SARS is continuing its journey towards becoming an innovative, modern organisation with unquestionable integrity.

The South African Revenue Service is focused on making it easy for taxpayers to comply with their legal obligations.

Here are the updates you need to know for this coming Filing Season for Individuals:

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‍Foreign Employment Income Exemption

SARS has redesigned the questionnaire for sections 10(1)(o)(i) and 10(1)(o)(ii). These sections deal with income earned by ship crew members and those qualifying for foreign income exemption.

The aim is to make it easier for taxpayers to complete their returns.

Contributions to Retirement Funds

If your assessment year is less than 12 months, there's now a pro-rata deduction for contributions to Retirement Funds.

The allowable deduction (currently R350,000) will be adjusted based on the number of days in the assessment year relative to 365 days.

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Tax-free savings

Where any person's year of assessment is less than 12 months, the contribution limitation stipulated in section 12T(4)(a) of the Act (currently R36 000) shall be adjusted.

The adjusted contribution limitation will apply in aggregate for any year or years of assessment during the 12 months commencing in March and ending at the end of February of the following calendar year.

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The solar tax credit

To encourage investment in clean energy, a one-year solar energy tax credit is available. This credit is applied to new and unused solar PV panels acquired and used for the first time between 1 March 2023 and 29 February 2024.

Individuals could deduct 25% of the cost of these panels, up to a maximum of R15,000.

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Changes to the ITR12 Form – Beneficial Owner (BO)

The taxpayer would complete the Details of Partners (excluding yourself) on ITR12 where applicable to align with the Beneficial Owner requirement.

These updates aim to simplify the tax filing process and encourage sustainable investments. They make it easier to comply with tax obligations while benefiting from available incentives.

Stay informed, make the most of these changes, and let SARS help you easily navigate your tax journey.

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Happy filing! Bring ease to your tax experience ->

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