Tax season is officially open – how to file a tax return, and what’s changed for 2024

The South African Revenue Service (SARS) has officially opened tax season 2024, with the two-week pre-season auto-assessment rollout window now closed.

Taxpayers who have not received an auto-assessment—or who did not accept the assessment from SARS—will not be required to manually file an ITR12 tax return.

Key filing dates

Taxpayers are required to submit a tax return to SARS so that the revenue service can calculate their tax liability based on the income they declare and the tax-deductible expenses they have incurred for a year of assessment.

In some cases, the process may result in a refund to the taxpayer—in other cases, taxpayers might be liable for additional tax payments to SARS.

Taxpayers can complete and submit a tax return to SARS via the following channels:

• eFiling on your computer – by registering for eFiling at www.sarsefiling.co.za
• The SARS MobiApp from which you can complete and submit your Income Tax Return (ITR12).
• Filing electronically at a SARS branch where an agent will assist you
• Requesting a return to be posted to you and completing your return manually and submitting it at a SARS branch.

SARS favours the first two approaches, and has been working to make it easier to file electronically over the years.

If taxpayers need to go to a branch, they must remember to bring along all supporting documentation – and to make an appointment​ before going in.

Various tax practitioners have warned that this is the slowest process, with earliest available bookings only in August.

According to SARS, when completing your return, taxpayers need to have supporting documents at hand.

Some of these documents include:

• Your IRP5/IT3(a) certificate(s) which you will receive from your employer
• Medical certificates, as well as documents required for amounts claimed in addition to those covered by your medical aid.
• Pension and retirement annuity certificates
• Your banking details
• Travel logbook (if you receive a travel allowance)
• Tax certificates that you received in respect of investment income (IT3(b))
• Completed confirmation of diagnosis of disability (ITR-DD – Confirmation of Diagnosis of Disability – External Form), where applicable
• Information relating to capital gain transactions, if applicable
• The approved Voluntary Disclosure Programme (VDP) Agreement between yourself and SARS for years prior to 17 February 2010, where applicable
• Financial statements, e.g. business income, where applicable
• Any other documentation relating to income you received or deductions you want to claim.

Not only is it important for these documents to be kept for the year of filing, SARS recommends that they be kept for at least five years, in case the service needs the information in the future.

Taxpayers should also be mindful that if they have outstanding tax returns older than five years, they will be required to book an appointment to regularise their tax affairs at a branch.

Tax changes for 2024

In addition to the typical documentation above, SARS has also noted some changes specifically for 2024.

• There is now a pro-rata deduction in respect of contributions to Retirement Funds, meaning if any person’s year of assessment is less than 12 months, the allowable retirement contribution deduction (currently R350,000) will be applied proportionally.

• There is a similar deduction for tax-free savings: if any person’s year of assessment is less than 12 months, the applicable contribution limitation (currently R36,000) will also be applied proportionally.

• The rooftop solar tax credit that was in effect between 1 March 2023 to 29 February 2024 is also applicable to this tax year – so any individual (not applicable to a deceased estate) who took advantage of that can claim back 25% of the cost of the solar PV panels up to a maximum of R15,000.

Not everyone needs to file a return

Individual taxpayers who have been auto-assessed by SARS and have accepted it do not need to file a tax return.

However, if you have not accepted the auto-assessment, you will need to file a tax return before the closing date.

A natural person or deceased estate is also not required to submit a return if the person’s gross income consists solely of one or more of the following:

• Remuneration (other than retirement lump sums) not exceeding R500,000 from a single source and employees’ tax has been withheld in respect of that remuneration;

• Interest income from a South African source (excluding a tax-free investment) not exceeding R23,800 for a person younger than 65; R34,500 for a person who is 65 years or older; or R23,800 for a deceased estate.
• Tax exempt dividends where the individual was a non-resident throughout the year of assessment;

• Amounts received or accrued from tax-free investments; and

• A single lump sum received from a pension fund, provident fund, pension preservation fund, provident preservation fund or retirement annuity fund and tax has been deducted in terms of a tax directive.

The above does not apply to individuals in the following circumstances:

• If paid or granted certain allowances / advances relating to business travel, accommodation or subsistence;

• If granted taxable benefits or advantages derived by reason of employment or the holding of any office; or

• If any amount was received or accrued in respect of services rendered outside South Africa.

Read: Tax warning for businesses in South Africa after R800 million blow to SARS