2022 INCOME TAX SEASON

The new tax season for individuals is upon us once again. The 2022 income tax return filing dates for individual taxpayers who file online, that is, through the e-Filing and SARS MobiApp platform and those individual taxpayers who file manually, that is, at the SARS branch, run from 1 July 2022 to 24 October 2022. Whilst for provisional taxpayers who file through the e-Filing platform, SARS MobiApp or SARS branch have their filing dates running from 1 July 2022 to 23 January 2023.

AUTO-ASSESSMENTS

SARS has indicated that a considerable number of individual taxpayers will be auto-assessed once again, and this process will commence on the 1^st of July. An SMS will be sent to those taxpayers who have been selected for an auto-assessment. Where a taxpayer agrees with the auto-assessment, they need not do anything post viewing the assessment. However, should the taxpayer not agree with the assessment, they would have to reject (by clicking on “Edit”) the assessment, complete the return and file within forty (40) business days from the date the assessment was issued to the taxpayer.

TIP 1:
Do not accept SARS auto assessments unless you are 100% happy. Make sure all your claims are included. If SARS has submitted the assessment without you accepting the auto-assessment, you still have 40 days to request an amendment.

TIP 2:
SARS takes no responsibility for an incorrect auto assessment, so do not assume that all information contained there is 100% correct. Taxpayers will be held liable for any mistakes or anything that is missing.

AUTO-REGISTRATIONS

Another notable change SARS has introduced includes auto registration for Personal Income Tax. Where a taxpayer is deemed as required to file a tax return, SARS will automatically register the taxpayer for income tax based on reliable data from third-party sources. Also, for individuals registering for SARS e-Filing for the first time and do not yet have a personal income tax number, SARS will automatically register the taxpayer and issue an income tax reference number. A valid South African ID number is required.

Now is a good time to get your tax matters ready to ensure a smooth filing experience! With a condensed filing season, taxpayers are urged to heed to the below provisions:

• Keep a record of employee tax certificate – IRP5 certificate. If not applicable, ensure you keep record of all year of assessment’s pay/salary slips.
• Keep a record of all third-party data – IT3(b), IT3(c), IT3(e), IT3(s) tax certificates.
• Ensure the travel logbook is complete up until 28 February 2022.
• Should any services be rendered abroad, as requested by the employer, ensure relevant passport copies are available.
• The income tax certificate from the medical aid scheme received for the period 1 March 2021 and ending 28 February 2022 (if you belong to a medical scheme).
• Proof of qualifying medical expenses paid by you and not recovered from a medical scheme.
• Keep a record of all donations made – S18A certificate.
• Make sure all supporting documents such as invoices or statements with regards to business, rental, or other investment income/expenses are kept should SARS request the same.

LATE SUBMISSIONS
Late submissions attract an admin penalty imposed monthly for up to 35 months (in the event SARS has the taxpayers address). The monthly penalty charge starts from R250.00 to R16,000.00 a month, depending on the assessed loss or taxable income of the taxpayer for the year prior to the year being assessed.

The Accounting Village has a team of expert accountants who are also registered tax practitioners that can assist you with all your tax needs. You can view our once-off tax services by clicking here.