15/07/2020
Individual taxpayers.
Phase 1- Tax file updates
Period 1 June to 31 August 2020
During this period taxpayers are requested to engage with SARS to ensure that their tax files are up to date, in terms of general hygiene checks, banking details, address changes.
Most of these tasks can be completed online.
All outstanding third party information will also be followed up during this period to ensure the highest level of data integrity. Third-party data providers, including employers, who remain wilfully non-compliant, will be charged criminally during this period.
During this phase a significant number of taxpayers will receive auto-assessments and given an opportunity to confirm their acceptance of the assessment outcome according to SARS.
The 2020 return covers income activities – i.e. income received, and deductible costs incurred – that occurred during the period 1 March 2019 to 29 February 2020.
The changes are intended to ease the administrative burden of submitting a tax return, thereby encouraging compliance.
From the month of August, SARS will be generating auto assessments to taxpayers, to try simplifying their return submissions. Based on the updated SARS guide, SARS will only auto-assess a taxpayer, where they have third party information available.
Taxpayers employed for the full 12-month tax period(1 March 2019 to 29 February 2020) who received an IRP5 certificate from their employer, made contributions towards retirement policies, and/or made contributions towards medical aid, will be selected for auto-assessment.
Should the taxpayer be selected for an auto assessment, it is important to note that SARS will not be able to include any other additional information on your tax return, which is not retrievable from a third-party; for example, if you receive a travel allowance, SARS will not be able to pre-populate the travel logbook details.
It is therefore crucial to not just accept the auto assessment without thoroughly checking that all relevant information is included and accurate.
Similarly, SARS will not auto-assess taxpayers who receive additional income, such as rental income, investment income, freelance income, foreign income; or taxpayers who have received tax directives during the 2020 tax year.
This group of taxpayers will have to follow the existing process of filing their tax returns. Where a taxpayer’s return is selected for auto-assessment, the taxpayer will receive a SMS notifying them of the draft assessment prepared.
The assessment will not be final, and it will require the taxpayer to confirm their acceptance thereof.
Individual taxpayers who are required to file but have not been auto-assessed may file early via online facilities if their employers and other third-party data providers are fully compliant (which includes no PAYE debt without a proper and secure deferment arrangement).
Individuals who are not required to file will be informed.
Phase 2- Employee filing
Period 1 September to 31 January 2021
During this phase, individuals who are required to file will be reminded by SARS.
Individuals who are non-provisional taxpayers or have not accepted the outcome of an auto-assessment are required to file as from 1 September through to 16 November 2020 and encouraged to file using our on-line channels to minimise visits to our offices.
Individuals who are non-provisional taxpayers, who make use of our Branch facility has until the 22 October 2020 to file.
Provisional Taxpayers who have not accepted the outcome of an auto-assessment are required to file when they are ready but not later than 31 January 2021.
**NB: IT IS ALWAYS ADVISABLE THAT BEFORE AN AUTO ASSESSMENT ISSUED BY SARS IS ACCEPTED, THAT A PROFESSIONAL TAX CONSULTANT OR TAX PRACTITIONERBE CONSULTED.
