SARS

31 January 2025 – Income Tax Act, 1962

Interest Rates Table 3 – Rates at which interest-free or low interest loans are subject to income tax

31 January 2025 – The South African Revenue Service (SARS) thanks provisional taxpayers and Trusts for filing their annual Income Tax Returns for the 2024 tax year.

The filing season for provisional taxpayers and trusts closed on the 20^thJanuary 2025. There overall picture of provisional, trusts and non-provisional taxpayers is the following:

Since the opening of the filing season 543 252 provisional taxpayers had filed their annual Income Tax Returns for the 2024 tax year, this is 4.76% up from the 517 356 in the 2023 tax year.
Additionally, taxpayers also filed returns that were outstanding from prior tax years. In total 162 690 provisional taxpayers filed returns for the previous years this is down from 242 911 in the 2023 tax year. The ultimate total is 705 942 provisional taxpayers filed their returns.
As for Trusts, we received returns from 84 134 taxpayers for the 2024 tax year, which is up from 68 890 for the previous tax year. Moreover, there was 80 132 Trusts return for previous years resulting in the overall total of 164 266 of Trusts.
The number of non-provisional taxpayers who filed their Income Tax Returns and those automatically assessed stands at 6 797 055. 4 765 753 were auto- assessed for the 2024 tax year, which is 24.94% up from 3 577 239 from the previous year. As reported before, these taxpayers did not have to do anything, and SARS used vast data sources to auto-assess them and provide and outcome for them.

There is general increase in the number of provisional taxpayers and trusts filing returns. This is encouraging however there is still a long way to go to ensure acceptable levels of compliance in these categories of taxpayers. There is noticeable increase on the filing of returns by non-provisional taxpayers. This comprises the use automatic assessment for non-provisional taxpayers as well those who independently file their returns. This reflects general increase in compliance in this category but undoubtedly, there is still long way to declare that every taxpayer who is supposed to file their return is dutifully fulfilling their legal obligation. Increasingly, SARS will focus in encouraging voluntary compliance in these categories of taxpayers.

In line with its strategic objectives, SARS is fundamentally committed to provide clarity and certainty to enable taxpayers to fulfil their legal obligations. SARS is working to make it easy and simple for taxpayers to transact with the organisation through online platforms such as eFiling. SARS is also making it hard and costly for taxpayers who deliberately do not comply with tax law. SARS and taxpayers each plays a critical role in South Africa’s public finances. All categories of taxpayers including Trusts, and even economically inactive ones, must register for tax, file returns, and pay on time. Non-compliance with tax law is a criminal offence and will attract penalties and interest.

The representative taxpayers of Trusts should keep in mind that they are legally liable in their official and personal capacity to meet their Trusts’ tax obligations, even when using a tax practitioner to administer the Trusts’ tax affairs. SARS will hold all the trustees of a Trust jointly and individually liable for their Trusts’ tax compliance. SARS Commissioner, Edward Kieswetter, expressed his gratitude to all taxpayers who have taken steps to fulfil their legal obligations. He said that “while SARS is pleased with the general increase in compliance, it is too early to declare victory. In this regard, SARS will continue to employ the latest technology, artificial intelligence, and data science to foster voluntary compliance by ensuring that transacting with the organisation is an effortless and seamless experience that will lessen compliance burden. This will comport with SARS’s overall mission to realise our promise that ‘the best service is no service at all’”. SARS is doing the utmost to pursue its vision of being a smart, modern SARS with unquestionable integrity that can be trusted and admired by all.

For more information, please contact SARSMedia@sars.gov.za

31 January 2025 – Prohibited and Restricted Imports and Exports list

Tariff heading 8507.60 does not require a Letter of Authority

31 January 2025 – South Africa recorded a preliminary trade balance surplus of R15.5 billion in December 2024. This surplus was attributable to exports of R160.0 billion and imports of R144.6 billion. See the full media release here. Or visit the Trade Statistics webpage.

31 January 2025 – In the January 2025 issue we kick off with a gentle reminder to taxpayers to ensure that they only use registered tax practitioners. In this issue we also provide useful information about tax exempt institutions and an update on the latest scam about refunds on assessments. We explain the Medical Indemnity insurance and the tax implications of such and provide a brief overview of the latest enhancements to the SARS MobiApp. Please note that SARS is now issuing the Notice of Registration (IT150) through the SARS WhatsApp number and finally, should you have a Trust registered or planning to have a Trust registered, access the latest videos on Trusts to learn more

31 January 2025 – In the January 2025 issue we kick off with a gentle reminder to taxpayers to ensure that they only use registered tax practitioners. We also provide an update on the latest scam about refunds on assessments and highlight the Medical Indemnity insurance and the tax implications of such. We provide brief overview of the latest enhancements to the SARS MobiApp, and finally, please note that SARS is now issuing the Notice of Registration (IT150) through the SARS WhatsApp number.

31 January 2025 – The South African Revenue Service (SARS) wishes to announce that to date it has received 2,664 279 applications for tax directives for withdrawals from the Savings Withdrawal Benefit of the two-pot system. Of the total number of applications, 2 403 379 tax directives were approved for funds to be released. The remainder were declined for a variety of reasons, including incorrect Identity Numbers, incorrect tax numbers, amongst others.

A total gross lumpsum of R 43.42 billion has been paid out to date. In line with SARS’ intent for taxpayers to use digital channels, SARS is happy to announce that the simulated WhatsApp calculator was used 90 283 times since implementation of the process. The simulated calculator on the SARS website, which forms part of the SARS Online Query System, has been used 952 403 times. SARS has also received 128 802 and queries through the voice channel, and 24 278 at branches. Taxpayers are encouraged to continue to use the digital channels, which are simple, easy and user-friendly. Using these channels means taxpayers do not have to leave their homes or places of employment to stand on undignified queues.

SARS would like to thank retirement fund management entities for their friendly and professional co-operation that has allowed SARS to play its part effectively and efficiently by speedily issuing the volumes of tax directives needed to date. SARS reminds taxpayers who want to apply for a withdrawal to make sure that they verify their tax numbers, have supplied the correct Identity Numbers and that they do not have any outstanding debt with SARS. After a registered taxpayer has applied, a successful tax directive informs the fund management how much tax to deduct from a withdrawal. Directive applications are accepted by SARS 24/7 and processed within an hour 365 days a year from 8:00 to 19:00. Unless a directive application is submitted outside of these hours, the response if the taxpayer is compliant be sent to the fund within an hour.

Before a final amount is paid to the applicant, the pension fund will be informed to also deduct any outstanding debt on behalf of SARS before any payout is made to the member. If a person has a debt arrangement with SARS, the withdrawal will not be affected. If there is a debt owed to SARS, it will be deducted in terms of such arrangement.

Taxpayers are reminded that tax will be imposed on a withdrawal at a marginal tax rate ranging between 18%-45% depending on their scales. Despite this public information, there are taxpayers who are wilfully understating their incomes. SARS Commissioner Mr Edward Kieswetter said that “SARS is deeply concerned that 213 654 taxpayers have been identified where they have declared incorrect taxable income with the view to have a more favourable tax rate. If a taxpayer understates their income, they are intentionally involved in evading their tax obligation. A penalty will be imposed on taxpayers who have understated income. I wish to caution taxpayers to refrain from this unbecoming conduct that borders on criminality. There are real consequences for this behaviour”. For more information, please contact SARS at SARSMedia@sars.gov.za

31 January 2025 – Customs and Excise Act, 1964: Extract from the Taxation Laws Amendment Act 42, 2024, in which the following amendments, relating to the Customs and Excise Act, 1964 are published:

Amendment to Parts 1, 2A, 5A and 5B of Schedule No. 1 – see clauses 41.(1) – 41.5(b)
Amendment to Part 4 of Schedule No. 4 – see clauses 42.(1) – (3)
Amendment to Part 4 of Schedule No. 5 – see clauses 42.(1) – (3)
Amendment to Part 1F of Schedule No. 6 – see clauses 44.(1) – (3)

The effective dates are specified in clauses 41–44

3 February 2025 – 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.