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The SA Revenue Service tax filing season for the 2024 year of assessment (that is, for income earned during the period March 1, 2023-February 29, 2024) commenced on July 15.
Individual taxpayers who were not auto-assessed and not registered as provisional taxpayers have until October 21 to submit their income tax returns (ITR12). Those also registered for provisional tax have until January 20 2025 to submit their income tax returns. Failure to submit a return on time will result in monthly noncompliance penalties being levied by Sars.
Though numerous taxpayers have been auto-assessed and therefore do not have to submit a return on the system, it is still important to verify the information on your income tax return. These returns have been automatically populated based on information provided to Sars by third parties.
In terms of the Tax Administration Act, the onus is on the taxpayer to verify that all information is correct, and that all income has been declared. If you do not agree with the information on the return, you will have to submit a return, which will then replace the auto-assessed return. You can access and submit your income tax return by logging into your tax profile with your unique username and password. This can be done by using Sars eFiling or on the Sars MobiApp on your smartphone.
Some reasons why you should submit a return instead of accepting the auto-assessed return include the following:
- Not all income has been declared (remember, an SA resident is taxed on worldwide income and not only on SA source income, whereas a non-resident is only taxed on SA source income).
- You wish to claim deductions that were not initially included in the return (such as other qualifying medical expenses paid, or expenses incurred while carrying on another trade).
If you need to interact with Sars (for example, to get your tax number), you can do it via your mobile device and you do not have to visit a Sars branch:
- By telephone, where you can contact the Sars contact centre to speak to an agent during working hours.
- By sending an SMS to 47277, services are free of charge. This is only for individual taxpayers registered for personal income tax; you have to use the following text-specific information, followed by a space and your ID number: File to confirm whether you should file an income tax return; TRN to obtain your tax number; Balance to obtain your balance statement of amounts owing to or by Sars; and Booking for a request to book an online appointment.
- Via online services such as the Sars MobiApp or the Sars webpage (www.sars.gov.za)
A noteworthy provision applicable to the 2024 year of assessment is the section 6C solar energy tax credit. The section 6C tax credit is a once-off tax credit available to natural persons. This tax credit only applies to the 2024 year of assessment and is available to natural persons who have installed solar panels at their place of residence. The purpose of this credit was to encourage natural persons to invest in renewable energy, so continuing trade is not a requirement to be eligible for this credit.
From September 1, taxpayers will also be allowed to withdraw money from their retirement funds as the so-called two-pot system takes effect. Your retirement fund savings will be divided into two pots – a savings pot and a retirement pot. On August 31, the lesser amount – either 10% of your fund’s value or R30,000 – will be designated as the initial funding for the savings pot, known as seeding capital. This allocation is a singular event to commence the dual-pot structure and will not take place annually.
Dr Oosthuizen is head of taxation in the School of Accountancy at University of the Free State.
