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IMPORTANT TAX DEADLINES TO REMEMBER
- 29 February 2024:Companies, Close Corporations and Trusts with February year ends 2024 tax returns
- 29 February 2024:2024 second provisional tax estimates and payments for provisional individual taxpayers, Companies, Close Corporations and Trusts with February year ends.
2024 SECOND PROVISIONAL TAX RETURNS AND PAYMENTS DUE 29 FEBRUARY 2024
February sees the second 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 second 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 second 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 February 2024 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 (preferred method).
How is the second 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 less any payment made in first provisional tax period and other tax credits (such as employees tax, foreign tax credits and medical tax credits) are deducted from the tax amount calculated in step 1 to obtain the amount that needs to be paid to SARS by 29 February.
SARS verifications and provisional tax declarations
SARS has started to request supporting documentation for the second 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.
IMPORTANT YEAR END CONSIDERATIONS TO REMEMBER – 28 FEBRUARY 2024
We would like to remind you of the following aspects relating to February year-end entities and all individuals.
Companies and Close Corporations:
Dividend Declarations:
Consider whether a year-end dividend should be declared as these dividends should be declared by 29 February 2024.
Contact us to assist you with any calculations and preparation of dividend resolutions and dividend withholding tax returns.
Individuals:
Travel allowance:
Employees in receipt of a travel allowance must maintain a logbook of business and private travel. No deduction for income tax purposes will be considered without a valid logbook. A logbook must include date of travel, destination, reason for travel and the business kilometres travelled.
Remember to record your closing kilometres (ODO reading) as at 29 February 2024.
Bank account balances:
Remember to document and send us the closing balance of your bank account(s) as at 29 February 2024.
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