IMPORTANT | TRUSTS. INDIVIDUAL. EMPLOYER. COPORATE.

TRUST | FILING SEASON

• 16 September 2024 to 20 January 2025 for provisional and non-provisional taxpayers. • Registering the Trust for Income Tax with SARS. Within 21 days of registering with Master of the High Court • IT3(t) third-party data return supply SARS with all amounts vested to the beneficiaries of the Trust for the 2024 tax year. Due by 30th September 2024 o File an accurate Income Tax Return every year, even if the Trust is passive or inactive. Due by 20th January 2025. • Urban Development Zone (UDZ): The tax incentive’s sunset date has been extended by two years, from 31 March 2023 to 31 March 2025. o *Applicable to Trusts and Corporate Income Tax

INDIVIDUAL FILING SEASON

• Complete and submit tax returns by 21 October 2024 

TRUSTS | PROCEDURES AND CHANGES

When a Trust is set up, it must first be registered with the Master of the High Court. The Trust must then be registered with SARS for Income Tax. To register, click here on the SARS Online Query System (SOQS). Alternatively, book a branch appointment online for help to register a Trust. For more information, visit the Registering a Trust webpage.

Trust | Enhancements

The following enhancements were implemented based on legal and form changes: • Enhanced deduction for certain machinery, plant, implements, utensils, and articles used in renewable energy production to increase the appeal of the tax incentive by temporarily enhancing the current renewable energy tax incentive in section 12B of the Income Tax Act to encourage greater private investment in renewable energy. • Urban Development Zone (UDZ): The tax incentive’s sunset date has been extended by two years, from 31 March 2023 to 31 March 2025. • Loans, advances, or credit granted to Trusts by connected persons: The exclusion for acquiring a primary residence has been clarified, including funding for improvements to the residence. The limitations regarding the land on which the primary residence is located now also apply. • Public Officer: A new question has been added to the form wizard to confirm that the person appointed as a trustee has not been disqualified. • Donations: The donations questions have been updated to allow the taxpayer to enter up to 20 number of approved organisations, that the Trust donates to. • Request for Reduced Assessment (RRA02): A new feature has been introduced to manage requests for reduced assessments for companies under section 93 of the Tax Administration Act (TAA). Taxpayers must complete the Request for Reduced Assessment (RRA02) form, which will generate a case to determine whether they qualify for a reduced assessment. • Beneficial Ownership: Clarifications have been added to the Beneficial Ownership section to assist in completing information for unnamed beneficiaries.

Trust | Verification Enhancement

For the Revised Estimated Assessment: • If the ITR12T return you submit is routed for verification and there is no response to the request for supporting documents within the required period (after delivery of more than one request for such material), SARS may make a revised estimated assessment in terms of section 95(1)(c) of the Tax Administration Act. A notice of assessment (ITA34) will be issued, to notify you of the reduced/additional estimated assessment and the reason for the adjusted assessment. • You will have the option of submitting the outstanding supporting documents to SARS within 40 business days from the date of adjusted assessment, under section 95(6) of the Tax Administration Act. However, you may provide SARS with reasonable grounds and request an extension of this period, in terms of section 95(7) of the Tax Administration Act. • You can submit supporting documents via eFiling, the SARS Online Query System (online service), or by booking an appointment at a SARS branch. • If you do not provide the supporting documents to SARS within the required period, the estimated assessment will become final and not subject to objection or appeal.

Employer Filing Season The Employer Interim reconciliation opens 16 September 2024 to 31 October 2024 for the 2025 Employer Filing Season. The following enhancements have been implemented for the interim PAYE Filing Season: • A new source code has been added to the IRP5/IT3(a) certificate: • Source code 3926 was added relating to the savings withdrawal benefit. Specifically, a withdrawal from a Retirement Fund’s Savings Component/Pot. • Two source codes have been removed on the IRP5/IT3(a) certificate: • Source code 2039 was removed (“Employer Contact Person Fax Number”) • Source code 3137 was removed (“Employee Fax Number”) • Enhancements have been made to the financial fields on the IRP5 certificate: A warning message will be displayed if all digits of a financial field are the same e.g. 4444.00 • Updates to the employer statement of account: • The employer statement of account has been enhanced to display the status of payroll taxes. • The statement will now include Employment Tax Incentive (ETI) account balance. • Enhancements to the EMP501 Reconciliation process: • Directive validation module has been enhanced to allow for validation of multiple source codes for one directive number. • The employer will be prevented from requesting EMP501 reconciliation prior to the Interim Filing season start date, e.g. the employer requests an interim EMP501 reconciliation on 20 August 2024 before the start date, which is 16 September 2024. The request will be rejected. • The employer will also be prevented from submitting the saved interim EMP501 reconciliation on eFiling if the final EMP501 reconciliation has been submitted already. • Notification will be issued where an IT3(a) certificate with Income Tax reference number is submitted, and PAYE should have been deducted. • Enhancements to employer deregistration process: • Where amendments were made to the EMP501 reconciliation which is in the Excessive Liability Change (ELC) process, deregistration of payroll taxes will not automatically be re-instated. • The coding date of de-registration will always be set to a date later than the processed date of the last return. This date will not be considered if the Revised Declaration is submitted • Enhancements to ETI account: ETI refund and forfeit process has been enhanced.

e@syFile™

Improved performance and includes the following features: • Easier navigation and data capture experience has been prioritised with a new look-and-feel and arrangement functions and workflows. • Full installations with every software update. • Quick links to related functionality has been introduced to remove the need to continuously navigate through multiple menu items • Enhanced user maintenance functionality to add and remove users and restrict functionality • Both the old and new versions can operate on the same PC. • For the bi-annual submission, either the old or the new version of e@syFile™ Employer can be used to submit the reconciliation. • For the annual filing season, only submissions via the new version of e@syFile™ Employer will be accepted.  

UPDATES | CORPORATE INCOME TAX

The following Corporate Income Tax enhancements were implemented based on legal and form changes: • Tax treatment of an asset acquired as government grant in kind: If a taxpayer acquires an asset as or with a government grant, wear and tear cannot be claimed on the asset. This also means that even if the taxpayer uses the grant to buy another asset, that something cannot be depreciated either (for tax purposes). • Credit Agreements and Debtors Allowance: A new field for “Credit agreement and debtors’ allowance (lay-by) (s24)” will be added to the ITR14 return. This is an allowance that can be claimed in the current year, but it needs to be reversed in the following year. • Additional deduction in respect of learnership agreements: A deduction for learnership agreements can only be allowed if the agreement was entered into before 1 April 2024 and therefore a new validation question will be added to the ITR14 return asking the taxpayer to declare that the agreement was entered into before 1 April 2024. • Refinements to the Research and Development Tax Incentive: Together with the name change to “Department of Science and Innovation”, a new qualification question will be added to the “Tax Allowances / Limitations” container to allow taxpayers to indicate that their incentive approval was not withdrawn. • Expenses incurred in the production of interest: In terms of s11G, taxpayers must limit interest expenses to non-trading interest income. An adjustment field will be added to the tax computations for all company types, thereby allowing taxpayers to add back non-allowable interest. • Enhanced Deduction in respect of certain machinery, plant, implements, utensils and articles used in the production of renewable energy: The ITR14 will be updated to allow taxpayers to claim s12BA allowance. A container will be created for deduction details and qualifying questions. A validation will ensure that the taxpayers claim their 125% deduction. • Extension of the Urban Development Zone (UDZ) Tax Incentive sunset date: The UDZ tax incentive sunset date is extended by another period of two years from 31 March 2023 to 31 March 2025. • Request for Reduced Assessment (RRA02): New functionality has been introduced to manage requests for reduced assessments for companies under s93 of the Tax Administration Act (TAA). Taxpayers are required to complete the Request for Reduced Assessment (RRA02) form. A case will then be created to assess whether the taxpayer qualifies for a reduced assessment.

Guide Updates

GUIDES | EMPLOYER*

• IT-easyFile-G01 – Third Party Appointment AA88 e@syFile™TC Employer Guide – External Guide • PAYE-easyFileG01 – e@syfile™TC Employer Guide – External Guide • EMP-GEN-02-G01 – A Guide to the Employer Reconciliation Process – External Guide • PAYE-AE-06-G06 – Guide for Codes Applicable to Employees Tax Certificates 2025 – External Guide • PAYE-AE-06-G07 – Guide for Validation Rules Applicable to Reconciliation Declarations 2025 – External Guide • PAYE-AE-06-G08 – Guide for Completion and Submission of Employees Tax Certificates 2025 – External Guide • PAYE-GEN-01-G19 – Guide for Employers iro Employees Tax for 2025 – External Guide • GEN-VDP-02-G01 – Voluntary Disclosure Programme – External Guide

GUIDES | TRUSTS

• IT-AE-37-G02 – Step by Step Guide to complete your Trust Return via eFiling – External Guide • GEN-GEN-56-G02 – Submit Request for Reduced Assessment RRA02 via eFiling for Company or Trust – External Guide • IT-AE-36-G02 – Comprehensive Guide to the Income Tax Return for Trusts – External Guide

GUIDES | CORPORATE INCOME TAX

• GEN-GEN-56-G02 – Submit Request for Reduced Assessment RRA02 via eFiling for Company or Trust – External Guide • IT-GEN-04-G01 – How to complete the Income Tax Return ITR14 for Companies – External Guide • IT-ELEC-03-G01 – Guide to complete the company Income Tax return ITR14 eFiling – External Guide

Trust Filing Season

Trust Filing Season Open: • Submission Filing Dates :16/09/2024 to 20/01/2025 Registering the Trust: • Register for Income Tax with SARS within 21 days of registering with the Master of the High Court. All Trusts to file Income Tax Return: • Submit accurate tax returns even if the trust is passive or inactive. IT3(t) Third-Party Data Return for 2024: 30/09/2024 • Submit all amounts vested to beneficiaries for the 2024 tax year. Request for Reduced Assessment (RRA02): New functionality introduced for trusts to manage reduced assessment requests.

Individual Filing Season

Non- Provisional Individual Tax Return Submission Deadline: 21/10/2024 • Late submissions will be penalized.

Trust Verification Enhancement

Trust Verification Enhancement Implemented: • New procedures for submitting supporting documents if the ITR12T return is selected for verification and effect for non-submission.

Employer Interim Reconciliation

Employer Interim Reconciliation Period: 16/09/2024 to 31/10/2024 • Filing season for 2025 Employer Filing Season with updates to IRP5/IT3(a) certificates, financial fields, and ETI accounts.

Corporate Income Tax Changes

Corporate Income Tax Enhancements Implemented: • Changes include tax treatment for government grants, deductions for learnership agreements, refinements to R&D tax incentives, and more. Request for Reduced Assessment (RRA02): New functionality introduced for trusts to manage reduced assessment requests. Urban Development Zone (UDZ) Tax Incentive Extended: 31/03/2023 to 31/03/2025 • Extension of the tax incentive’s sunset date by two years.