In response to COVID-19, the South African Revenue Service (SARS) has tried to simplify the tax filing process for individual taxpayers and remove the need to visit branches.
SARS has introduced a four-phased approach to filing season this year
1. Phase one
Employers and other third-party data providers, like investment managers and medical aid schemes, were required to submit their data to SARS. This needed to be done by 31 May 2020.
2. Phase two
SARS validates the third-party data and follows up with those third parties who have not submitted the data on time.
3. Phase three
This is the “auto-assessment” process and it starts on 1 August 2020. A significant number of taxpayers will receive an SMS from SARS to confirm that SARS has used third-party data to prepare their tax returns on their behalf and that a draft assessment is available on eFiling or the SARS MobiApp for them to review.
Some taxpayers may receive communication from SARS before 1 August 2020 explaining why they have not been auto-assessed, for example, if they have outstanding tax returns that need to be filed.
4. Phase four
Taxpayers who have not been auto-assessed, or who have not accepted an auto-assessment, can then start to file their tax returns via eFiling or the MobiApp from 1 September 2020. Taxpayers who cannot file through the digital platforms will be permitted to visit a SARS branch by appointment only.
Allan Gray have put together a very nice article explaining this approach.
To read the article, please click here.
Please note that WPS does not give tax advice and you should always consult a qualified and licensed professional for advice.