The SARS 2024 Filing Season is here, bringing with it key dates and important information for taxpayers in South Africa.
From 15 July to 21 October 2024, individual taxpayers must submit their tax returns.
Provisional taxpayers get a bit more time, with deadlines extending to 20 January 2025.
Taxpayers can benefit greatly from using the self-help channels provided by the South African Revenue Service.
These include eFiling, the SARS MobiApp, SARS USSD (1347277), and the SARS Online Query System (SOQS).
Utilising these tools can make managing taxes both efficient and straightforward.
Stay informed about changes this year, such as updates to the ITR12 form, deductions, and exemptions.
There’s also a new solar energy tax credit that could impact your return.
Keeping up-to-date can help ensure a smooth filing process and possibly even save you money.
Understanding the Tax Filing Categories
In the South African Revenue Service (SARS) 2024 Filing Season, taxpayers fall into different categories based on their type of income. Each category has specific deadlines and requirements.
Below, we break down the key points for provisional taxpayers, non-provisional taxpayers, and individual taxpayer assessments.
Provisional Tax
Provisional taxpayers include individuals who earn income from sources other than a salary.
This group includes freelancers, business owners, and those with rental or investment income.
They are required to submit tax returns twice a year.
The first submission is due by the end of August, and the second one by the end of January. This helps spread the tax burden throughout the year.
Provisional taxpayers need to estimate their yearly income and pay taxes accordingly.
Underestimating income can lead to penalties.
Accurately tracking all earnings and expenses is crucial for avoiding issues during filing.
Non-Provisional Taxpayers
Non-provisional taxpayers are typically salaried individuals who do not have additional income streams.
This category includes employees whose taxes are deducted by their employers and automatically paid to SARS.
For these individuals, the filing season starts on 15 July 2024 and ends on 21 October 2024.
They can file their returns via eFiling or through the SARS MobiApp.
Filing online is convenient as it can be done at any time and from anywhere.
Non-provisional taxpayers need to check their deductions and ensure all information is correct.
They might also qualify for tax deductions on medical expenses, retirement contributions, and educational expenses.
Assessment of Individual Taxpayers
Individual taxpayers receive auto-assessments if their income details are straightforward.
SARS sends these notices between 1 July 2024 and 14 July 2024.
Auto-assessments simplify the filing process by providing a pre-filled tax return based on existing data.
Those needing to make corrections or add information must file manually.
This manual filing deadline varies: for salaried individuals, it is 21 October 2024, while provisional taxpayers have until 20 January 2025.
It’s important for all taxpayers to review their assessments carefully to ensure all income and deductions are accurately represented.
Mistakes can lead to fines or additional tax liabilities.
Preparation for the Filing Season
To ensure a smooth process during the Filing Season 2024, taxpayers must gather essential documents, understand auto-assessment procedures, and ensure proper registration and compliance.
Gathering Essential Documents
Gathering all necessary documents is crucial.
Taxpayers should collect tax certificates from employers, financial institutions, medical schemes, and retirement annuity fund administrators. They should also have details of any additional income sources ready.
Having previous tax returns is beneficial for reference.
Keeping organised records of expenses and deductions helps quickly fill out the required forms.
Understanding Auto-assessment
SARS’s auto-assessment system simplifies the filing process.
From 1 to 14 July 2024, taxpayers with straightforward tax affairs will receive auto-assessment notices.
These assessments use data from third-party providers like employers and financial institutions.
It is important to review the auto-assessment notice for accuracy.
Taxpayers must log into eFiling or use the SARS MobiApp to accept or correct the assessment if necessary.
Ensuring all income and deductions are reported correctly prevents discrepancies.
Registration and Compliance
Taxpayers must ensure they are registered with SARS.
Non-provisional taxpayers must file between 15 July and 21 October 2024.
Provisional taxpayers have until 20 January 2025.
Keep details up-to-date in the SARS system to avoid issues.
Compliance involves submitting accurate information and meeting deadlines.
Use SARS’s self-help channels like eFiling, SARS USSD, and the SARS Online Query System for efficiency.
Technological Tools for Efficient Filing
Managing taxes has become easier with the use of technological tools like the SARS eFiling website and SARS MobiApp. These platforms streamline the tax filing process, making it efficient and user-friendly. Additionally, various support and assistance options are available.
eFiling Website
The eFiling website is an online platform where taxpayers can submit their tax returns.
It offers a secure and accessible way to manage tax obligations without having to visit a SARS office.
Taxpayers can:
- Submit tax returns
- Make payments
- Check their tax status
The website features a user-friendly interface and step-by-step guides to assist taxpayers at every stage.
Supporting documentation can also be uploaded directly, ensuring a complete and accurate submission.
SARS MobiApp Features
The SARS MobiApp allows users to manage their tax affairs on their smartphones.
Available for both iOS and Android, the app is designed for convenience and ease of use.
Key features include:
- eFiling: Submit returns and conduct transactions
- Real-time notifications: Stay updated on tax matters
- Document upload: Easily submit supporting documentation
The app is regularly updated to ensure a smooth experience.
The latest version includes several enhancements such as improved artificial intelligence for better assistance and quicker processing times.
Support and Assistance
Taxpayers can access various support and assistance options to help with their filing needs.
Help-You-eFile is a service offering real-time support through the eFiling website.
If further assistance is needed, SARS provides multiple contact options, including:
- Email support for detailed queries
- Phone assistance for immediate help
- SMS notifications to keep taxpayers informed
These support channels ensure that taxpayers can get the help they need promptly, reducing any potential stress during the filing process.
Tax Deductions and Incentives
The 2024 tax filing season offers a variety of deductions and incentives, particularly for those investing in renewable energy and certain other eligible assets. Knowing the details can help taxpayers maximise their benefits.
Understanding Allowable Deductions
Renewable Energy Tax Incentive: Individuals and businesses investing in renewable energy sources, such as solar photovoltaic (PV) panels and inverters, can benefit from this.
The redesigned section 12BA permits deductions up to 125% of the cost for eligible assets. This incentive has no electricity-generation limits, making it ideal for both small and large projects.
Rooftop Solar Tax Incentive: This incentive allows deductions for the costs associated with installing rooftop solar panels.
Taxpayers must ensure they have an Electrical Certificate of Compliance to qualify. Costs related to batteries, inverters, and other installations can be included.
Retirement Annuity Fund: Contributions made to retirement annuity funds are deductible up to a certain limit.
Ensuring contributions are within allowable limits helps in reducing taxable income.
Tax-Free Investments: Investments in tax-free savings accounts offer a straightforward way to save money without paying tax on the returns.
This can include various financial instruments, from mutual funds to fixed deposits.
Urban Development Zones (UDZ): Taxpayers investing in properties within designated UDZs can claim substantial deductions.
These zones aim to promote urban renewal, offering considerable tax breaks for development costs.
Legal Framework and Taxpayer Rights
The 2024 tax filing season involves understanding both the legal framework guiding tax obligations and the rights of taxpayers. Key pieces of legislation and important procedures ensure smooth tax compliance and recourse.
Income Tax Act and Regulation
The Income Tax Act governs how income tax is collected and managed.
It outlines the obligations of taxpayers, including the submission of an individual income tax return by specified deadlines.
SARS enforces the regulations under this act and provides a notice of assessment after reviewing returns.
It’s crucial for taxpayers to comply to avoid penalties.
Under the Tax Administration Act, SARS can issue an original estimate assessment if returns are not filed on time.
Penalties, including understatement penalties, may apply for failing to meet requirements.
Taxpayers have rights, including the ability to object to assessments and the right to a fair process, which ensures transparency and accountability in tax administration.
Tax practitioners play an essential role in helping individuals navigate these regulations, ensuring compliance, and defending taxpayer rights.
Effective use of these resources can prevent issues and facilitate a smoother filing season.
Frequently Asked Questions
The 2024 SARS filing season includes key dates, registration steps for eFiling, tax return requirements, submission deadlines, tax thresholds, and updated tax tables.
What are the key dates for the 2024 SARS filing season for individuals?
Filing for the 2024 tax year starts on 1 July 2024.
Notifications for auto-assessments will be sent via SMS or email, and the deadline to respond is 40 business days after the notice.
How does one register and use the SARS eFiling system?
To register, visit the SARS eFiling website, complete the online registration form, and verify your details.
Once registered, you can log in to submit your returns, check your assessment status, and access various SARS services.
What are the SARS tax return requirements for the 2024 filing season?
For 2024, taxpayers need to fill out their tax returns accurately, include details of income, deductions, and contributions to tax-free investments.
Updates include claims for solar and renewable energy installations, and changes to deduction systems.
What is the deadline for submitting tax returns in 2024?
The deadline for submitting individual tax returns for the 2024 tax year varies.
For auto-assessments, it is 40 business days from the notice. Confirm specific deadlines through SARS communications as they may provide different dates based on individual circumstances.
For the 2024 tax year, what is the threshold of minimum salary for paying tax in South Africa?
For the 2024 tax year, the tax threshold for individuals under 65 is typically around R91,250.
For those aged between 65 and 75, it is higher, generally around R141,250. Ensure you check the latest thresholds as they can be subject to annual adjustments.
What are the updated SARS tax tables for the 2024 fiscal year?
SARS provides updated tax tables each fiscal year outlining the tax rates applicable to different income brackets. These tables detail the tax percentage that will be applied based on various income levels, including applicable rebates and deductions.
Check SARS’s official resources for the most accurate and updated information.