Tax Compliance Status
We are aware that the letter issued by SARS when a Tax Compliance Status (TCS) is applied for, is causing some confusion.
The letter is titled ‘PIN Issued’. This means that SARS has issued a PIN. The issuing of a PIN is NOT an indication that the taxpayer is tax compliant.
The letter indicates:
- TCS details (Name and reference number of the taxpayer to whom the PIN applies)
- PIN Number
- Expiry date
The requestor of the TCS is advised that: ‘You may authorise a third party to view your TCS by providing them the PIN. The PIN only allows the third party access to your TCS. All other tax information remains secure’.
The third party who receives the PIN will log into their own profile on SARS eFiling and will verify your TCS using the PIN provided. The view they will see will indicate:
- In Green – the taxpayer is tax compliant
- In Red – the taxpayer is tax non-compliant
For more information on the TCS please visit: Manage your Tax Compliance Status | South African Revenue Service (sars.gov.za).
The guide can be accessed on: https://www.sars.gov.za/wp-content/uploads/Ops/Guides/GEN-ELEC-08-G01-Guide-to-the-Tax-Compliance-Status-functionality-on-eFiling-External-Guide.pdf
You can also watch a short video on: How to request your Tax Compliance Status on SARS eFiling – YouTube
Filing Season Updates
We would like to remind taxpayers of the Individual Filing Season dates:
- Individual taxpayers (non-provisional): 7 July 2023 to 23 October 2023
- Provisional taxpayers: 7 July 2023 to 24 January 2024
Tax Return Status Dashboard
The SARS Online Query System has a new feature called the Tax Return Status Dashboard providing Taxpayers, Registered Representatives and Tax Practitioners with a visual status of the progress of Personal Income Tax returns in terms of submission, verification/audit and refund processing.You are now able to check the progress of your Personal Income Tax Return after submission and stay informed.
Check your auto-assessment status
Taxpayers who qualify for this year’s Filing Season 2023 auto-assessment can now check whether they have been auto-assessed via the SARS Online Query Service functionality, click here.
Tips on how to upload or submit supporting documents using our digital channels
Did you know that submitting supporting documents to SARS can be done quickly, safely, and conveniently when using our online channels?
A taxpayer does not have to go to a SARS Branch to submit required supporting documents, but can choose to use any of these available online self-service options:
- eFiling or the MobiApp
- SARS Online Query System
It is important to note that your supporting documents need to adhere to the following specifications:
- Only.pdf,.doc,.docx,.xlsx,.jpg, and.gif files will be accepted.
- The maximum document size, per upload must not exceed 5MB.
- A maximum of 20 files can be uploaded for eFiling or the SARS MobiApp. It is important to scan your documents in batches so that each file is not larger than 5MB.
- Set the image setting on your scanner to 300dpi or less for optimal scanning quality. Your scanner must also be set to black and white and not colour.
- Once you click “Submit return to SARS”, you will not be able to submit additional documents, as the supporting document link will no longer be available after declaring that you have submitted all your supporting documents.
When uploading documents via eFiling; MobiApp or the SARS Online Query System, please ensure that the documents are not password protected.
Deleting of Taxpayers from Tax Practitioner Profiles
We are finding cases where Tax Practitioners are deleting taxpayers on their eFiling profile but are still receiving correspondence for taxpayers they no longer represent.
It is important that where a tax practitioner ceases to represent a taxpayer, that the tax practitioner update contact details prior to deleting the taxpayer to ensure there is no reference to the practitioner’s email address and other contact details.
Tax Practitioners are reminded to not insert their contact details in the taxpayer specific information fields.
Deductibility of interest on a bond as part of home office expenses – 2023 Tax Year
The interest on a mortgage bond was previously allowed as a tax-deductible expense as part of the home office expenses. However, since the publication on 4 March 2022 of the updated Interpretation Note 28, dealing with deductions of home office expenses incurred by persons in employment or holding an office, it was clarified that with effect from the 2023 tax year this expense is no longer deductible.
Therefore, if you are in employment or hold an office and you meet the requirements to claim home office expenses for the 2023 tax year, you are no longer allowed to claim interest on the mortgage bond. Click on the link for information on home office expenses: Home Office Expenses | South African Revenue Service (sars.gov.za)
CAPTCHA error when uploading supporting documents to the SARS Online Query System
Certain Tax Practitioners and Taxpayers are unable to upload supporting documents to the SARS Online Query System (SOQS) due to a CAPTCHA error – see below image.
This is resolved by clearing the browser cache. See these easy steps to clear different browsers.
Updated BRS – PAYE Employer Reconciliation for 2023/2024
The PAYE BRS for Employer Reconciliation version 22 1 2 is now published (previous version was 22 1 1). The validation rules for “Reason for non-deduction of tax” (source code 4150) have changed.
SARS wins court case against delinquent taxpayer
The Commissioner of the South African Revenue Service (SARS) has welcomed the Supreme Court of Appeal judgment, which dismissed with costs, two appeals against orders of the Gauteng Division of the High Court, Pretoria (case no 543/2021); and the KwaZulu-Natal Division of the High Court, Pietermaritzburg (case no 409/2022).
The first was an appeal against a winding-up order granted against the appellant, PFC Properties (Pty) Ltd (PFC), in favour of SARS, by the Pretoria High Court. The second appeal was against an order by the Pietermaritzburg High Court, in terms of which it dismissed an application to place PFC in business rescue.
The issue before the SCA was whether the conduct on the part of PFC and the De Robillard Family Trust’s trustees in launching the business rescue application, constituted an abuse of court process. The SCA held that that application should not have been considered by reason of its use in a scheme of abuse. The Court held that the business rescue application was a stratagem. Media release – SARS wins court battle against delinquent taxpayer | South African Revenue Service
Provisional Tax Due at the end of August
Provisional tax is a method of paying the income tax liability in advance, to ensure that the taxpayer does not have a large tax debt on assessment. Provisional tax allows the tax liability to be spread over the relevant year of assessment. It requires the taxpayers to pay at least two amounts in advance, during the year of assessment, which are based on estimated taxable income. A third payment is optional after the end of the tax year, but before the issuing of the assessment by SARS. On assessment the provisional payments will be off-set against the liability for normal tax for the applicable year of assessment.
Tax Practitioners are reminded that the first provisional tax payment is due at the end of August. See the enclosed page for more information: Provisional Tax | South African Revenue Service (sars.gov.za)
Amendments to the SARS Payments Rules
Taxpayers and traders are encouraged to make payments via EFT (Electronic Fund Transfer) to the SARS public beneficiaries listed on the banking platform or eFiling.
Cash deposits to a SARS Customs and Excise bank account at any bank branch is no longer available as a payment option to SARS clients. See the enclosed guide. GEN-PAYM-01-G01 – SARS Payment Rules – External Guide
Scams – SARS Stop Order
Beware of a scam trying to enforce non-existent taxation charges on fund transfer. For more information visit our Scams examples webpage.
Administration of Deceased Estates
Do you know what should happen after your family member had passed on? The surviving spouse, children, parents and heirs are directly impacted by the death of the deceased. Do you want to finalise the estate as quickly as possible? The Administration of Deceased Estates leaflet will assist you to understand the parties involved and the process to report a death and an estate.
The following video provides information on the reporting of deceased estates to SARS.