20 June 2023 – What are the changes this year? SARS has made the following updates for the upcoming Personal Income Tax (PIT) Filing Season:
Aligning the 40 Business Days Rule to the Filing Season End Date
Last year, when the rule was first introduced, those in the auto-assessment population were granted 40 business days from the issue date of the auto-assessment to revise their return if they needed to amend their auto-assessment.
This year, we are extending the 40 business days to coincide with the normal filing due date for non-provisional taxpayers, which is 23 October 2023. This will give those in the auto-assessment population more time to file a return if they wish to edit their auto-assessments.
Payment Due Dates
This year, the payment due date for non-provisional eFilers will be adjusted as follows:
- For taxpayers who are not in the auto-assessment population, payment due date will be 30 days after a notice of assessment has been issued,
- For taxpayers who are auto-assessed, payment due date will be 30 days post Filing Season 2023 closing date.
Statement of Assets and Liabilities
Provisional taxpayers with business interests are required to declare their assets and liabilities (based on cost) in their tax returns each year. Taxpayers who fall within this category, and with assets above R50 million, are required to declare specified assets at market values on their 2023 tax returns.
Foreign Income Disclosure
SARS introduced a Foreign Income container on the return for taxpayers who must declare worldwide foreign income, however it was noted that taxpayers who must declare income sourced from a foreign employer while working in South Africa and/or abroad do not have an appropriate source code to declare remuneration for foreign service rendered income. The following three new fields will now apply.
- New field “Income received from foreign employment services not reflected on a South African IRP5/IT3(a) certificate, subject to tax outside RSA and the s10(1)(o)(ii) exemption does not apply”.
- New field “Income received from foreign employment services not reflected on a South African IRP5/IT3(a) certificate, subject to tax outside RSA and the s10(1)(o)(i) exemption applies.”
- New field “Income received from foreign employment services not reflected on a South African IRP5/IT3(a) certificate, subject to tax outside RSA and the s10(1)(o)(i) exemption does not apply.”.
Spouses Married in Community of Property Assessment
Taxpayers who are married in community of property are taxed on half of their interest, dividends, rental income, and capital gains. This Filing Season SARS has retrieved “Married in community of property” status from taxpayer’s previous declaration and collaborated with the Department of Home affairs to confirm marital status. Where the spouses are successfully matched and have interest investments, SARS will replicate the interest investment certificate on both spouses’ return where they will be taxed 50% upon assessment.
Section 93 Reduced Assessment
SARS has automated the process of requesting Reduced Assessment in terms of section 93 of the Tax Administration Act. The process will use a form called RRA01 where taxpayer will be able to complete it on eFiling. This will enable efficiency and reduce costs for taxpayers.
Keep an eye on the Filing Season 2023 webpage.
