Tax News
Stay informed with the latest developments in tax regulations affecting both individuals and businesses. Including key filing deadlines for individuals, businesses, and trusts this season.
Filing Season for Individuals
Income tax return filing dates for the 2024 Filing Season are:
Auto-assessment Notices
1 July 2024 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
Filing Season for Companies
Are due within 1 year after the company’s financial year end for example, your company has a 29 February 2024 year end, the income tax return will be due by 28 February 2025.
There are two provisional tax returns. The first is due 6 months after the company's financial year-end. The second is due 12 months after the company's year-end. For example, a company with a year-end of 28 February 2025 would have its first provisional tax return and payment due by 31 August 2024. The second provisional tax return would be due by 28 February 2025.
EMP201 returns are due monthly by the 7th of the following month. For example, your November payroll return and payment is due by December 7th. If the 7th falls on a weekend or public holiday, the due date is the business day before. Late payments will be subject to a 10% penalty.
VAT201 returns are due monthly or bi-monthly depending on your VAT category. The return and payment will be due on the last day of the following month, for example, your October & November period's return will be due by 31 December. Kindly note that if the last day of the month falls over a weekend or on a public holiday, then the due date will be on the business day before the weekend or public holiday. Late payments will be subject to a 10% penalty.
When declaring a dividend, you are required to submit a DTR01 and DTR02 return. The return and payment will be due on the last day of the following month. For example, if you declare a dividend in November, your return and payment (if applicable) will be due by 31 December. Kindly note that if the last day of the month falls over a weekend or on a public holiday, then the due date will be on the business day before the weekend or public holiday. Late payments will be subject to a 10% penalty.
Who is a Provisional Taxpayer?
Any person who receives income (or to whom income accrues) other than remuneration, is a provisional taxpayer. Most salary earners are therefore not-provisional taxpayers, if they have no other sources of income. It is important to note that receiving exempt income, as follows, does not make you a provisional taxpayer:
- If you receive interest of less than R23 800 if you are under 65; or
- If you receive interest of less than R34 500 if you are 65 and older or;
- You receive exempt amount from a tax free savings account.
Do You Qualify For The Following?
Home Office Deductions
If the room is regularly and exclusively used for the purposes of your trade, e.g. employment and is specifically equipped for that purpose. The home office must therefore be set up solely for the purposes of your trade; and
If your remuneration consists only of a salary and similar remuneration i.e. you are required to work from home, then your employer must provide a letter stating the number of days per week and your duties must be mainly performed in this part of the home. It therefore means you must perform more than 50% of your duties in your home office; or
If more than 50% of your remuneration consists of commission or variable payments based on your work performance, more than 50% of those duties must be performed otherwise than in an office provided by your employer.
Solar Rebate
To encourage individuals to invest in clean electricity-generation capacity, the solar energy tax credit was available for one year. It applied to new and unused solar PV panels that were acquired by the individual and brought into use for the first time from 1 March 2023 to 29 February 2024.
The amount of the solar energy tax credit allowed as a deduction to an individual under section 6C was 25% of the cost of the solar PV panels described above, up to a maximum of R15 000.
It should be noted that a deceased estate does not qualify for the solar energy tax credit.
What is a Small Business Corporation (SBC)
A Small Business Corporation (SBC) is a private company or close corporation that complies with various requirements per the Tax Act.
If it meets the definition of a SBC, it can take advantage of progressive tax tables as opposed to the current fixed standard corporate tax rate of 27% and accelerated depreciation for certain assets. A small business that qualifies as a small business corporation (SBC) pays no income tax on the first R95 750 taxable income (for years of assessment ending on or after 1 April 2024).
The rate of tax you pay will depend on taxable income as the rates for a SBC are progressive, the higher the taxable income, the higher the tax rate.
Individuals
| rates of tax | taxable income (R) |
|---|---|
| 18% of taxable income | 1 - 237 100 |
| 42 678 + 26% pf taxable income above 237 100 | 237 101 - 370 500 |
| 77 362 + 31% of taxable income above 370 500 | 370 501 - 512 800 |
| 121 475 + 36% of taxable income above 512 800 | 512 801 - 673 000 |
| 179 147 + 39% of taxable income above 673 000 | 673 001 - 857 900 |
| 251 258 + 41% of taxable income above 857 900 | 857 901 - 1 817 000 |
| 644 489 + 45% of taxable income above 1 817 000 | 1 817 001 and above |
Companies
| Rate of tax | Years of Assessment Ending |
|---|---|
| 27% | 1 April 2024 and thereafter |
| 27% | 31 March 2023 to 31 March 2024 |
| 28% | 1 April 2022 - 30 March 2023 |
| 28% | 1 April 2021 - 31 March 2022 |
| 28% | 1 April 2020 - 31 March 2021 |
Small Business Corporation (SBC)
| rate of tax | taxable income (R) |
|---|---|
| 0% of taxable income | 1 - 95 750 |
| 7% of taxable income above 95 750 | 95 751 - 365 000 |
| 18 848 + 21% of taxable income above 365 000 | 365 001 - 550 000 |
| 57 698 + 27% of the amount above 550 000 | 550 001 and above |