Industry updates | February 2024
Please take note of the following industry updates that may be relevant to you and your business.
COMPLIANCE AND ADMINISTRATION
Due dates for reporting and payments- February 2024:
TAX ADMINISTRATION
1. Beneficial ownership – CIPC
It is now mandatory for a Company, Closed Corporation, and Trust to disclose its beneficial ownership/ shareholder and shareholding information to CIPC. This is done via BizPortal or the CIPC website. Fines will be levied for any entity that does not comply. Please ensure that you are compliant sooner rather than later.
2. Implementation of estimated assessment on VAT
On 11 December 2023, SARS announced that the estimated assessment functionality had been implemented on the Value-Added Tax (VAT) system. In the event that a vendor does not provide the relevant material requested by SARS during the VAT verification process, SARS may raise an estimated assessment in terms of section 95(1)(c) of the Tax Administration Act, No. 28 of 2011 (the TAA).
SARS has provided the following information regarding the VAT estimated assessment:
• The detailed reasons for the estimated assessment will be provided and can be viewed on the notice (VAT217) issued to the vendor.
• A Request for Correction will not be allowed if SARS has raised an estimated assessment for VAT in the same period.
• If the vendor does not agree with the estimated assessment, the required relevant material must be submitted within 40 business days from the date of the VAT217 notice that was issued.
• The vendor can submit the outstanding relevant material via eFiling, at a SARS branch or through the SARS Online Query System (SOQS).
• The vendor may Request for Extension if the relevant material cannot be submitted within 40 business days.
• If the Request for Extension is approved, the vendor will have up to the date of extension or five (5) years plus 40 business days to submit the relevant material.
• The vendor will be allowed to submit a Request for Suspension of Payment if the estimated assessment results in an amount payable for the period stipulated in the VAT217 notice issued.
• The vendor will not be allowed to submit a Notice of Objection (NOO) as an estimated assessment issued in terms of section 95(1)(c) is not subject to dispute
3. The second Provisional tax return for the 2024 tax year- due 29th of February
All individual taxpayers that are registered as provisional taxpayers, as well as all companies with a February year end, your second provisional tax return is due to SARS by the 29th of February. Please ensure that your calculations and submissions to SARS are made before the deadline. SARS will be issuing 10% admin penalties on the tax amount owing to them for all late submissions.
- Domonique Ramos | 1 February 2024