The 2023 Tax Filing Season is Upon Us.

by | Jun 29, 2023 | Tips from Northbound | 0 comments

The 2023 tax filing season is upon us.

The South African Revenue Service (hereafter referred to as “SARS”) has quietly announced the start of tax season 2023, which will kick off on Friday, 7 July 2023. The 2023 tax season for individuals relate to your personal tax information for the period 1 March 2022 to 28 February 2023.

For Individual taxpayers

For Non-provisional taxpayers, it opens on Friday 7 July 2023 at 20:00pm and closes on Monday, 23 October 2023.

For Provisional taxpayers, it opens on Friday 7 July 2023 at 20:00pm and closes on Wednesday, 24 January 2024.

Any 2023 income tax return submitted to SARS after the afore-mentioned dates, will be considered late by SARS, and will be subject to late submission administrative penalties.

If you are not sure if you are a provisional or a non-provisional taxpayer, please contact us and we will confirm your status.

Auto assessments

Based on third-party data received from employers, financial institutions, medical schemes, retirement annuity fund administrators and other third-party data providers, SARS may automatically assess you (also referred to as an original estimate assessment). If you are selected for an auto-assessment for the 2023 tax season, SARS will let you know.

This year from 1 July 2023 SARS will again issue auto-assessments to taxpayers whose tax affairs are less complicated.  If you are in agreement with your auto-assessment, then there is no need to “accept” the assessment. If there are any objections to the auto assessment, we will need to object before the due date of 23 October 2023.

If an auto-assessment has been issued after 23 October 2023, the 40 business days will start on the date of the notice of the assessment.

Payment Due Dates

This year, the payment due date for non-provisional eFilers will be adjusted as follows:

  • For taxpayers who are not in the auto-assessment population, payment due date will be 30 days after a notice of assessment has been issued,
  • For taxpayers who are auto-assessed, payment due date will be 30 days post Filing Season 2023 closing date.

Compulsory Statement of Assets and Liabilities

Provisional taxpayers with business interests i.e. Directors of companies / members of CC’s are required to declare their 2023 statement assets and liabilities (based on cost) in their tax returns each year.

Taxpayers who fall within this category, and with assets above R50 million, are required to declare specified assets at market values on their 2023 tax returns.

We will be in touch to request your statement of assets and liabilities as at 28 February 2023.

Spouses Married in Community of Property Assessment

Taxpayers who are married in community of property are taxed on half of their interest, dividends, rental income, and capital gains. This Filing Season SARS has retrieved “Married in community of property” status from taxpayer’s previous declaration and collaborated with the Department of Home affairs to confirm marital status. Where the spouses are successfully matched and have interest investments, SARS will replicate the interest investment certificate on both spouses’ return where they will be taxed 50% upon assessment.

This will no longer be done manually by the Tax Practitioner. Please ensure your tax status is correct if you are married in community of property.

Documents required for the 2023 Tax Season

Please make sure you send us the following for your income tax returns:

  • 2023 IRP5 tax certificate / s
  • IT3 (a) tax certificates – same as an IRP5, except that it shows employee earnings from which tax has NOT been deducted
  • IT3 (b) tax certificates – Income from Investments, Property Rights, Royalties and/or Withholding Tax on Interest
  • IT3 (c) tax certificates – Certificate of income in respect of the disposal of unit trust or other financial instruments.
  • IT3 (s) tax certificates – Tax free Investments tax certificates
  • 2023 medical aid tax certificate
  • 2023 medical aid summary of expenses relating to out of pocket additional medical aid expenses and all slips / receipts / invoices relating thereto
  • IT3 (f) – 2023 retirement annuity fund tax certificate
  • Capital gains details on any property sold such as conveyancing attorney statement and proof of cost of property when purchased and costs of any additions to property along with the relevant invoices.
  • All slips / invoices / receipts / proof of payments relating to any business expenditure claimed in your income tax return.
  • and any other third-party data relevant to determining your tax obligations.
  • Statement of assets and liabilities balances as at 28 February 2023 if you are a provisional taxpayer with business interests
  • 2023 logbook

Please ensure that you provide us with all relevant tax information and documentation for us to complete your income tax return as accurately and as precise as possible. SARS now has access to the Deeds Registry Office, banking institutions databases, eNaTIS system etc and much more. So, they are able to verify and pick up on any information not provided to SARS in your income tax return which relate to the 2023 tax year. It is therefore best to declare everything to SARS to ensure a smooth 2023 filing season.

Knowledge is power when it comes to taxation. We will make sure that we exercise your rights and take the necessary steps to ensure a fair and just process of your tax matters with SARS.

By Laverne Geswint | GTP – (SA) | SAIT
General Tax Practitioner South Africa