Budget 2024: How It Affects You and Your Business

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	NEW THIRD-PARTY DATA SUBMISSION REQUIREMENT FOR S18A INSTITUTIONS AND TRUSTS According to the Public Notice 3631 published in Government Gazette No. 48867 on 30 June 2023, all approved Section 18A institutions will be required to submit IT3(d) data with effect from May 2024 for the 2023/2024 year of assessment (01 March 2023 to 28 February 2024). Under the same publication all Trusts will be required to submit IT3(t) third-party information. This means that Tax exempt (EI) Trusts that are approved Section 18A institutions, will be required to submit both the IT3(d) and IT3(t) data to SARS. The IT3(d) and IT3(t) information required to be declared includes: All amounts vested in beneficiaries including income (nett of expenditure), capital gains and capital amounts. S18A receipts issued to donors. Third-Party Data Submissions by Trusts that are Tax Exempt Institutions According to the Public Notice 3631 published in Government Gazette No. 48867 on 30 June 2023, all Trusts will be required to submit third-party information (IT3(t) – returns) on all amounts vested in beneficiaries including income (nett of expenditure), capital gains and capital amounts. Due to their philanthropic and altruistic nature, tax exempt (EI) Trusts are established to benefit the public at large. Therefore, these Trusts do not have the type of beneficiaries envisaged with the submission of IT3(t) returns i.e., beneficiaries of the Trust, as per the Trust instrument, and who will benefit from the income or assets of the Trust. However, certain EI Trusts have other organisations listed as beneficiaries in their Trust instruments to whom distributions will be made on a periodic basis or as per the discretion of the trustees. Typical instances are where a conduit public benefit organisation (PBO) provides funding to one or more public benefit organisations as per the stipulations in the Trust instrument. These Trusts will also be required to submit IT3(t) third party returns for the year of assessment ending on the last day of February 2024. EI Trusts that are approved Section 18A institutions, will be required to submit both the IT3(d) and IT3(t) data to SARS. Should you require further clarification, please do not hesitate to contact us at taxca@sdkca.co.za.

March 2024 NEWSLETTER

Budget 2024: How It Affects You and Your Business

There were few surprises and little in the form of good news in Budget Speech 2024. Although there were no major tax proposals and no major tax rate hikes announced, individual taxpayers will bear the brunt of a R15 billion Budget shortfall, while multinational corporations will pay a global minimum corporate tax, and plans are afoot to tap into the SARB-administered contingency reserve account.

Here is a brief overview of the most pertinent announcements for individuals and businesses that underscore the need for professional tax advice in the year ahead.

Budget 2024: Your Tax Tables and Tax Calculator

Budget 2024 effectively brought an increase in personal income tax by not adjusting the tables for tax rates, rebates and medical tax credits, while also implementing substantial increases in ‘sin’ taxes and introducing a proposed global tax on multinational companies.

This selection of official SARS Tax Tables and other useful resources will help clarify your tax position for the new tax year. Then follow the link to Fin 24’s Budget Calculator (just follow the four-step process) to perform your own calculation.

Things to Look for When Buying a Small Business

On the surface buying into a small business can seem easy. There aren’t a lot of laws to negotiate, and payment can often be done in a single cash-based transaction. However, there are a lot of hidden pitfalls that could make this one of the worst decisions of a person’s life.

This is why investment experts recommend doing “due dilligence” before you transfer all of your money. Here are the most important things to look for when buying a small business.

The Five Skills Your Business Needs to Cultivate in 2024

If you are like the vast majority of companies out there, you are neglecting employee training and it’s going to cost your business. This is the warning coming out of the Harvard Business review which reported that one of the main reasons top talent leaves an organisation is that they feel their career development is not being supported.

In 2024, there is no excuse for this as there are dozens of new skills that employees need to be trained in for the true success of your business. Here are the most important.

Your Tax Deadlines for March 2024

07 March - Monthly Pay-As-You-Earn (PAYE) submissions and payments
25 March – VAT manual submissions and payments
27 March – Excise duty payments
28 March – End of the 2023/24 Financial year, Value-Added Tax (VAT) electronic submissions and payments, & CIT Provisional payments where applicable.

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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