Tax Season 2020 – SARS Automatic Assessments

The 2020 Tax season will be slightly different this year with SARS introducing the implementation of an automatic tax assessment system

The new automatic tax assessments will be divided into 3 phases:

Phase 1:
This will be from 15 April – 31 May and will be when all 3rd parties such as medical aid schemes, banks, insurance companies as well as employers will be required to fill their certificates to SARS for the 2020 tax season. Examples of these would include your IRP5/ IT3A certificate from your employer, your medical aid certificate or IT3B certificate. If you have not received your certificates please contact your service providers and ask them to send them to you

Phase 2:
This will be from 1 June – 31 August Tax payers will have the option to update their personal information such as banking details and contact details on the system I they have changed.
During this time SARS will also start to issue “automatic Self-assessments” to taxpayers who meet certain criteria based on their income.
The Criteria will be based on he information provided by 3rd parties and does not include additional income such as rental income etc.

Phase 3:
This will run from September 1 – January 31 2021 and is divided into 2 categories non provisional tax payers and provisional tax payers:

Non Provisional Tax payers – you may file from 1 September to 16 November 2020 if you are filing electronically, if you are filing manually at the office your cut off date will be 22 October 2020

Provisional Tax payers – you may file from 1 September to 31 January 2021 for both electronic and manual submissions.

Things to have on hand when filing your tax return:

  • IRP5/ IT3A certificates
  • IT3B certificates
  • Retirement annuity certificates
  • Medical aid certificates
  • Breakdown of rental income and expenses

Remember you have to declare any additional income such as rental income, capital gains, maintenance, winnings from gambling or large monetary gifts received from family.
Remember that even non-taxable income items such as maintenance received must appear on your tax return.

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Disclaimer: The material above is provided for general information purposes only and does not constitute legal or professional advice. Neither the author nor the publisher accepts responsibility for any loss or damage that may arise from reliance on information contained in this article.