2023 INDIVIDUAL TAX SEASON NOTICE – DON’T BE LATE

Written by Luke Victor on 12 June 2023. Info source: sars.gov.za

“At tax time, it helps to remember that if your tax obligation has increased from the previous year, it’s usually because you’re enjoying more income. That’s a situation to which most of us aspire. Higher taxes are a price that we pay for greater success.” — Richard Carlson

SARS has release the opening date for the individual tax season for the 2023 tax year (1 March 2022 to 28 February 2023). The opening date of the 2023 tax season is 7 July 2023. The deadline has not be communicated by SARS as of yet and they said they will provide the deadline date at a later stage.

We will send out another notice once SARS releases the deadline date.

2023 INDIVIDUAL TAX SEASON SPECIALS

TAX SEASON SPECIAL

15% Off

SIMPLE TAX RETURNS: R1,000.00 Now R850.00 – Save R150.00

COMPLEX TAX RETURNS: From R1,150.00 Now R1,000.00 – Save R150.00

Simple tax returns comprise of an IRP5, Medical Aid and Retirement Annuity/Pension Fund.
Complex tax returns will need to be quoted on a case by case basis. Additional deductions charged at R350.00 each, with the special applied, only R305.00 each.

Special ends at 4pm on 4 August 2023. (Return needs to be submitted before the special end date)

“It takes as much energy to wish as it does to plan.” —Eleanor Roosevelt

Are You Required to Submit Your Tax Return?

Yes, anyone who earns income during the year is legally required to submit annual income tax return (ITR12) to SARS, declare all their income for the year and claim deductions on their taxes.

If you are under the tax limit, you are still required to submit a tax return, but no amount will be due to SARS.

• • If you are under 65 years of age, the tax limit for 2023 is R95,700.00 total income for the year (about R7,975.00 per month).
  • For persons aged 65 to 74, the tax limit is R148,200.00 total income for the year (about R12,350.00 per month).
  • And for persons 75 years and older, the tax limit is R165,680.00 total income for the year (about R13,806.00 per month).

If you pay PAYE on your salary, by submitting your income tax return you could earn a refund from SARS and save some money. (Advice – having a medical aid and paying a retirement annuity/pension fund assists with higher rebates and a higher chance of receiving a refund)

Auto-Assessments

Some taxpayers will have their tax returns auto-assessed by SARS according to the 3rd party data they recevie. This 3rd party data is the IRP5 from employers, tax certifcates from medical aid institutions and tax certificates from financial institutions for interest earned and contributions to a retirement annuity or pension fund.

With auto-assessment, SARS prepares the tax return on behalf of the taxpayer. The taxpayer will then receive either an SMS or email form SARS that they have been auto-assessed. The taxpayer then has 40-working days to review the assessment from SARS. If the taxpayer is happy with the auto-assessment, they can leave it and SARS will then finalise it after the 40-working days and the return will be completed. If the taxpayer does not agree with the auto-assessment, they would need to file a new return with the correct details and SARS will then make the changes if they are necessary.

Always check your auto-assessment as SARS could have missed some important details that could earn you a refund.

When SARS does the auto-assessments, they do not do the deductions for the taxpayers and the 3rd party data could be incorrect. The taxpayers themselves need to do the deductions and ensure the 3rd party data is correct.

If you are uncertain about your tax return or auto-assessment, get help from a Tax Practitioner as they can advise and assist with questions.

Tax Penalties

As of December 2022, SARS changed the way they penalise taxpayers for not submitting their tax returns or submitting them late.

They used to charge a flat rate penalty for missing the tax return deadline, but after December, they now charge penalties that recur every month the return is outstanding. This has greatly affected taxpayers who did not submit their returns in time.

Be sure to submit your 2023 tax return before the deadline to prevent unnecessary penalties from SARS.

Tax Season can be stressful so let us take the stress off you and submit and check your returns for you!

Luke Victor

BA(SA), ICB Financial Accountant
The Tax Shop Alberton

More about Luke Victor

Luke obtained a diploma as a Financial Accountant with ICB and is a registered member of SAIBA with relevant experience. He also has experience working in IT and Software Testing and Training.

Xero & Quickbooks Certified