SARS GENERAL MATTERS

1.        SARS Commissioner elected as Chairperson of WCO

SARS Commissioner Edward Kieswetter has been re-elected as Chairperson of the World Customs Organisation (WCO) for 2024-2025. He will focus on using technology to improve trade, ensure safety, and fight illegal trade activities. His re-election underscores his commitment to promoting global economic and social well-being through customs unity.

2.        Tax Filing Season 2024

• Start Dates

  The 2024 Filing Season for provisional and non-provisional taxpayers begins on 15 July 2024.

  Auto-assessments will be issued from 1 to 14 July 2024 for an expanded pool of taxpayers.

• Update Personal Details

Get ready for the filing season, visit the SARS website and read more on how to get up to date.

• Verify and update banking details

To ensure a smooth process and to help prevent fraud and identity theft, taxpayers are urged to update their contact and banking details before the filing season on eFiling or on the SARS MobiApp. For more information, view the full media release or read on the SARS website.

Refunds are deposited automatically into the bank account of the taxpayer. The bank details included in the eFiling must be correct. To confirm the information log into sarsefiling.co.za. Update any outdated information through the 'Maintain SARS Registered Details' section. If you've forgotten your eFiling login details, reset them via the 'Forgot Username' or 'Forgot Password' pages. To change security contact details and more guidance, visit the SARS website and check the 'Filing Season 2024' page for deadlines and updates.

• Changes relating to the filing season

For the upcoming Personal Income Tax Filing Season, SARS has introduced several updates:

• Pro-Rata Deduction for Retirement Funds: If the tax year is less than 12 months, the maximum deduction for retirement contributions (currently R350,000) will be adjusted proportionally based on the number of days within the tax year.

• Tax-Free Investment Adjustments: Contribution limits for tax-free investments (currently R36,000 per year) will also be adjusted pro-rata if the tax year is shorter than 12 months.

• Urban Development Zone Deductions: Deductions for the erection or improvement of buildings in urban development zones are now extended to 31 March 2025.

• Solar Energy Tax Credit: A temporary tax credit was available for individuals investing in new solar PV panels, providing a deduction of 25% of the cost, up to R15,000. This credit was applied from 1 March 2023 to 29 February 2024.

• Renewable Energy Production Incentive: The redesigned incentive under section 12BA applies to certain new machinery and equipment used in renewable energy production, with a 125% upfront deduction of the cost, valid until 1 March 2026.

• ITR12 Form Redesign:  SARS has redesigned the s10(1)(o)(i) and s10(1)(o)(ii) questionnaire to make it easier for taxpayers to complete the return. Changes were made to simplify the filing process, especially regarding foreign employment income exemptions and beneficial owner information.

• Note to Tax Practitioners: Practitioners are reminded to ensure that the contact information section of ITR12 forms accurately reflects the individual taxpayer’s details, not those of the practitioner.

3.        Trade Statistics – May 2024

In May 2024, South Africa recorded a significant trade surplus of R20.1 billion in May 2024, driven by exports worth R178.4 billion against imports of R158.3 billion. This marks a steady improvement over the year, with a cumulative surplus of R45.2 billion from January to May 2024. For additional insights, visit the Trade Statistics webpage or read the full media release.

On a year-on-year basis, export flows for May 2024 were slightly lower by 2.4% compared to last year, while imports decreased by 7.3%.

From April to May 2024, exports rose by R9.6 billion (5.7%), mainly driven by increases in iron ores, manganese ores, platinum group metals, citrus fruits, and vehicles. Imports slightly declined by R0.8 billion (0.5%), primarily due to reduced imports of petroleum oils (excluding crude) and wheat and meslin.

4.        Tax Workshops and Mobile Tax Unit Schedules

See the July 2024 tax workshop schedule for Limpopo and in the North West Klerksdorp, Mmabatho and Rustenburg.

Mobile tax units will be available during July 2024 in Limpopo the Western Cape, and in the Eastern Cape. Click here to see the services and documents you need to take.

5.        New Scam alerts

New scams are doing the rounds talking of outstanding tax payments and tax refunds.  DO NOT OPEN the links and delete the emails immediately. Examples of these scams were published on the Scams & Phishing webpage.

LEGAL MATTERS

The new Revenue Laws Amendment Act 2024 introduces several important changes to pension and provident funds regulations:

• Updated Definitions: Clarifications and updates to definitions related to retirement, savings, and vested components of funds.

• Annuity Rules: Modifications to rules on how annuities are paid and conditions under which members can convert parts of their retirement interest into lump sums.

• New Fund Components: Introduction of distinct 'savings', 'retirement', and 'vested' components within funds for better fund management.

• Provisions for Non-Residents: New guidelines for non-residents and emigrants regarding access to lump sum benefits from retirement funds.

• Flexible Withdrawal Conditions: Enhanced flexibility and clearer conditions for fund withdrawals, tailored to modern financial needs.

6.        Travel Manifest Submissions

Fill in your Travel Manifest Submissions online and submit it directly through the SARS Online Query System (SOQS).

NEW AND UPDATED GUIDES

7.        Verification of Banking Details

The external guide and webpage have been updated to clarify the identification requirements when verifying banking details. The wording now reads:

“A copy of your valid identity document, driver's license, passport, temporary identity document, asylum seeker’s certificate or permit. For online submission, attach a copy. If you are visiting a SARS office, bring a copy and the original identification document.”

See the updated Change of Banking Details – External Guide and the updated website: Relevant Material or Supporting Documents.

8.        New Guides on Individual Tax

Find the newly updated guides below:

• Guide on Income Tax and the Individual (2023/24)

• Guide on the Determination of Medical Tax Credits (Issue 16)

CUSTOMS AND EXCISE NEWS

9.        Tariff Amendments

The following tariff amendments were made during June:

• Photovoltaic Cells: Effective 28 June 2024, Schedule No. 4 has been updated (GG 50892, R.5017) to include a temporary rebate for importing photovoltaic cells, assembled in modules or panels, facilitating renewable energy initiatives (ITAC Report 723).

• Air Conditioning Machines for Vehicles: Amendments to Schedule No. 3 (GG 50892, R.5016) on 28 June 2024, replace rebate item for air conditioning machines in heavy motor vehicles, promoting manufacturing adjustments (ITAC Report 627).

• Increased Customs Duty on Solar Panels: From 28 June 2024, the customs duty for crystalline silicon photovoltaic modules or solar panels is increased to 10%, as per Schedule No. 1 amendment (GG 50892, R.5015) to support domestic industries (ITAC Report 613).

• Refund Item Update: A revision in Schedule No. 5 (GG 50771, R.4955) from 7 June 2024 inserts a new refund item, enhancing compliance and refund processes.

10.   Customs updated policy – Staged Consignment

The policy on staged consignments was revised to include timelines of the application process. This will assist traders in submitting staged consignment applications on time, thus preventing delays. The following specific updates have been done:

• The period granted from the date of issue of the staged consignment approval letter

• The application for an extension

• Handling of damaged goods

• Goods that are not covered.

Read the External Policy on Staged Consignment for more information.

11.   Draft amendments to the Customs and Excise Act for comments

Draft amendments to the Customs and Excise Act, published on 28 June 2024, propose several key changes to the tariffs and provisions:

• Schedule No. 1 Part 1: Insert new 8-digit tariffs for mangoes, dried grapes, and pomegranates in Chapter 8.

• Schedule No. 3, No. 4 and No. 5: Remove the outdated provisions of the Automotive Production and Development Programme (APDP I).

Comments are to be recorded on the Customs & Excise Tariff Amendments Comment Sheet by 26 July.

UPCOMING DEADLINES

12.   Filing season 2024

The dates for the 2024 Filing Season are:

• Individual taxpayers (non-provisional): 15 July 2024 to 21 October 2024

• Auto-assessment notices: 1 – 14 July 2024

• Provisional taxpayers: 15 July 2024 to 20 January 2025

• Trusts: 16 September 2024 to 20 January 2025

More information will soon be shared on the Filing Season webpage.

First provisional tax payments for the 2025 tax year: 31 August 2024

Third-party data submissions: The closing date for IT3(t) submissions is 30 September 2024.