In a move that will affect millions of taxpayers across South Africa, the South African Revenue Service (SARS) has announced a series of changes to the Personal Income Tax (PIT) for the upcoming Filing Season 2023. These changes, which range from the extension of the 40 Business Days Rule to the introduction of new fields for foreign income disclosure, are designed to streamline the tax filing process and provide greater clarity for taxpayers.
One of the most significant changes announced by SARS is the extension of the 40 Business Days Rule to coincide with the normal filing due date for non-provisional taxpayers. Introduced last year, the rule initially granted those in the auto-assessment population 40 business days from the issue date of the auto-assessment to revise their return if they needed to amend their auto-assessment.
This year, the 40 business days will extend to the normal filing due date for non-provisional taxpayers, which is 23 October 2023. This change will give those in the auto-assessment population more time to file a return if they wish to edit their auto-assessments.
SARS has also made adjustments to the payment due dates for non-provisional eFilers. For taxpayers who are not in the auto-assessment population, the payment due date will now be 30 days after a notice of assessment has been issued. For those who are auto-assessed, the payment due date will be 30 days post Filing Season 2023 closing date.
Provisional taxpayers with business interests are required to declare their assets and liabilities (based on cost) in their tax returns each year. In a new development, taxpayers who fall within this category, and with assets above R50 million, are now required to declare specified assets at market values on their 2023 tax returns.
SARS has introduced three new fields for taxpayers who must declare worldwide foreign income. These fields are designed to accommodate income sourced from a foreign employer while working in South Africa and/or abroad, which previously did not have an appropriate source code for declaration.
For taxpayers who are married in community of property, SARS has collaborated with the Department of Home Affairs to confirm marital status. Where the spouses are successfully matched and have interest investments, SARS will replicate the interest investment certificate on both spouses’ return where they will be taxed 50% upon assessment.
In a move to increase efficiency and reduce costs for taxpayers, SARS has automated the process of requesting Reduced Assessment in terms of section 93 of the Income tax. The process will use a form called RRA01, which taxpayers will be able to complete on e-Filing.
These changes are expected to have a significant impact on the tax filing process for the upcoming Filing Season 2023. Taxpayers are encouraged to familiarize themselves with these changes and prepare accordingly. For more information, keep an eye on the Filing Season 2023 webpage.
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