{"id":768263,"date":"2024-04-17T08:57:53","date_gmt":"2024-04-17T06:57:53","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=768263"},"modified":"2024-04-17T08:59:54","modified_gmt":"2024-04-17T06:59:54","slug":"critical-tax-deadline-fast-approaching-a-first-for-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/768263\/critical-tax-deadline-fast-approaching-a-first-for-south-africa\/","title":{"rendered":"Critical tax deadline fast approaching &#8211; a first for South Africa"},"content":{"rendered":"\n<p>Section 18A-approved Public Benefit Organisations (PBOs) must start sending the South African Revenue Service (SARS) third-party data. <\/p>\n\n\n\n<p>According to Independent Trust &amp; Fiduciary Services expert, Roxshanna du Toit, IT3 reporting sees third parties, such as medical aid schemes, employers and banks, sending SARS certain prescribed data called &#8220;third party data.&#8221;<\/p>\n\n\n\n<p>The data is sent to SARS in the form of tax certificates, which SARS then uses in their assessments of various taxpayers. <\/p>\n\n\n\n<p>These certificates differ per industry, with medical aid schemes submitting medical aid tax certifications, while employers will submit IRP5 tax certificates. <\/p>\n\n\n\n<p>The annual third-party data submission season <strong>starts in April and closes on 31 May each year<\/strong>. In some cases, third parties must submit certificates bi-annually.<\/p>\n\n\n\n<p>Section 18A-approved PBOs have now been added to the list of third parties required to submit third-party data to SARS through the submission of IT3(d) tax certificates. <\/p>\n\n\n\n<p>For taxpayers, donations made to section 18A-approved organisations are one of the ways that South Africans can lower their tax bill &#8211; limited to 10% of a taxpayer&#8217;s income. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"oiZhuq3omi\"><a href=\"https:\/\/businesstech.co.za\/news\/finance\/702269\/how-to-lower-your-tax-bill-in-south-africa\/\">How to (legally) lower your tax bill in South Africa<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;How to (legally) lower your tax bill in South Africa&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/finance\/702269\/how-to-lower-your-tax-bill-in-south-africa\/embed\/#?secret=pQvg7qUpTZ#?secret=oiZhuq3omi\" data-secret=\"oiZhuq3omi\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Understanding the change<\/strong><\/p>\n\n\n\n<p>In October 2021, the Financial Action Task Force (FATF) found major gaps in South Africa\u2019s anti-money laundering and counter-terrorism financing laws.<\/p>\n\n\n\n<p>One of the FATF&#8217;s recommendations was that South Africa enhance beneficial ownership transparency and improve its ability to detect illegal flows of money.<\/p>\n\n\n\n<p>Although South Africa signed the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act in December 2022, the nation was still greylisted in early 2023, making it harder for financial institutions to conduct international business. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"CWsLJGGr6V\"><a href=\"https:\/\/businesstech.co.za\/news\/finance\/751546\/two-sectors-holding-south-africa-back-from-getting-off-the-grey-list-and-time-is-running-out\/\">Two sectors holding South Africa back from getting off the grey list &#8211; and time is running out<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Two sectors holding South Africa back from getting off the grey list &#8211; and time is running out&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/finance\/751546\/two-sectors-holding-south-africa-back-from-getting-off-the-grey-list-and-time-is-running-out\/embed\/#?secret=zfMT94Niyf#?secret=CWsLJGGr6V\" data-secret=\"CWsLJGGr6V\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>With the nation&#8217;s push to get off the greylist, PBOs have not been spared by SARS. <\/p>\n\n\n\n<p>&#8220;IT3(d) reporting has therefore been introduced as a mechanism by SARS in preventing money laundering and terrorist financing through PBO entities,&#8221; said Du Toit. <\/p>\n\n\n\n<p>Thus, Section&nbsp;18A&nbsp;PBOs will be required to submit IT3(d) tax certificates&nbsp;to SARS by the end of May. <\/p>\n\n\n\n<p>All Section 18A-approved PBOs that issued Section 18A tax-deductible receipts to their donors from 1 March 2023 to 29 February 2024&nbsp;will be responsible for this reporting. <\/p>\n\n\n\n<p>&#8220;If\u00a0a PBO\u00a0has not issued any S18A receipts for this\u00a0period, they must\u00a0still\u00a0submit a NIL IT3(d)\u00a0declaration\u00a0to SARS, said Du Toit.<\/p>\n\n\n\n<p>&#8220;Failure to comply puts their special S18A approval with SARS at risk, as the PBO is no longer SARS compliant.&#8221;<\/p>\n\n\n\n<p>&#8220;These&nbsp;are serious consequences for any PBO as their SARS approval is critical for their continued tax&nbsp;exemption&nbsp;status.&#8221;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/768234\/dark-clouds-gather-for-south-africa-as-imf-cuts-growth-outlook\/\">Dark clouds gather for South Africa as IMF cuts growth outlook<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Africa is desperately trying to get off the Financial Action Task Force&#8217;s grey list, and charities are now in the crosshairs of the taxman.<\/p>\n","protected":false},"author":95,"featured_media":736439,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-768263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/768263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=768263"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/768263\/revisions"}],"predecessor-version":[{"id":768278,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/768263\/revisions\/768278"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/736439"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=768263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=768263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=768263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}