The 2023 tax season is in full swing, and it’s crucial to stay informed and prepared. SARS has announced that the filing season will run from 7 July to 23 October 2023 for individual taxpayers, while provisional taxpayers have until 24 January 2024 to file via eFiling or the MobiApp. This year, there’s good news for auto-assessed taxpayers who were unhappy with their assessments. They now have until 23 October to file their returns, providing much-needed relief.

In this article, we will break down the changes made to this year’s tax season and provide valuable tips on how to navigate it efficiently.

Who needs to submit a tax return?

If you are a South African tax resident and have earned above the tax threshold or have multiple sources of income, you are required to file a tax return. For example, if you’re employed and earn rental income from an investment property, you’ll need to file returns. Changing employers during the tax year also counts as separate income streams, warranting a tax return.

Certain circumstances may require you to file a tax return, regardless of whether your taxable income exceeds the threshold. These include conducting business in or outside of South Africa, selling assets with a capital gain over R40,000, or owning foreign currency or assets exceeding R250,000 during the tax year.

Do I need to declare foreign income earned?

Yes, taxpayers must declare their worldwide foreign income earned from foreign employers while working in South Africa or abroad. To facilitate this, SARS has introduced three new fields specifically for foreign earners.

When don’t I need to submit a tax return?

Not everyone who earned an income during the tax year needs to file a tax return. Individuals are only liable to pay tax if their taxable income exceeds the tax threshold for the March 2022 to February 2023 period, which is as follows:

• R91,250 for individuals younger than 65 years old.
• R141,250 for individuals aged 65 to below 75 years old.
• R157,900 for individuals aged 75 years and older.

Additionally, if the following criteria apply to you, you are not required to submit a tax return:

• Your total pre-tax salary for the year was not more than R500,000, and employees’ tax has been deducted according to the deduction tables.
• You received employment income from a single employer throughout the full assessment year.
• You have no car allowance, company car, travel allowance, interest income, rental income, or tax-related deductions.

If you’re uncertain about whether you need to submit an ITR12, SARS provides guidelines with nine questions related to your income during the assessment year.

How do auto-assessments work?

Taxpayers selected for auto-assessment will receive an SMS between 30 June and 7 July 2023 notifying them of their selection. SARS uses data from employers, medical schemes, financial institutions, retirement annuity funds, and other third-party providers to perform auto-assessments. After collecting the necessary data, SARS completes an auto-assessment that is pre-loaded onto your profile. You can view your auto-assessment starting at 20:00 on 7 July 2023 through the SARS MobiApp or eFiling. Only individuals selected for auto-assessment will receive the SMS. If you didn’t receive an SMS, you’ll need to submit your Personal Income Tax Return (ITR12).

If you’re married in a community of property, each spouse is liable for tax on their share of interest, dividends, rental income, and capital gains. SARS has simplified this process by retrieving the ‘married in community of property’ status from the Department of Home Affairs. Each spouse’s return will now include the interest investment certificate, and they will be taxed 50% upon assessment.

Accepting the auto-assessment: If you’re satisfied with the auto-assessment outcome, you can accept it online. By doing so, you no longer need to file a tax return, as SARS has taken care of it for you. If you’re due a refund, SARS will process it within approximately 72 hours, provided your banking details are correct. If you owe SARS money, you can make payment through eFiling, EFT, or the MobiApp, ensuring you pay on time to avoid interest. Before accepting your auto-assessment, carefully review all prepopulated third-party information on your tax return.

Rejecting the auto-assessment: If you’re unsatisfied with the auto-assessment, online functionality allows you to edit your returns. The deadline for submission is now 23 October 2023. If you have additional deductions to claim, such as rental income, excess medical expenses, or home office deductions, enter them online. Remember, it’s your responsibility to ensure the accuracy of the information you declare. Failing to fully disclose your income may result in penalties for non-compliance.

What do I need to prepare for e-Filing?

If you haven’t received your IRP5 or IT3(a) forms and other tax certificates, such as your medical aid or retirement annuity certificate, contact your employer and service providers promptly. Additional documentation required for submission includes:

• Certificates for local interest income, foreign interest income, and foreign dividend income. If married in a community of property, both your and your spouse’s certificates are necessary.
• Proof of qualifying expenses from your medical scheme between 1 March 2022 and 28 February 2023.
• A logbook for claiming business travel deductions if you receive a travel allowance or fringe benefit from an employer-provided vehicle.
• Information on local and foreign capital gain transactions.
• Documents and receipts for commission-related expenditure.
• Information related to rental income and the letting of assets.
• Information on income to be declared or deductions to be claimed.

Where do I file my tax returns?

As a taxpayer, you have the option to file your returns via the eFiling site, the MobiApp, or in person. If you choose eFiling or the MobiApp, SARS agents are available to provide telephonic assistance. The MobiApp has been recently enhanced to offer additional services accessible with or without data or airtime. These services include requesting eBooking appointments, confirmation requests for tax return submission, issuing Tax Registration Numbers, and requesting statements of appointment.

What are the payment due dates?

For non-provisional taxpayers, the payment due dates for 2023 are as follows:

• For non-auto-assessed taxpayers, payment is due within 30 days after receiving a notice of assessment.
• For auto-assessed taxpayers, payment is due 30 days after the 2023 filing season closes.

Contacting SARS

Taxpayers who cannot file online or through the app can schedule an appointment to file their tax returns in person at a SARS branch. To make an appointment, contact the SARS Contact Centre at 0800 00 7277. Other methods of contacting SARS include:

• USSD Channel (USSD 1347277#): Use the SARS USSD channel to request your tax number, check your account balance, book an e-Booking, and determine if you need to file tax returns.
• SMS 47277: Utilise the SARS SMS facility to book appointments, confirm tax return submissions, request tax registration numbers, and inquire about account-related matters.
• SARS Online Query System (SOQS): Raise queries with SARS without visiting a branch using the online query system.

Navigating the 2023 tax season doesn’t have to be daunting. With the right knowledge and preparation, you can fulfil your tax obligations efficiently and accurately. Remember to stay updated with SARS guidelines and deadlines to ensure a smooth tax filing experience.