SAIT Newsletters

Deadline: Provisional tax and turnover tax payments

The end of the 2025 year of assessment for individuals and companies with a February year-end is on Friday, 28 February 2025. As such, the second provisional tax returns, covering the period 1 March 2024 to 28 February 2025, are due. Affected individuals and companies are encouraged to submit their IRP6 returns on or before the due date to avoid penalties and interest.

The VAT standoff: Unprecedented turn of events put the Budget on hold

On 19 February 2025, South Africa’s National Budget Speech was postponed- a first since the dawn of democracy in 1994. The National Budget Speech will now be presented on 12 March 2025.

Budget 2025: What South Africans Can Expect

Minister of Finance, Mr Enoch Godongwana, will deliver the 2025 National Budget Speech on Wednesday, 19 February 2025, at 14:00.

There is growing speculation regarding potential tax changes that could affect individuals and businesses, such as the introduction of Phase 2 of the Carbon Tax and possible changes to the tax treatment of Collective Investment Schemes.

South Africa prepares for the 2025 State of the Nation Address

As South Africa gears up for the highly anticipated 2025 State of the Nation Address (SONA), all eyes will be on President Cyril Ramaphosa as he delivers his speech on Thursday, 6 February at 19:00 from the Cape Town City Hall. This annual address sets the tone for the government’s priorities, policies, and economic outlook for the year ahead.

Getting your VAT registration application right

On Monday, 27 January 2025, the SARS Western Cape region hosted a ‘VAT Registration Requirements’ workshop to assist tax practitioners in understanding the requirements for VAT registrations and to provide insight into some of the main reasons for registration application rejections.

Time to consider getting your fixed percentage tax directive

A Fixed Percentage Tax Directive, issued by the South African Revenue Service (SARS), instructs an employer to deduct employees’ tax (PAYE) from an employee’s remuneration at a predetermined fixed percentage, regardless of the amount earned. This is particularly beneficial for individuals whose income fluctuates monthly, such as commission earners, freelancers, or personal service providers.

Provisional individuals and trust deadline: 20 January 2025

The deadline for the 2024 filing season for individual and trust provisional taxpayers is Monday, 20 January 2025. Provisional taxpayers are encouraged to submit accurate and complete returns on time to avoid penalties for late submission.

Last issue of Tax Practice: Weekly Highlights for 2024

For the festive season ahead, the SAIT TaxHelpline will be closed from Friday, 13 December 2024, at 12:00 and will reopen on Monday, 13 January 2024, at 08:00. During this time, the system will not be accessible to members and consultants will be unavailable to assist with technical queries.

National Treasury and SARS convene Annexure C workshops to clarify and prioritise technical proposals for the 2025 Budget Review

As part of ongoing efforts to engage with stakeholders and ensure comprehensive review of the proposals submitted for consideration in the 2025 Budget Review, National Treasury and SARS convened virtual workshops on 3 and 4 December 2024. The purpose of these workshops was to clarify issues raised in the technical proposals submitted, assist in the prioritisation process, and gather further insights from participants.

Shaping the future of tax policy: SAIT submits comprehensive tax proposals for the 2025 Budget

SAIT’s Tax Technical has responded to National Treasury’s invitation to submit technical Annexure C tax proposals for the 2025 Budget. The submissions, prepared by various SAIT technical workgroups, address key areas including business tax incentives, corporate tax, customs and excise, international tax, personal employment taxes, tax administration and dispute management, VAT, and wealth and family business tax.

Tax review on collective investment schemes: A critical consultation opportunity for members

National Treasury has launched a review of the income tax treatment of collective investment schemes (CIS), marking a pivotal moment for the sector. This review, first announced in the 2020 Budget, stems from concerns raised in the 2018 Taxation Laws Amendment Bill regarding the classification of amounts received by CIS portfolios as either revenue or capital. The aim is to clarify tax implications, potentially reshaping the sector’s financial landscape.

SARS hosts webinar to boost trusts tax compliance

SARS will be hosting a webinar on trusts and tax compliance to help trust taxpayers fulfil their tax obligations and remain tax compliant. This is in line with the organisation’s strategic objectives of providing clarity and certainty and making it easy for taxpayers to comply with their tax obligations

Be part of the tax legislative framework review

As we look ahead to the 2025 Budget Review, taxpayers and tax practitioners have a unique opportunity to influence the tax legislative design. Per standard practice, National Treasury is inviting submissions for technical tax proposals focused on current issues such as unintended anomalies, revenue leakages, and other necessary adjustments to the existing tax legislative framework.

Finance Minister delivers the Medium Term Budget Policy Statement

Focusing on the in-year revenue outlook, the Minister of Finance, Mr Enoch Godongwana, highlighted the following points during his address to Parliament on 30 October 2024…

2025/01 interim employer recons due on 31 October 2024

Thursday, 31 October 2024, is the due date for the bi-annual third-party data and interim employer EMP501 reconciliation submissions in respect of the 2025 year of assessment. The 2025/01
period covering the 1 March – 31 August 2024 reporting period. This is a crucial step in the wider income tax reconciliation process, simplifying compliance and enabling SARS to issue income tax returns with pre-populated third-party and payroll information.

ITR12 returns for non-provisional taxpayers due on Monday, 21 October 2024

Individual non-provisional taxpayers have until Monday, 21 October 2024, to submit their 2024 annual tax returns to SARS. It is also imperative to note that taxpayers who received an
auto-assessment in July 2024 and wish to submit a correction, must submit such correction on or before 21 October 2024.

ConCourt ruling clarifies understanding in the Thistle Trust case concerning the conduit principle and redefines tax and estate planning for tiered trusts

In clarifying the application of the conduit principle to capital gains within multi-tiered trust structures, the Constitutional Court emphasised specific provisions of the Act and the Eighth Schedule thereto. The majority opinion determined that the conduit principle does not extend beyond the first beneficiary trust, thus holding the Thistle Trust liable for capital gains tax. Conversely, the dissenting opinion advocated for a rational and non-arbitrary application of tax laws, urging for the full implementation of the conduit principle for ultimate beneficiaries.

Mismatch in trust registration numbers remains a hurdle

On 30 September 2024, the submission deadline for the IT3(t) returns, SARS published the trusts’ frequently asked questions (FAQs) on the trusts webpage. The FAQs covers seven main questions…

SAIT notes the sad passing of former SARS Commissioner and Minister of Finance, Pravin Gordhan

From Friday, 27 September 2024, at 14:00 until Monday, 30 September 2024, at 08:00, the SAIT Tax Helpline will be undergoing scheduled server maintenance. The system upgrades are performed periodically to optimise the TaxHelpline’s performance.

SAIT notes the sad passing of former SARS Commissioner and Minister of Finance, Pravin Gordhan

It is with profound sadness that SAIT received the news of the passing of former SARS Commissioner and Minister of Finance, Pravin Gordhan. Gordhan served as the Commissioner of SARS between 1999 – 2009, a period wherein he ushered in and evangelised the notion that SARS exists to serve a higher purpose of enabling government to build a capable democratic state that fosters sustainable economic growth and social development in the interest and wellbeing of all South Africans. It is also during this time that the conceptualisation and foundations were laid for a modern tax and customs administration.

SAIT and its work groups make submissions concerning the Draft Tax Bill Amendments

Following the release of the recent draft tax bills on 1 August 2024, SAIT and the various technical workgroups convened to thoroughly review, discuss and provide commentary on the draft amendments.

D-Day for the 2025/01 provisional tax payments

Individuals, trusts and companies with a February year-end are reminded that the due date for the submission of the 2025 first provisional tax returns and payments is 30 August 2024.

Tax Ombud investigation of eFiling profile hijacking given the green light

The Office of the Tax Ombud (OTO) has sought and obtained approval from the Minister of Finance to conduct a review of possible systemic and emerging issues related to the alleged SARS’ service failures in assisting taxpayers who have been affected by eFiling profile hijacking timeously in terms of section 16(1)(b) of the Tax Administration Act.

Two weeks to go before the 2025 first provisional tax payments due date

Individuals, trusts and companies with a February year-end are reminded that the due date for the submission of the 2025 first provisional tax returns and payments is 30 August 2024. It is important to note that 31 August 2024 fall over the weekend, therefore all payments must be received by SARS at the last day preceding the weekend. The first interim payments for the 2024 year of assessment in respect of micro businesses registered for turnover tax are also due on the same date.

2024 Draft Tax Bills and Regulations released for public comment

As anticipated, National Treasury and SARS have jointly released the 2024 Draft Tax Bills and Draft Regulations for public comment, which provides the necessary legislative amendments required to implement the more complex tax announcements made in Chapter 4 and Annexure C of the 2024 Budget Review that require greater consultation with the public

The importance of tax practitioners’ compliance now legislated

SARS has issued IN 132 that provides guidance on when, due to tax non compliance, a person may not register as a tax practitioner, and when SARS must deregister a registered tax practitioner

Ramaphosa signs pension funds amendment bill into law

President Ramaphosa has assented into law the Pension Funds Amendment Bill, which amends pension-related legislation to enable the implementation of the two-pot retirement system on 1
September 2024.

System glitches as Filing Season 2024 officially kicks off

Filing Season 2024 officially kicked off on Monday, 15 July 2024, for all individual taxpayers not forming part of the autoassessment population. The start of the filing season was not without any teething problems as thousands of taxpayers and tax practitioners rushed to eFiling to submit their tax returns.

Fraudsters still finding new ways to beat the tax system

Two weeks ago, SARS took a decision to block the submission of personal income tax returns older than five years on eFiling and requires that taxpayers with outstanding returns must visit a SARS branch to regularise their income tax affairs.

Fraudsters still finding new ways to beat the tax system

With Filing Season 2024 right around the corner and many other taxpayers having received their auto-assessments, fraudsters continue to lurk in the background looking for new ways to beat the tax system.

Apex court holds in favour of the taxpayer in its contentious foreign business establishment case with SARS

The long-awaited outcome in the matter between Coronation Investment Management SA (PTY) Limited (Coronation) and SARS, which stems from a long-standing matter of judicial debate pertaining to the foreign business establishment (FBE) definition as contained in section 9D of the Income Tax Act was handed down on 21 June 2024

National Treasury sheds light on the implementation of Pillar 2

In efforts to clarify stakeholders’ understanding pertaining to them implementation of the global minimum tax, National Treasury convened a workshop to shed light on the implementation of Pillar 2. Following the release of the draft Global Minimum Tax Bill (and associated documentation) for public commentary in February 2024, stakeholders submitted commentary thereon – which National Treasury has considered

Tax practitioners left stranded without eFiling access

On Friday, 31 May 2024, SARS started denying access to eFiling profiles where the contact details associated with the profile are linked to more than the maximum number of profiles allowed. This came at a sensitive time as 31 May 2024 fell on the submission deadline for some electronic VAT submissions, employer reconciliation and third-party data.

Ramaphosa assents into law the ‘two-pot’ system bill

On 1 June 2024, President Cyril Ramaphosa assented into law the Revenue Laws Amendment Bill, 2023 that permits members of retirement funds access to their retirement savings. The primary objective of the ‘two-pot’ retirement system is to provide flexibility for fund members to access their retirement savings during financial emergencies without necessitating resignation from employment

Looming deadline for employer reconciliations and third party data reporting

Employers and other third-party data providers are reminded of the deadline of 31 May 2024 for the submission of 2024/02 annual employer EMP501 reconciliations and third-party data. This data is used by SARS to pre-populate taxpayers’ income tax returns.

SARS changes the rule book on eFiling Security Details

In recent months, SARS saw an uptick in the number of fraud cases reported with a specific increase in the number of eFiling profile hijacking cases. As a natural response thereto, there have been multiple implementation by SARS to curb the risk of unauthorised access to eFiling profiles. Top of the list is ensuring the integrity of eFiling security details.

What happened with the eFiling two-factor authentication and where to from here?

Three weeks ago, SARS implemented the two-factor authentication option on eFiling in an effort to curb the eFiling profile hijacking and fraud loopholes recently identified.

SAIT releases the April 2024 Member Compliance Report

SAIT has a duty to set professional standards by evaluating, implementing, monitoring and enforcing compliance with industry specific legislation, regulations and ethics. SAIT has noted that a growing number of members are not compliant in various areas of mandatory compliance and are therefore in default in upholding and maintaining their membership obligations as per membership terms and conditions in line with SAIT policies as well as SARS Criteria for the Registration of Tax Practitioners and the Recognition of Controlling Bodies.

National Treasury provides further clarity on the ‘two pot’ retirement system

In a hearing on 25 April 2024, National Treasury has provided further detail regarding the impending implementation of the ‘two-pot’ retirement system. The ‘two-pot’ retirement system is going full steam ahead and will be implemented from 1 September 2024.

SARS puts measures in place to prevent digital fraud

There have been several incidences of eFiling profile hijackings reported to SARS and SAIT over the past 2 months. Whilst these cases are reacted to with utmost urgency, the proactive safeguarding of eFiling profiles remains important.

SARS moves forward with the modernisation of trust disputes

As part of the SARS 2024 vision, the revenue collection agency is still moving full steam ahead with modernising the trust disputes. Historically, trust disputes were wholly handled manually, on a paper based system, by completing a manual ADR1 or ADR2 form for an objection and appeal, respectively.

Tax practitioners given green light to represent their clients in South African Tax Courts.

After a lengthy legal battle between the CSARS and Ms Candice-Jean van der Merwe, on 2 April 2024 a full bench of the High Court (Western Cape division) has decided that there is no statutory provision that limits the right of representative appearance in the Tax Court to legal practitioners.

SAIT Tax Technical Work Groups responds to long awaited draft legislation seeking to implement Pillar Two in South Africa

In response to the draft legislation that was issued by National Treasury and SARS pertaining to the implementation of the Global Minimum Tax in South Africa, the SAIT Tax Technical
team together with the International Business Tax and Mining Industry Tax Technical teams have submitted commentary thereto.

SARS collection deadline: 28 March 2024

Today, 28 March 2024, marks the end of SARS’ 2023/2024 financial year. Although the Minister of Finance, Enoch Godongwana, indicated that revenue collection was R56.1 billion lower than the amount estimated in 2023, it is anticipated that SARS will be closer to the targets following the strict collection strategies SARS employed during March 2024

CIPC upgrades its security after breach

Following a major security breach at the Companies and Intellectual Properties Commission in early March 2024, the CIPC system underwent some upgrades from Friday, 15 March to Monday, 18 March 2024.

SARS set to release preliminary revenue results on 2 April 2024

As the 2023/2024 fiscal year comes to a close, SARS will be aiming to retrieve every last cent before 31 March 2024.

SAIT presents to the Standing and Select Committee of Finance

The SAIT Tax Technical team made representation at the public hearings that were convened by the Standing and Select Committee on Finance as pertaining to the National Budget, 2024.

SARS’ debt collection drive starts early in fear of revenue collection deficit

31 March 2024 will see the end of SARS’ 2023/24 financial year. During his budget speech on 21 February 2024, Finance Minister, Mr Enoch Godongwana, attributed the deterioration of tax
revenue collection for the 2023/24 financial year to the weak economic performance. As it stands, the tax revenue collection stands at R1.73 trillion, R56.1 billion lower than the amount
estimated in the 2023 budget.

Highlights from the 2024 Budget Speech

The Budget Speech took place on 21 February 2024 before a sitting of the National Assembly at the Cape Town City Hall.

Highlights from the 2024 State of the Nation Address

President Cyril Ramaphosa delivered the State of the Nation Address (SONA) on Thursday, 8 February 2024 at 19:00. The address took place before a joint sitting of the two houses of
Parliament and was nationally televised.

President Cyril Ramaphosa agrees to extend the SARS Commissioner’s tenure

On 6 February 2024, President Cyril Ramaphosa and SARS Commissioner, Edward Kieswetter, agreed to extend the tenure of the Commissioner beyond the end of his term to enable an
orderly transition in the organisation.

Provisional Tax: Solar Energy Tax Incentive

On 26 January 2024, SARS announced that the IRP6 return had officially been updated and individual provisional taxpayers could claim the solar energy tax incentive rebate on the second
payment due on 29 February 2024. To this effect, a revised external guide on Provisional Tax was also published.

Finance Minister wants your tips as preparations for the 2024 Budget Speech are underway

It is anticipated that the Minister of Finance, Mr Enoch Godongwana, will deliver the 2024 Budget Speech on Wednesday, 21 February 2024.

Provisional individuals and trust deadline: 24 January 2024

The 2023 Filing Season deadline for individual and trust provisional taxpayers is Wednesday, 24 January 2024. Provisional taxpayers are encouraged to submit their true and
complete returns timeously to avoid late submission penalties. The last submission of the income tax return may be subjected to two separate types of penalties.