Tax Filing season 2023 General Information

1. General

Public Notice 3540 in Government Gazette 48788 relates specifically to income tax returns to be submitted by a person in terms of Section 25 of the Tax Administration Act 28 of 2011. It was promulgated on 14^th June 2023.

2023 year of assessment is defined as the period of 12 months, ended on 28 February 2023, that is from 1 March 2022 to 28 February 2023.

2. Who must submit an income tax return?

1. Every company, or other juristic person, who were resident during 2023 year of assessment and who:

   1. Had gross income of more than R 1 000;

   2. Held assets with a cost of more than R 1 000 or had liabilities of more than R1 000, at any time;

   3. Derived any capital gain or capital loss of more than R1 000 from the disposal of an asset to which the Eighth Schedule of the Income Tax Act applies; or

   4. Had taxable income, taxable turnover, an assessed loss or an assessed capital loss.

2. Every trust who was a resident during 2023 year of assessment;

3. Every company which was not a resident during 2023 year of assessment, but who:

   1. Had a permanent establishment in the Republic and carried on a trade;

   2. Received income from a South African source; or

   3. Had any capital gain, or capital loss from a disposal of an asset, as per the application of the Eighth Schedule of the Income Tax Act;

4. Every company incorporated in the Republic, who was not a resident as a result of the application of any agreement entered into with the Government of any other country for the avoidance of double taxation during the 2023 year of assessment;

5. Every natural person who during 2023 year of assessment:

1. Was a resident and had:

1. carried on any trade in the Republic;

2. had capital gains or capital losses exceeding R40 000;

3. held any funds in foreign currency or owned any assets outside the Republic, if the total value of those funds and assets exceeded R250 000 at any stage during the 2023 year of assessment;

4. any income or capital gains from funds in foreign currency or assets outside the Republic was attributed in terms of the Income Tax Act;

5. held any participation rights, as referred to in section 72A of the Income Tax Act, in a controlled foreign company;

6. had taxable turnover;

7. was under the age of 65 and whose gross income exceeded R91 250;

8. was 65 years or older (but under the age of 75) and whose gross income exceeded R141 250; or

9. was 75 years or older and whose gross income exceeded R157 900;

2. Was a non-resident and had:

1. carried on any trade in the Republic;

2. capital gains or capital losses from the disposal of an asset to which the Eighth Schedule to the Income Tax Act applies;

3. a gross income during the 2023 year of assessment, which included interest from a source in the Republic to which the provisions of section 10(1)(h) of the Income Tax Act do not apply;

6. Every estate of a deceased person that had gross income during the 2023 year of assessment;

7. Every person who is requested by the Commissioner in writing to furnish a return, irrespective of the amount of income or nature of receipts or accruals of the person; and

8. Every representative taxpayer of any person referred to in subparagraphs above.

3. Who is not required to submit an income tax return

1. A natural person or estate of a deceased person is not required to submit an income tax return for 2023 year of assessment if the gross income of the person during the 2023 year of assessment consisted solely of gross income described as:

1. Remuneration paid or payable from one single source, which does not exceed R500 000 and employees’ tax (PAYE) has been deducted or withheld in terms of the deduction tables prescribed by the Commissioner, excluding natural persons, both residents and non-residents, who had received allowances, or advances in terms of section 8(10(a)(i) of the Income Tax Act, as well as taxable benefits as defined in the Seventh Schedule to the Income Tax Act, or who had received any amounts for services rendered outside the Republic.

2. Interest (other than interest from a tax free investment) from a source in the Republic not exceeding:

(i) R23 800 in the case of a natural person below the age of 65 years at the end of the year of assessment;

(ii) R34 500 in the case of a natural person aged 65 years or older at the end of the year of assessment; or

(iii) R23 800 in the case of the estate of a deceased person.

(c) Dividends received by a non-resident natural person;

(d) Amounts received or accrued from a tax-free investment; and

(e) A single lump sum received from a pension fund, provident fund, pension preservation fund, provident preservation fund or a retirement annuity fund, and tax has been deducted or withheld in terms of a tax directive issued by the Commissioner.

3.2. Natural persons, both residents and non-residents, who had been notified by SARS that:

(a) they are eligible for automatic assessments; and

(b) their gross income, exemptions, deductions and rebates reflected in the SARS records are complete and correct as at the date of the assessment based on an estimate to give effect to automatic assessment.

4. Periods for the submission of the income tax returns

4.1. Companies must submit income tax returns within 12 months from the date on which its financial year ends; and

4.2. All other persons, including natural persons, resident trusts and other juristic persons:

(a) From 7 July 2023 until 23 October 2023; and

(b) From 7 July 2023 until 24 January 2024 if the income tax return is for a provisional taxpayer and it is submitted on eFiling.

5. How to submit income tax returns

5.1. Companies must submit income tax returns electronically, on eFiling;

5.2. Natural persons and trusts must submit income tax returns electronically:

(a) on eFiling; or

(b) through the assistance of a SARS official at an office of SARS.

5.3. Other juristic persons, such as institutions, boards or bodies, must submit income tax returns electronically on eFiling, through assistance of a SARS official at a SARS branch, posted to SARS, or delivered to an office of SARS, other than an office which deals solely with matters relating to customs and excise.

5.4. Returns for turnover tax must be forwarded by post to SARS or delivered to an office of SARS, other than an office which deals solely with matters relating to customs and excise.

5.5. SARS may agree that a person, who is required to submit a return in the manner prescribed above, may submit the return in an alternative manner.

Source: GG Notice 48788, 14 June 2023, SARS Public Notice NO. 3540

https://www.sars.gov.za/wp-content/uploads/Legal/SecLegis/Legal-LSec-TAdm-PN-2023-04-Notice-3540-GG-48788-Notice-to-furnish-returns-2023-14-June-2023.pdf