COVID 19 Tax Benefit and Relief Measures

Due to the covid-19 pandemic, SARS has put in some measures in place for companies who are not submitting their EMP501’s and IRP6’s timeously. The emphasis being that more than ever before taxpayers need to be compliant.

SARS has designed the filing season 2020 for personal taxes covering 3 phases:

  • Phase 1 – April 15 to May 31 2020 – Employer and third-party filing.
  • Phase 2 –June 1 to August 31 2020 – Taxpayers to update their files (Bank Acc, addresses etc) / SARS to follow up with non-compliant Employers/Third-party data providers  / Auto Assessment of certain taxpayers and possible early filing for some taxpayers
  • Phase 3 – September 1 to January 31 2021 – Tax filing for the remaining taxpayers.

The due date for the submission of IRP5’s and all third-party data (Bank interest certificates, Pension certificates, Medical certificates) is May 31, 2020. Failure to submit will results in criminal prosecution as from June 1, 2020 to August 31, 2020. 

As from April to August 31, SARS will auto assess taxpayers who only have one IRP5. Taxpayers will have an opportunity to accept this auto-assessment, and if not accepted, will be required to submit their returns later in the year.

SARS has delayed the tax season to only open September 1 instead of normal July 1. 2020 date. However certain taxpayers will be allowed to file their returns before September 1, provided that their employers and third -party data providers are tax compliant. All taxpayers to whom phase three is applicable will be notified by SARS.

The tax season deadlines for non-provisional taxpayers has been moved to November 16, 2020 and for provisional taxpayers to January 31, 2021.

The onus is on all the employers in ensuring that all tax returns are submitted and deferred payment arrangements are made timeously.

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