As the 2024 tax season approaches, it’s vital to be prepared and stay updated on important dates and information from the South African Revenue Service (SARS). Gathering documents, understanding changes, and ensuring all information is correct can lead to a smoother filing process. Here’s what you should know:

Important Filing Dates:

What’s New This Year?

The 2024 tax season brings several changes:

  1. Pro-rata Retirement Fund Deductions: The allowable retirement contribution deductions have been adjusted for shorter assessment years. The new amount will be proportional to the ratio of the number of days in the assessment year to 365 days. Therefore, if a person’s assessment year is less than 12 months, the allowable retirement contribution deduction (currently R350,000) will be applied proportionally.
  1. Tax-Free Investments Exemption: The contribution limits for assessment periods of less than 12 months have been updated. According to Section 12T(4)(a) of the Income Tax Act, if a person’s year of assessment is less than 12 months, the contribution limit (currently R36,000) will be applied proportionally. This adjusted contribution limit will apply for any year or years of assessment during the 12 months starting in March and ending at the end of February of the following calendar year.
  1. Urban Development Zone Deductions: Section 13 of the Income Tax Act has been amended to extend the allowable deduction until 31 March 2025. The relevant paragraph in subsection (5) has been updated to read: “(c) which is brought into use by the taxpayer after 31 March 2025.”
  1. Solar Energy Tax Credit: There is a new tax incentive for rooftop solar panels. This tax credit applies to new and unused solar panels installed for the first time during the 2024 assessment year (1 March 2023 – 29 February 2024) with a minimum generation capacity of 275W each.
  1. Renewable Energy Tax Incentives: The redesigned renewable energy tax incentive now applies to currently eligible renewable energy sources without electricity-generation limits for the duration of this temporary incentive. Businesses can deduct 125% of the cost incurred for eligible assets used in electricity generation, upfront.
  1. ITR12 Form Changes: The ITR12 form has been revised to tackle the challenges faced by taxpayers. Previously, taxpayers had to choose the relevant wizard questions for the income, exemption, and foreign tax credit sections before entering the exemption amount for qualifying criteria. The updated form simplifies this process, making it easier for taxpayers to complete their returns.

Ensure Your Details Are Updated

Make sure your SARS details, including bank information and eFiling credentials, are accurate and current to avoid any delays or issues.

Beware of Scams

Be extra cautious of phishing scams, especially during tax season. Always authenticate the source of any communication purporting to be from SARS.

Need Help?

We are here to assist you with all your tax filing needs. Our experts will ensure that you meet all deadlines and take advantage of any applicable deductions and credits. Contact us today to schedule a consultation and make this tax season stress-free.

For more detailed information, visit the SARS Tax Season page.

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