Overview
While the tax year for individuals ends on the 28 February each year, a few months are required so that certain information can be submitted to SARS which is then pre-populated on your tax return e.g.
- Employers need to submit IRP5s
- Financial institutions need to submit tax certificates (IRP3s) for any interest earned, capital tax obligations tax you have paid on retirement lump sums etc.
- Medical aids need to issue tax certificate
- Donation certificates must be issued
- Further obligations are being added each year – Trusts now need to make submissions
These submissions typically need to be made by the end of May so that SARS can update their systems in June and then the “tax season”, when you can submit tax returns, starts in July.
No matter how eager you may be (as you may have a refund due to you) SARS cannot accept a tax return until the “tax season” has started.
Auto-assessments
A few years ago, SARS introduced their Auto-assessment system. In terms of this process, SARS has identified taxpayers where they believe that their tax return is complete based on the various third-party submissions made to SARS. The SARS system generates an auto assessment which taxpayers can accept as being correct instead on completing their own tax return.
SARS has given notice that these auto-assessments will be sent to taxpayers between the 1 July – 14 July 2024. Apparently 5 million tax payers will receive auto assessments this year. While these taxpayers receive their auto assessments very early their deadline is still the same as other normal taxpayers – the 21 October 2024.
While convenient, there are several risks in accepting the auto assessment. Tax payers receiving an auto assessment should be very careful to ensure that it is correct before they choose to accept it as, even although the return was generated by SARS, you warrant that it is 100% correct and will still be liable to penalties etc if it is subsequently proved to be incorrect.
Normal tax season
Normal taxpayers can submit their tax returns from 15 July 2024 but must do so before 21 Octoer 2024.
Provisional taxpayers can submit their tax returns from 15 July 2024 but must do so before 20 January 2025.
Trusts can submit their tax returns from 15 July 2024 but must do so before 20 January 2025.
Who must submit a tax return
There are generally several questions that need to be answered to determine who is required to submit a tax return in South Africa.
At a high level, you generally do not need to submit a tax return if all of the below
- You earned less that the taxable income threshold (R95 750 for people younger than 65, R148 217 if you are aged between 65 – 75 and R165689 is you are older than 75)
- You only earned taxable income from one source
- Your total earnings are below R500 001 and your employer deducted tax
- You did not incur capital gains of more than R40 000
- You did not receive an allowance e.g. travel allowance
- You did not receive any taxable fringe benefits
- You did not receive any other income e.g. from letting property
- You did not receive a lump sum from a retirement fund (pension, provident or retirement annuity).
