The South African Revenue Service (Sars) tax filing for the 2024 year started on 15 July (for income earned the period 1 March 2023-29 February 2024). Individual taxpayers who were not auto-assessed and not registered as provisional taxpayers have until 21 October to submit their income tax returns (ITR12).
Those also registered for provisional tax have until 20 January 2025 to do so.
Failure to submit a return on time will result in monthly non-compliance penalties being levied by Sars.
In terms of the Tax Administration Act, the onus is on the taxpayer to verify that all information is correct, and that all income has been declared.
If you dispute the information on the return, you will have to submit a return, which will then replace the auto-assessed return. You can access and submit your income tax return by logging into your tax profile with your unique username and password using Sars eFiling or on the Sars MobiApp on your smartphone.
Some reasons you must submit a return instead of accepting the auto-assessed return include the following:
- Not all income has been declared (remember, a South African resident is taxed on worldwide income, whereas a non-resident is only taxed on South African-source income).
- You wish to claim deductions that were not initially included in the return (such as other qualifying medical expenses paid, or expenses incurred while carrying on another trade).
With Sars using various methods to detect tax evasion, such as obtaining information from third parties, performing audits (including lifestyle audits), and making use of artificial intelligence (AI), it is imperative that taxpayers act honestly and ethically to avoid being charged with a criminal offence.
Ensure that you have proper records and documentation of all income and expenses eligible for a tax deduction, as Sars might require you to upload supporting documents after submitting your return. In terms of the Tax Administration Act, all documents should be kept for at least five years.
A noteworthy provision applicable to the 2024 season of assessment is the Section 6C solar energy tax credit – a once-off tax credit available to individuals who have installed solar panels at their place of residence.
The purpose of this credit was to encourage investment in renewable energy, so continuing trade is not a requirement to be eligible for this credit.
The credit can only be claimed if the deduction provided for under sections 12B or 12BA (for persons using their residence for trading purposes) has not been claimed. The credit is calculated as 25% of the actual cost of the installation, and is limited to a maximum amount of R15 000.
Other components such as supporting structures, batteries, and inverters do not qualify for this credit.
- Dr Annelize Oosthuizen is a senior lecturer and head of Taxation in the School of Accountancy at the University of the Free State (UFS).
