19 June 2024 – As part of our commitment to provide taxpayers and traders with clarity and certainty and making it easy for them to comply with and fulfil their tax obligations, we are bringing you a new monthly digital column, see the June 2024 issue of the Monthly Tax Digest.
Source: SARS Tariffs
Monthly Tax Digest for June 2024
19 June 2024 – What has changed this year for the Personal Income Tax Filing Season? SARS is continuing its journey towards building its vision of a smart, modern organisation with unquestionable integrity, that is admired by all. It is working hard to make it easy for taxpayers to comply with their legal obligations. the updates for this coming Filing Season are:
Section 11F(2)(a) of the Income Tax Act No 58 of 1962 was amended as follows: Where any person’s year of assessment is less than 12 months, the amount stipulated in section 11F(2)(a) of the Act used to calculate the allowable retirement contribution deduction (currently R350 000) shall be adjusted. The adjusted amount will bear the same ratio to R350 as the number of days in that year of assessment bears to 365 days.
Therefore, if any person’s year of assessment is less than 12 months, the allowable retirement contribution deduction (currently R350 000) will be applied pro rata.
Section 12T(4)(a) of the Income Tax Act was amended as follows: Where any person’s year of assessment is less than 12 months, the contribution limitation stipulated in section 12T(4)(a) of the Act (currently R36 000), shall be adjusted. The adjusted contribution limitation will apply in aggregate for any year or years of assessment during the 12-month period commencing in March and ending at the end of February of the immediately following calendar year.
Therefore, if any person’s year of assessment is less than 12 months, the applicable contribution limitation (currently R36 000) will be applied pro rata.
Section 13quat of the Income Tax Act, was amended by substituting the following paragraph in subsection (5) for paragraph (c): ‘‘(c) which is brought into use by the taxpayer after 31 March 2025.’’
Therefore, the Income Tax Return (ITR12) form will be amended to extend the allowable deduction until 31 March 2025.
To encourage individuals to invest in clean electricity-generation capacity, the solar energy tax credit was available for one year. It applied to new and unused solar PV panels that were acquired by the individual and brought into use for the first time from 1 March 2023 to 29 February 2024.
The amount of the solar energy tax credit allowed as a deduction to an individual was 25% of the cost of the solar PV panels described above, up to a maximum of R15 000.
It should be noted that a deceased estate did not qualify for solar tax credit.
The redesigned Renewable energy tax incentive will apply to the currently eligible renewable energy sources, with no electricity-generation limits for the duration of this temporary incentive. Assets will qualify if they are used in the generation of electricity. Businesses can deduct 125% of the cost incurred with reference to eligible assets, upfront.
Where a taxpayer disposes of an asset on or before 1 March 2026, for which a redesigned renewable energy tax incentive is granted, the amounts deducted (a maximum of 125% of the cost of the asset) will be fully recouped.
SARS has redesigned the s10(1)(o) (i) and s10(1)(o)(ii) questionnaire to make it easier for taxpayers to complete the return.
It noted that the ITR12 form rules were a challenge to taxpayers. Previously, taxpayers had to first select the applicable wizard questions for the income, exemption, and foreign tax credit containers before completing the exemption amount for qualifying criteria.
The updated form streamlines this process, making it easier for taxpayers to complete the return.
In recent years, SARS has observed that Tax Practitioners sometimes put their own details in the contact information section in the place designated for the individual taxpayers that they represent when submitting ITR12 forms. SARS wishes to emphasise to practitioners that when completing and submitting ITR12 returns for individual taxpayers, they must ensure that the container designated for the individual taxpayer’s details is filled with the taxpayer’s information, not that of the Tax Practitioner.
Importantly, it must be noted that there is already a designated container for Tax Practitioners to declare their own particulars. Therefore, Tax Practitioners must not use fields intended for individuals to declare their own details.
In addition, remember that the information in the declaration must be true and accurate.
Source: SARS Tariffs
Changes for the 2024 Filing Season
18 June 2024 – The latest Government Connect Newsletter Issue 19 is available. This issue includes information on the SARS Online Query System, Changes in the SARS medical aid data reporting, Auto Assessments, access to audit files, payment of contingency fees for tax services rendered and what to do when unauthorised changes have been made to your eFiling profile.
Source: SARS Tariffs
Government Connect Issue 19 (June 2024)
14 June 2024 – The latest Tax Practitioner Connect Newsletter Issue 53 is available. This issue includes information on the 2024 Filing Season dates, the SARS Online Query System, videos produced by the Education Team, changes in SARS medical aid data reporting, Auto Assessments, how to protect clients’ information, access to audit files and how to verify your personal details when you suspect unauthorised changes have been made to your eFiling profile.
Source: SARS Tariffs
Tax Practitioner Connect Issue 53 (June 2024)
14 June 2024 – SARS is calling for applications from professionals who wish to serve on its Independent Audit and Risk Committee members (ARC) for the term 2024 to 2027, which is subject to renewal at the discretion of the Accounting Authority. The ARC is a statutory committee, and candidates are expected to have an advanced understanding of the fiduciary duties as outlined in the Public Finance Management Act, the Companies Act, 2008 (Act 71 of 2008) and the Regulations thereof.
ADVERT CLOSING DATE: 26 JUNE 2024
The ARC serves as an oversight committee in relation to accounting & financial internal controls, compliance & risk management, and governance.
SARS is seeking suitably qualified professionals with a high degree of integrity, ethical leadership, executive leadership competence, and good interpersonal and communication skills who hold postgraduate qualifications in either Chartered Accountancy (SA), Audit (internal and external), Technology and Information Governance, Law and Risk Governance, and who possess:
Experience in tax law administration will be an added advantage. The appointed members shall receive remuneration in accordance with the rates determined by the Minister of Finance.
Want to be a ARC member? Click here to express your interest.
Source: SARS Tariffs
Call for Independent Audit and Risk Committee Members
14 June 2024 – SARS would like to invite all interested parties to a free tax education session to be held at our Upington branch on 27 June 2024.
For more information, click here.
Source: SARS Tariffs
Upington SARS Branch – Tax workshop on small business compliance
13 June 2024 – A new scam is doing the rounds pretending to be from SARS. The scam talks about tax refund. Please don’t click on the link given in the email and delete the scam email immediately. An example of the scam was published on our Scams & Phishing webpage.
Source: SARS Tariffs
New Scam alert – Tax refund
13 June 2024 -Achieving our Vision 2024 of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms and technology infrastructure. To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness and security.
In accordance with our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms and technology infrastructure are available, robust and secure, by performing regular upgrades, enhancements and maintenance.
Considering the above, SARS Digital platform upgrades are scheduled for Friday, 14 June 2024 from 18h00 to 22h00.
During this time, you may experience intermittent service interruption on our Customs Digital Platform.
Responses (CUSRES messages) to transactions submitted during this time will be delayed, however, arrival and exit management functions are available at land border posts for all released declarations and manifests.
Stakeholders are therefore urged to submit all Goods Declarations (bills of entry) and Road Manifest, especially those deemed priority, by Friday, 14 June 2024 @ 17h00.
Source: SARS Tariffs
Digital platform upgrade 14 June 2024
12 June 2024 – As part of the Customs Modernisation Programme (CMP), an online traveller declaration system called the South African Traveller Management System (SATMS) has been implemented in phases.
The online Traveller Declaration can be accessed via SARS Mobi Application and scanning the QR Code which is available on display throughout the Customs ports. Travellers can use the online Traveller Declaration to register or create a profile, complete, describe the goods in their possession and submit travelling declarations.
This phase of the project includes the:
SC-PA-01-11 – Traveller Processing – External Policy
SC-PA-01-11-A02 – Completion of Traveller Card – External Annexure
SC-PA-01-12 – SATMS Through the SARS Website – External Guide
SC-PA-01-13 – SATMS Through the Mobi-App and QR Code Scan – External Guide
Source: SARS Tariffs
South African Traveller Management System phase 2
12 June 2024 – As part of the Customs Modernisation Programme related to Air Passenger Tax (APT), the Travel Manifest Submissions function enables the taxpayer to submit manifests directly through the SARS Online Query System (SOQS) in a CSV file. The process for submitting the travel manifest has not been incorporated into the Customs and Excise SOQS Guide. A separate annexure has been created to provide a detailed step by step process on how to create a CSV file:
Source: SARS Tariffs
The Travel Manifest can now be submitted online
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