South Africans can now begin applying for tax deferrals through the South African Revenue Service (SARS), who said on Monday 25 May that the respite will allow taxpayers to alleviate their cash flow problems during the COVID-19 pandemic.
The deferrals will only be available to applicants who can prove substantial and material financial hardship that has befallen them due to the crisis.
Taxpayers seeking deferrals will need to arrange an installment payment process that will be free of penalties by reaching out to SARS dedicated email address for the COVID-19 pandemic, with small to large businesses as well as individual citizens eligible for relief.
SARS said that the applications should comprehensively detail the period requiring deferral as well as the specific burdens being shouldered by the applicant. Applications will be handled on a “per entry basis”.
Changes to tax season 2020.
On May 5, SARS announced new tax filing seasons and a much more heavy-handed approach to companies who are not submitting their EMP501’s and IRP5’s timeously.
SARS has put in place a three-phased approach:
Phase 1 – April 15 to May 31 2020 – Employer and third-party filing.
Phase 2 –June 1 to August 31 2020 – Taxpayers to update their files (Bank Acc, addresses etc) / SARS follow up with non-compliant Employers/Third-party data providers / Auto Assessment of certain taxpayers and possible early filing for some taxpayers
Phase 3 – September 1 to January 31 2020 – Tax filing for the remainder.
Due dates for the submission of IRP5’s and all third-party data (Bank interest certificates, Pension certificates, Medical certificates) is May 31, 2020.
During the period up to August 31, SARS will auto-assess taxpayers who only have one IRP5. The taxpayers will have an opportunity to accept this auto-assessment, and if not accepted, will be required to submit their returns later.
For all other taxpayers, SARS has delayed tax season to only open on September 1, whereas in previous years, it opened on July 1. SARS will notify taxpayers to whom phase three filing applies.
Tax season deadlines for non-provisional taxpayers will be November 16, 2020 and provisional taxpayers will be January 31, 2021.
Read more:https://www.2oceansvibe.com/2020/05/15/sars-announces-changes-to-tax-season-2020/#ixzz6Nc9iMhJN
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