SARS, the South African Revenue Service, has announced the commencement of the Individual Filing Season for the year 2023. Employed and self-employed individuals are required to file their tax returns between 7th July and 23rd October 2023.
SARS is focused on modernizing its systems to offer a seamless online digital experience for taxpayers through various digital channels. One such channel is the free USSD service, which allows taxpayers to check if they need to file an annual Income Tax Return (ITR12) for the tax year 2022/2023 by dialing 1347277# and selecting Option 3 on their cellphone.
Taxpayers who have been auto-assessed were notified between 1st and 7th July 2023 via SMS or email. If they agree with the auto-assessment, they don’t need to take any further action as SARS has already processed their return. However, if they disagree, they have until 23rd October 2023 to amend and file their return.
For taxpayers who were not auto-assessed, they can access their tax return through eFiling or the SARS MobiApp, complete or amend it, and submit. They are required to declare all income received and claim expenses accurately.
Some specific guidelines for taxpayers to consider include:
Investment Income Declaration: Interest on investment income must be declared on the ITR12 return. Local interest is pre-populated with Third Party data, while foreign investment income needs to be manually entered.
- Commission Income: Taxpayers can claim expenses related to earning commission income, excluding capital or personal expenses if the commission income is more than 50% of their total remuneration.
- Medical Aid Expenditure: Taxpayers need to complete the medical section of the ITR12 return and declare any additional medical expenses not covered by the medical aid, expenses for disabled individuals, and contributions to a medical aid scheme for other beneficiaries.
- Travel Expenses: Taxpayers can claim a deduction for using their private motor vehicle for business purposes if they have a valid logbook and receive a travel allowance from their employer or principal. Travel between home and the usual place of work cannot be claimed for business purposes.
- Home Office Expenses: Taxpayers can claim home office expenses if they meet the requirements specified in the Income Tax Act, including sections 11(a), 23(b), and 23(m). Additional information and a confirmation letter from the employer might be necessary for audit purposes to support the claim.
The deadline for filing tax returns is 23rd October 2023, and it is essential for individuals to take responsibility for their tax matters and ensure compliance by submitting their returns on time.
