SARS tax period closes end of February

On 29 February, the tax year comes to a close for individuals and for companies whose financial year ends in February.

If your company’s financial year-end is in February, you must file two tax returns by 29 February 2024: the Companies Income Tax return (ITR14) and the second Provisional Tax Return (IRP6).

These returns declare your company’s taxable income, deductions, and tax credits. Filing your tax returns on time and accurately is important to avoid penalties and interest.

To file your tax returns, register your company on SARS eFiling, our secure and convenient online platform where you can submit your returns electronically.

Individuals and Trusts should remember to file their second Provisional Tax return (IRP6) for the 2024 tax year of assessment on 29 February 2024. Individual taxpayers and Trusts are categorised either as Provisional Taxpayers or Non-Provisional Taxpayers depending on their income and sources of income.

Please confirm if your income meets the definition and criteria for Provisional Tax published on the SARS website (www.sars.gov.za). Any person, including Trusts, who receives income (or to whom income accrues) other than remuneration, is a Provisional Taxpayer.

Most salary earners are not Provisional Taxpayers if they have no other sources of income. Provisional Tax is not a separate form of tax. It is a way to spread the Income Tax amount over the relevant year of assessment and to pay it in advance. This is done in two periods with an optional third top-up payment, to help taxpayers avoid a large tax debt on assessment.

Submit and declare Provisional Tax payments on the Provisional Tax returns form (IRP6) on eFiling in the relevant year of assessment. There are two dates for submission: before 31 August and on the last day of February. If your estimated taxable income is nil, you should still submit an IRP6.

SARS appreciates all the taxpayers who have complied with their tax obligations. We urge taxpayers to be honest and responsible by submitting accurate returns and paying all taxes due on time.

Solar Panel Energy Tax Rebate

South Africa is struggling to stabilise the electricity supply and to reduce overloads and power cuts.

On 22 February 2023, the Minister of Finance, Enoch Godongwana, announced the introduction of the Solar Panel Energy Tax rebate. This initiative encourages taxpayers to install solar panels at their homes.

During 2024’s second Provisional Tax period, the new tax rebate will be available in the “Rebate” section on the IRP6 form. The rebate will be available to taxpayers who installed solar panels or solar water-heaters on their properties for domestic use.

The rebate applies only to new and unused solar panels with a minimum generation capacity of 275 watt per panel, and which must be connected to the mains distribution of the residence.

The rebate does not cover the cost of installation or any other items. Individuals who install rooftop solar panels may claim a deduction of 25% of the cost of the panels, up to a maximum of R15 000, from their Personal Income Tax liability in the 2024 tax year. The rebate is available for one year only, from 1 March 2023 to 29 February 2024.

To claim the rebate, taxpayers must provide a VAT invoice, proof of payment, and an electrical certificate of compliance for the solar panels. The rebate amount must not exceed R15 000, otherwise the system will display a warning message and ask the taxpayer to correct the amount.

For more information, visit the SARS website (www.sars.gov.za).

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