Income tax returns and assessments

Highlights
Taxpayers have to submit income tax returns annually.

Filing of returns and assessments
The South African Revenue Service (SARS) issues income tax returns annually to registered taxpayers, on request, at the end of each tax year. Companies have tax years that coincide with their financial years while individuals have tax years, which commence on 1 March. The tax returns have to be filed within a prescribed period of time. For individuals, a date is determined by SARS each year, while corporates are given a period of 12 months after the entity’s financial year-end, within which to submit their returns. SARS will assess the tax that is due or refundable based on the return submitted.

From the 2009 tax year the tax return for individuals is customized to cater for individual circumstances. The tax return is pre-populated by SARS with the information provided solely by the employer but it will need to be verified with the IRP5/IT3A.

Tax returns can be submitted using the SARS e-filing facility or manually.

Administrative penalties
If a company or individual fails to comply with the administrative requirements as prescribed by SARS, a fixed or percentage based penalty could be imposed for non-compliance. The penalty is based on tables prescribed by SARS which automatically increases by the same amount or part thereof each month if the person or company fails to remedy the non-compliance within 30 days.