late submission of a tax return are charged when one or more tax return(s) relating to prior tax years are outstanding.

• Penalties will be imposed for Personal Income Tax (PIT) for late or non-submission at a fixed amount ranging from R250 to R16 000.
• To avoid further penalties, taxpayers must submit the required returns. Failure to do so will result in a monthly recurring admin penalty being levied until the taxpayer is compliant.

Changes to the eFiling platform

In accordance with SARS’ vision and strategic objectives, which includes modernising our systems to provide digital and streamlined online services, SARS continues to upgrade its technology infrastructure and digital offerings to offer effective and smooth service to taxpayers, traders, and travellers. SARS will continue to ensure that these systems are strong and secure, and will perform regular upgrades, enhancements, and maintenance.

Appointments at branches

Taxpayers are reminded that if they wish to visit a SARS branch, they should first make an appointment.

They can do this by:

• Sending an SMS to 47277 (iSARS) with the word Booking (Space) ID number/Passport number.
• Dialling *134*7277# free of charge on their cellphone and choosing the eBooking option.
• Going to the SARS website and clicking on the “Book an Appointment” icon. Complete the online form.