Tax Season 2023 now open – what’s new and what’s not

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	2024 FIRST PROVISIONAL TAX RETURNS AND PAYMENTS DUE 31 AUGUST 2023 August sees the first provisional tax deadline for 2024 of all registered provisional taxpayers with February year ends. While SDK is in the process of working with you to determine your first provisional tax payment and to ensure compliance with SARS, here are a few factors to consider: Provisional tax is not a type of tax, it should rather be seen as a pre-payment of your income tax. The first provisional tax period is generally an estimate of what you anticipate your taxable income to be in the next tax year of assessment. It is highly recommended that the taxpayer should not submit an estimate which is less than the basic amount. Payments to SARS should be made by 29 August 2023 to limit the risk of payments be deemed late. SARS PAYMENT METHODS Please note that SARS no longer accepts payment per cheques. Alternative payment options are the following: Electronic Transfer (EFT) Making payment at your bank using the tax statement as proof Credit push channel through E-Filing How is the first provisional tax calculated? Step 1: The total estimated taxable income for the year x the relevant tax rate = Tax payable for the whole year. Step 2: Then the tax payable for the whole year is divided in half to obtain the portion of tax due for the first six months of the year. Step 3: Any tax credits (such as employees tax, foreign tax credits and medical tax credits) are deducted from the tax amount calculated in step 2 to obtain the amount that needs to be paid to SARS by 31 August. SARS verifications and first provisional tax declarations SARS has started to request supporting documentation for the first provisional tax declarations that have been made, mostly where the declaration is less than then basic amount. The type of supporting documentation that you should have ready should it be requested from SARS is: Current year management accounts used to calculate the estimate income Tax Computation Reasons for amounts used in declaration. The above list is not extensive, and SARS may request any information they deem necessary to verify the declaration made.

August 2023 NEWSLETTER

Tax Season 2023 Now Open – What’s New and What’s Not

The 2023 Tax Season in South Africa opened officially on 7 July 2023 for individuals who are both non-provisional taxpayers and provisional taxpayers – as well as for trusts.

While much has stayed the same from last year, like the auto assessments introduced in 2022, there are also a number of changes this year – ranging from new deadlines to revised requirements briefly overviewed in the article – which taxpayers should take heed of before proceeding and which provide good reason for speaking to your accountant before submitting your tax for this year’s filling season.

The True Cost of an Employee

As they develop, businesses often need to take on new employees. The decision as to whether to do so will come down to business needs and the potential for growth compared with the cost of that new employee. Unfortunately, newer business owners can often hugely underestimate the true cost of that employee.

Monthly wages are just the first consideration when costing a new employee in this critical equation. Here are the things you need to factor in to work out the true cost of an employee.

Tips for Getting out of Business Debt

As a business grows, owners may find they need to take out loans to build infrastructure, take on essential new employees, meet legal requirements or upgrade equipment to ensure future growth.

These moments can each feel necessary at the time, but if business owners are not careful, they may find themselves with more debt than they can reasonably manage. An inability to repay debts is a huge threat to business stability, and in the end, viability. Here are nine tips on how to get out from under crippling business debt.

SARS Warning: Beware Scam Emails!

South Africans are expecting to hear from SARS, with Tax Season 2023 open since 7 July. Knowing this, cybercriminals will also be intensifying their email “phishing” attacks by sending emails that seem to come from SARS – often apparently notifying you of a tax refund or scaring you with outstanding debt or penalties – created to trick people into clicking on a link, sharing one-time pins (OTPs) or providing personal details.

Read on for more detail, advice on keeping safe, and useful links…

Your Tax Deadlines for August 2023

7 August - Monthly Pay-As-You-Earn (PAYE) submissions and payments
30 August - Excise Duty payments
31 August - Value-Added Tax (VAT) electronic submissions and payments, CIT Provisional payments where applicable, first provisional tax payment for the 2024 tax year (individuals).

Disclaimer

The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for professional, detailed and appropriate advice.

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