Warning over tax deadline hitting this month

The South Africa Reserve Bank (SARB) has reminded taxpayers that the due date for its Third Party Data Annual Submissions for 2023 will close at the end of this month.

According to the taxman, submissions for the period between 1 March 2022 – 28 February 2023 will close on 31 May 2023.

“Submissions in respect of data files and declarations of the various reportable data types are now due,” said SARS.

SARS reported that by the morning of Thursday (11 May), the group had only received 35% of the expected submissions for this period.

This is worrisome, given that only three weeks are left until the due date.

SARS has now encouraged taxpayers to make submissions ahead of the due date to avoid last-minute challenges and potential delays that may be encountered.

By South African law, third parties such as banks, medical schemes, fund managers and more are obligated to submit information or data to SARS through a tax return.

“This means that a bank, for example, must provide information to SARS pertaining to the interest paid on savings in taxpayer’s accounts.”

“Medical Schemes are also required to send information on the total contributions made by individuals, expenses not covered by the Medical Aid as well as the number of dependants.”

The tax authority provided the following list of persons (third parties) that need to send information to SARS. It includes but is not limited to:

• Attorneys
• Banks (including Mutual banks)
• Companies listed on the JSE that issue bonds, debentures or financial products
• Co-operatives as well as any other person who purchases livestock, produce, timber, ore, mineral or precious stones from a primary producer other than for retail purposes.
• Co-operative Banks
• Estate agents
• Financial Institutions (such as Long-term insurers, Pension funds and
• Collective investment schemes)
• Medical Schemes
• Organs of state that issue bonds, debentures or financial products
• Postbank
• State-owned companies that issue bonds, debentures or financial products
• Any person who pays an amount of interest to or for the benefit of a foreign person (to the extent that it is regarded as being from a source in SA)
• SA resident companies, foreign resident companies whose shares are listed on the JSE, and regulated intermediaries paying dividends/foreign dividends
• Reporting institutions as described in the FACTA agreement.

Read: SARS cracks the whip on tax compliance – and it’s making life more difficult for these taxpayers