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Are you (almost) ready for the 2024 tax season?

The 2024 tax season dates are yet to be announced but it is not too early to make sure you are ready. We are here and we are committed to you. We will assist you with the submission of your 2024 tax return.

For the 2024 tax season the following three aspects are important:

Keep records of solar tax credit supporting documents

In the 2023/2024 tax year individuals, who install rooftop solar panel(s), are allowed to claim a rebate of 25% of the cost of the panels. The rebate is subject to a maximum of R15,000 per taxpayer. Taxpayers must make sure to file the following documents:

  • VAT invoice received from the supplier, which specifically indicates the cost of the solar panels.
  • Compliance certificate confirming that the solar panels have been first brought into use during the period from 1 March 2023 to 29 February 2024.

Organise your tax affairs, especially if you work remotely from South Africa 

Tax non-compliance is a significant focus aspect of the government. The prevalence of digital nomads and remote work are important tax areas requiring professional and expert tax assistance. Possible changes to tax legislation may have a significant tax impact. Please contact us for assistance in evaluating your tax affairs.

Review your short-term (and, equally important) longer-term qualifying annuity tax benefits

This applies to retirement annuity funds, provident funds, and pension funds (i.e. qualifying annuities).

What are the short-term qualifying annuity tax benefits?

Section 11F of the Income Tax Act, 58 of 1962 provides an annual tax relief to taxpayers up to a maximum rate of 27.5% of the taxable income or the remuneration of the taxpayer. The maximum Rand limit of the tax relief is R350,000. The calculation of the tax relief you will be entitled to will depend on your specific circumstances. Should your annual contributions to your qualifying annuity exceed the tax relief, the excess will roll over to the next tax year.  Please contact us to assist you in determining the tax relief you are entitled to.

What are the longer-term qualifying annuity tax benefits? 

The Income Tax Act provides, upon the withdrawal from a qualifying annuity, due to retirement, death, or retrenchment, that the first R500,000 of the lump sum payment will be tax-exempt. It is important to take into account the extent to which prior withdrawals made from the qualifying annuity will have an impact on the available tax-exempt portion. Please contact us to assist you in this calculation.

Section 10C of the Income Tax Act was recently amended to provide the taxpayer with an additional longer-term tax benefit. Upon retirement from a qualifying annuity taxpayers will be allowed to increase the general tax-exempt limit of R500,000 to the extent to which SARS did not in previous tax years allow the excess contributions as a deduction from the taxable income of the taxpayer. The benefit associated with this provision speaks for itself.

What does our commitment to you mean? 

We have the required knowledge and experience to assist you. Please provide us with your tax documentation. We will ensure that your current financial situation, as reflected in your tax documentation, reconciles with the data on your tax return.