Getting ready for tax

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BONUS - RUSTENBURG - Even though Filing Season is still a couple of month's away, it is very important to start off on the right foot. Here are a few pointers from SARS:

Tax Year-End: Closing mileage for vehicles
Individuals with travel allowances should prepare their supporting documents.
Without a logbook, you will not be able to claim the cost of business travel against your travel allowance.
You need to record the opening kilometres on the first day of March and closing kilometres on the last day of February each year. This must be disclosed to verify the total distance travelled in cases where the vehicle has been used for business purposes for only a portion of the total travel.
Apart from recording the opening and closing odometer readings for the year of your travel claim, you should also maintain a record of the actual business kilometres travelled for each trip.
What is a Travel Allowance?
A travel allowance is any allowance paid or an advance given to an employee for the use of a private motor vehicle in respect of travelling expenses for business purposes. Travel allowances can also be a fixed amount given to an employee to finance transport, or it can be used to reimburse expenses used for travel. Please note: travel between home and office does not qualify as business travel.
Reminder for businesses to submit third-party data
It is also that time of the year for businesses and employers to submit their third-party data to SARS.
Medical schemes, financial institutions, attorneys, banks, etc. have an obligation to submit their third-party data to SARS. The following are examples of data to be submitted to SARS and by who:
· IT3(b) submitted by Banks, Financial Institutions, Co-operatives for Amounts that became due or payable or were paid or received in respect of, or by way of any investment, rental of immovable property, interest, or royalty.
· IT3(c) submitted by Banks, Financial Institutions etc. for amounts paid in respect of the purchase and disposal of financial instruments.
· IT3(e) submitted by co-operatives who purchased livestock, produce, timber, ore, mineral or precious stones from a primary producer other than for retail purposes
· IT3(s) submitted by Banks, Co-operatives, Long-term insurers for amounts received by or accrued to a natural person in respect of a tax-free investment
· IT3(f) submitted by all retirement annuity contributions made by the member, for the year of assessment and all medical contributions made by the member for the year of assessment. Included in the record should be all expenses not covered by the medical aid and number of dependants
· Dividends Tax: Submitted by South African tax resident companies.
Employers are to submit third party data by the end of May each year via our online channels. Don’t forget to activate the online channels under “Enrol 3rd Party Data” on eFiling.
Reminder to Submit Company Income Tax (CIT) Returns by 28 February
Company Income Tax Returns (ITR14) are due on 28 February 2022. In addition to annual Company Income Tax returns (ITR14), companies are required to submit Provisional Tax returns (IRP6) and make payment by 28 February 2022.
These returns are to be submitted every six months after your company year-end and must contain estimated figures of the total income earned for that period and taxes paid over in respect of the income estimates for that period.