Engelsman Magabane Incorporated is here to keep you informed about the upcoming personal income tax filing season. The South African Revenue Service (SARS) is committed to making tax compliance easier for individuals, and they’ve implemented several key changes for the 2024 filing season. Here’s a breakdown of what you need to know:
Filing Season Dates:
- Auto Assessment notices: 1 to 14 July 2024
- Individual taxpayers (non-provisional): 15 July 2024 to 21 October 2024
- Provisional taxpayers: 15 July 2024 to 20 January 2025
- Trusts: 16 September 2024 to 20 January 2025
Key Updates for 2024:
- Pro-Rata Deduction for Retirement Fund Contributions: If your tax year is less than 12 months, the maximum allowable deduction for contributions to retirement funds (currently R350,000) will be adjusted proportionally.
- Exemption for Tax-Free Investment Amounts: Similar to retirement contributions, the annual contribution limit for tax-free investments (currently R36,000) will be adjusted pro-rata for tax years shorter than 12 months. The limit applies to the combined contributions made in the 12-month period from March to February of the following year.
- Extension of Deduction for Urban Development Zone Buildings: The deadline to claim a deduction for the erection or improvement of buildings in urban development zones has been extended to March 31, 2025.
- Solar Energy Tax Credit Update: The solar energy tax credit, which provided a deduction for a portion of the cost of new solar panels installed between March 1, 2023, and February 29, 2024, is no longer available for new installations.
- New Renewable Energy Tax Incentive: A redesigned renewable energy tax incentive is now available. Businesses can deduct 125% of the cost upfront for qualifying renewable energy generation assets. This incentive applies without electricity generation limits until March 1, 2026. However, if you dispose of the asset before that date, you will be required to recapture the deducted amount.
- ITR12 Form Changes – Foreign Employment Income Exemption: The ITR12 form has been redesigned to simplify claiming the foreign employment income exemption (sections 10(1)(o)(i) and 10(1)(o)(ii)).
- ITR12 Form Changes – Beneficial Owner: SARS emphasizes that Tax Practitioners must ensure they fill in their own contact information in the designated section, and not the individual taxpayer’s details, when submitting ITR12 returns.
Engelsman Magabane Incorporated: Your Partners in Tax Compliance
At Engelsman Magabane Incorporated, we understand that navigating tax filing can be complex. We are here to assist you with:
- Understanding the latest tax regulations and how they apply to you.
- Completing your tax return accurately and efficiently.
- Maximizing your deductions and credits.
- Liaising with SARS on your behalf.
Stay Informed and File on Time!
We encourage you to review these updates and ensure you file your tax return by the relevant deadline. For any questions or to schedule a consultation, please don’t hesitate to contact Engelsman Magabane Incorporated.
Disclaimer: This blog post is for informational purposes only and does not constitute professional tax advice. Please consult with a qualified tax professional for guidance on your specific tax situation.