Are you exempt from submitting a tax return for 2023?

Most taxpayers will have to submit their income tax returns for the 2023 year of assessment once tax-filing season opens on 7 July.

The tax-filing deadlines this season are as follows:

• For non-provisional taxpayers: Monday, 23 October 2023.
• For provisional taxpayers: Wednesday, 24 January 2024.

As reported on 26 June, individual taxpayers who are auto-assessed and who agree with the auto-assessment do not have to submit a tax return. Auto-assessed taxpayers who do not agree with the assessment must file a tax return.

Read: Sars announces deadlines and changes for 2023 tax-filing season

Auto-assessed taxpayers who agree with their auto-assessment are not the only taxpayers who will not have to file a tax return.

Notice 3540 published in Government Gazette 48788 of 14 June 2023 sets out which taxpayers do and do not have to submit a tax return.

Who does not have to file a return?

A natural person (individual taxpayer) or an estate of a deceased person is not required to submit a return if his or her gross income consists solely of one or more of the following:

• Remuneration not exceeding R500 000 from a single source and employees’ tax has been withheld for that remuneration.
• Interest from a South African source (excluding a tax-free investment) not exceeding
  • R23 800 for a person younger than 65 years;
  • R34 500 for a person who is 65 years or older; or
  • R23 800 for a deceased person’s estate.
• Dividends where the individual was a non-resident throughout the year of assessment.
• Amounts received or accrued from tax-free investments.
• A single lump sum received from a pension fund, provident fund, pension preservation fund, provident preservation fund, or retirement annuity fund and employees’ tax has been deducted in terms of a tax directive.

Please note that the above exemptions do not apply if an individual

• was paid or granted certain allowances or advances relating to business travel, accommodation, or subsistence,
• was granted taxable benefits relating to the use of a motor vehicle, or
• received or was granted any amount for services rendered outside South Africa.

Who must file a tax return?

Individual taxpayers who meet any one of the following conditions are required to submit a tax return:

• A resident and carried on any trade (other than solely as an employee).
• A non-resident and carried on a trade in South Africa (other than solely as an employee).
• A resident and made capital gains or incurred capital losses exceeding R40 000.
• A non-resident and had capital gains or losses from the disposal of any asset.
• A resident and held foreign currency or owned assets outside South Africa that had a total value of more than R250 000 at any stage during the year.
• A resident to whom any income or capital gains was attributed.
• A resident and held any participation rights in a controlled foreign company.
• A resident who had a taxable turnover.
• At the end of the tax year, you were
  • under the age of 65 years and your gross income exceeded R91 250;
  • between the age of 65 and 74 years and your gross income exceeded R141 250; or
  • 75 years or older and your gross income exceeded R157 900,

unless the conditions mentioned above under “Who does not have to file a return?” apply.

If you were a non-resident and earned South African-sourced interest, you must submit a return if

• you were present in South Africa for 183 days in total in the 12 months before receipt or accrual of the interest; or
• the debt from which the interest arises is connected to your permanent establishment in South Africa.

Estates of deceased persons that received gross income must submit a return.

Notwithstanding any of the above, you must submit a return if the South African Revenue Service requests you to do so.

Companies, other juristic persons, and trusts

All resident trusts must submit a tax return.

A resident company or a resident juristic person must submit a tax return if, during the year of assessment, it

• had gross income of more than R1 000;
• held assets with a cost of more than R1 000 or liabilities of more than R1 000 at any time;
• derived any capital gain or incurred any loss exceeding R1 000 from the disposal of an asset; or
• had taxable income, taxable turnover, an assessed loss, or an assessed capital loss.

Every non-resident company, trust, or juristic person must submit a return if it

• carried on a trade through a permanent establishment in South Africa;
• derived South African-sourced income; or
• derived any capital gain or incurred any loss from a disposal of an asset.

Every South African incorporated or stablished company that is not a resident in South Africa because of a double-taxation agreement must submit a return.

Disclaimer: The information in this article does not constitute financial planning, legal or tax advice.