SARS

20 June 2024 – The Radio engagement schedule for Free State and Northern Cape for June 2024 is now available.

21 June 2024 – High Court judgments: The following High Court judgments were published on the SARS website:

CSARS v Drs Mkhabele and Indunah Diagnostic Radiologists Inc and Others (2024/036576) [2024] ZAGPPHC 488 (30 May 2024)

Fair-Trade Independent Tobacco Association NPC and Others v Commissioner for the South African Revenue Services and Another (115176/2023; 115375/2023) [2024] ZAGPPHC 457 (15 May 2024)
CSARS v Buthelezi and Others (B5917/2023) [2024] ZAGPPHC 467 (10 May 2024)

Baseline Civil Contractors (Pty) Ltd v CSARS (A83/2023) [2024] ZAWCHC 113 (26 April 2024)

Summaries of the aforementioned judgments are available on the High Court Judgements page.

21 June 2024 – Income Tax Act, 1962

Coronation Investment Management SA (Pty) Limited v CSARS (CCT 47/23) [2024] ZACC 11 (21 June 2024)

Income Tax Act 58 of 1962 — section 9D exemption — foreign controlled company — foreign business establishment — meaning of “business” and “primary operations

21 June 2024 – Income Tax Act, 1962

The list of countries that have a current International Agreement in place with South Africa but do not have a Qualifying Competent Authority Agreement in place for purposes of Article 2(2) has been updated

21 June 2024 – Customs and Excise Act, 1964: The draft amendments are proposed to the Customs and Excise Act to include electric vehicles (EVs) and associated components under APDP 2 as follows:

Part 1 of Schedule No. 1 – Substitution of Note 5(a)(ii) and the insertion of tariff subheading 9801.00.03 in Chapter 98

Part 1 of Schedule No. 3 – Substitution of rebate items 317.04 and 317.01/98.01/01.01

Part 2 of Schedule No. 4 – Substitution of rebate items 460.17 and 460.17/00.00/04.00

Due date for comment: 22 July 2024

21 June 2024 – The Radio engagement schedule for Free State and Northern Cape for June 2024 has been updated.
24 June 2024 – The SARS Tariff Determination enhancement project, which includes the publication of Tariff Determinations is divided into two phases: the first phase involves the online processing, issuing and publication of new applications by relevant internal users only, the publication will exclude old cases which were finalised before the implementation of the new system in May 2024. Traders will not be able to submit applications electronically as yet. Electronic submission of new applications by traders will follow in the second phase of the project which is planned for around September 2024. The abridged version of the finalised tariff determinations can be viewed via our search engine from the 1st of July 2024.
24 June 2024 – In the run up to Filing Season 2024, SARS has published the following updated Guides:

Guide to the Individual ITR12 Return for Deceased and Insolvent Estates

How to submit your Individual Income Tax return via the SARS MobiApp

Guide to submit your individual income tax return via eFiling

Comprehensive Guide to the ITR12 Income Tax Return for Individuals

Submit Request for Reduced Assessment (RRA01) via eFiling

Guide to Help-You-eFile

Guide for Provisional Tax

The Personal Income Tax phase of Filing Season 2024 commences with the issuing of auto-assessments from 1 July 2024 up to 14 July 2024. Taxpayers who do not agree with their auto-assessments can file a tax return immediately, while all other taxpayers who are still required to file a tax return will be able to do so from 15 July 2024 onwards, with the exception of Trusts, which can do so from 16 September 2024 onwards. Non-provisional taxpayers who are required to file a tax return, as well as taxpayers in the auto-assessment population who wish to file a return in response to their auto-assessments, have until 21 October 2024 to do so. Provisional taxpayers and Trusts have until 20 January 2025 to file a return.

The updated Guides are outlining the changes and enhancements for this filing season, including but not limited to:

AUTO ASSESSMENT

Taxpayers who are part of the auto-assessment population will receive an SMS and/or email to notify them that an auto-assessment has been issued. An auto-assessment will be based on information available on SARS records and data received from employers, financial institutions, medical schemes, retirement annuity fund administrators and other third-party data providers.

Taxpayers who are in agreement with their auto-assessments do not have to file a tax return or do anything more. Taxpayers who are not in agreement with their auto-assessments can file a tax return in the normal way. SARS will provide each eligible taxpayer with the following information pertaining to the auto-assessment:

An ITR12 return that has been auto completed.

A Notice of Assessment (ITA34)

Note: the type of assessment will indicate ‘original estimate assessment’ to denote that it is an original assessment based on an estimate.

INVESTMENT INCOME FOR SPOUSE

From the 2024 Year of Assessment (YOA) each investment income section on the return will display a sub-section to separately declare investment income received by the spouse and this must be supported by a will and/or antenuptial contract in place to support this declaration. This applies in cases where investment income only accrues to one spouse despite the fact that they are married in community of property.

TAX FREE INVESTMENTS (TFI)

A Tax-Free Investment is a financial instrument; or policy (as defined in section 29A of the Income Tax Act) owned by a natural person or deceased/insolvent estate of a natural person and is administered by a person or entity designated by the Minister of Finance (e.g. banks, long term insurers, national government, collective investment scheme companies).

From 1 March 2024, if an individual’s year of assessment is less than 12 months, the balance of the annual TFI limitation not fully utilised will be carried over to any subsequent year of assessment that falls within the same tax year:

If a taxpayer ceased to be resident and has more than one ‘period’ assessment for the same tax year, the balance of the annual TFI limitation not fully utilised in the first period assessment will be used in the subsequent period assessment.

If a taxpayer was coded as insolvent during the year of assessment, any balance of the annual TFI limitation not fully utilised for tax reference number 1 (coded number) will be used for tax number 3 (new tax number), should the taxpayer declare tax free investment for the same year of assessment.

ALLOWABLE RETIREMENT FUND CONTRIBUTION DEDUCTION

Section 11F(2)(a) of the Income Tax Act was amended. With effect from 1 March 2024, where a person’s year of assessment is less than 12 months, the amount used to calculate the allowable retirement fund contribution deduction (currently R350 000 i.t.o. section 11F(2)(a)) must be proportionate to the number of days in that year of assessment.

SOLAR ENERGY TAX CREDIT

Government introduced a rooftop solar tax incentive for individuals who invest in solar photovoltaic (PV) panels.

The tax credit will only apply to new and unused solar PV panels acquired and brought into use for the first time during the 2024 year of assessment (i.e. 1 March 2023 – 29 February 2024) and that have a minimum generation capacity of not less than 275W each.

The solar PV panels must form part of a system connected to the distribution board of a residence that is mainly (i.e. more than 50%) used by the individual for domestic purposes and an electrical certificate of compliance must have been issued for that residential property (i.t.o. the Electrical Installation Regulations, 2009) after the solar PV panels were installed.

The solar energy tax credit applies to the 2024 year of assessment only and the amount allowed as a deduction will be 25% of the cost of the above solar PV panels up to a maximum of R15 000.

Note: batteries, inverters, fittings or diesel generators, installation costs and portable panels do not qualify.

SARS MOBIAPP

The following enhancements have been made on the SARS MobiApp:

Taxpayers will now be encouraged to download the latest SARS MobiApp version. Where the taxpayer has an older version downloaded, an error message will be displayed on their device.

Taxpayers will now be redirected to their ITA34 once an auto-assessment has been issued.
25 June 2024 – The state provides state warehouses for the safekeeping of goods. These are managed by Customs. The purpose of this list of unentered goods is to notify the importer, exporter and any other person that has interest in the goods that the goods have been taken up into the State warehouse and if they remain unentered they will be disposed in accordance with the provisions of the Customs & Excise Act.

See the latest Customs Weekly List of Unentered Goods here.

26 June 2024 – This year from 1 July 2024 we will again issue auto-assessments to taxpayers whose tax affairs are less complicated. The first thing to do is to log into eFiling or the SARS MobiApp and view your assessment. You will see all the data we used to calculate your assessment.

If you agree with the assessment, check if a refund is due to you or if you owe SARS. If a refund is due, then there is nothing more you have to do — you can log out and wait for the refund, which you can expect within approximately 72 hours, provided your banking details with SARS are correct. If you owe SARS, then make the payment via eFiling or SARS MobiApp on or before the payment due date. The payment due date of the amount owed to SARS is displayed on the “Notice of Assessment” (ITA34).

If you do not agree with the assessment, you can access your tax return via eFiling or SARS MobiApp, complete the return, and file it on or before the normal due date for non-provisional taxpayers of 21 October 2024. If your auto-assessment was issued after 21 October 2024, file within 40 business days after the notice of assessment.

See all the frequently asked questions on auto-assessments here.

26 June 2024 – On Thursday, 27 June, SARS will honour small businesses across South Africa under the theme, “Innovation Waves: Sailing SMMEs to Success”. The theme highlights the power of innovation in driving small businesses’ growth.

The outreach activities are taking place in various regions from 09:00 – 15:00 on 27 June, see the venues per region here.

26 June 2024 – Government introduced a rooftop solar tax incentive for individuals who invest in solar photovoltaic (PV) panels:

The tax credit will only apply to new and unused solar PV panels acquired and brought into use for the first time during the 2024 year of assessment (i.e. 1 March 2023 – 29 February 2024) and that have a minimum generation capacity of not less than 275W each.

The solar PV panels must form part of a system connected to the distribution board of a residence that is mainly (i.e. more than 50%) used by the individual for domestic purposes and an electrical certificate of compliance must have been issued for that residential property (i.t.o. the Electrical Installation Regulations, 2009) after the solar PV panels were installed.

The solar energy tax credit applies to the 2024 YOA only and the amount allowed as a deduction will be 25% of the cost of the above solar PV panels up to a maximum of R15 000.

Note: batteries, inverters, fittings or diesel generators, installation costs and portable panels do not qualify.

Complete the following fields on the return:

‘How many new and unused solar panel(s) were installed?’ (maximum value allowed is 99)

‘Do you confirm that new and unused solar panel(s) were installed with a minimum generation capacity of more than 275 Watts each?’ – (Select Y or N)

‘Do you confirm that the solar panel(s) were connected to the distribution board of a resident that is mainly (more than 50%) used by you for domestic purposes?’ – (Select Y or N)

‘Do you confirm that you received an electrical certificate of compliance issued in terms of Electrical Installation Regulations, 2009, pertaining to this installation?’ – (Select Y or N)