1. Deadline Reminders
The imminent closure of the provisional taxpayers’ tax season on January 24, 2024, marks a crucial date for individuals to settle their dues and finalize affairs related to the 2022/23 tax year.
2. Taxpayer Categories and Obligations
2.1 Non-Provisional Taxpayers
Non-provisional taxpayers were required to submit their annual income tax between July 7, 2023, and October 23, 2023, pertaining to the income earned from March 1, 2022, to February 28, 2023.
2.2 Provisional Taxpayers: Understanding the Criteria
Provisional taxpayers, distinct from employment-only taxpayers, include individuals receiving income other than remuneration. Their responsibility is to reconcile and declare both employment and non-employment income sources within the specified period.
3. Defining Provisional Taxpayers
Provisional taxpayers encompass various entities, including natural persons earning income beyond remuneration, companies, and individuals designated as such by the tax commissioner.
4. Time Extension for Declaration
Unlike employment-only taxpayers, provisional taxpayers are granted an extended timeline from July 7, 2023, to January 24, 2024, to submit their tax returns, encompassing income earned from March 1, 2022, to February 28, 2023.
5. Clarification on Deadline Differences
It’s crucial to differentiate between the January 24 deadline for the 2022/23 tax year and the separate provisional tax return deadlines for the ongoing 2023/24 tax year.
6. Understanding Provisional Tax
Provisional tax serves as a method to prepay income tax liability in advance, allowing taxpayers to spread their tax liability over the assessment year based on estimated taxable income.
7. Payment Schedule for Provisional Tax
For the 2023/24 tax year, provisional taxpayers have already made their first payment by August 31, 2023, and are due to make the second payment by February 29, 2024, based on their estimated tax for the full year.
8. Clearing Misconceptions
It’s important to note that the January 24, 2024, deadline concerns declarations for the previous (2022/23) tax year, while the payment deadlines in August and February pertain to the current (2023/24) tax year.
9. Conclusion: Key Dates Recap
The January 24, 2024, deadline signifies the conclusion of declarations for the 2022/23 tax year, while the forthcoming tax year’s deadlines will be in January 2025.
Understanding these distinctions is crucial to ensure compliance and avoid confusion regarding the timelines and obligations set forth by the South African Revenue Service (SARS).
