2024 tax year: General increase in compliance

31 January 2025 by Guest

Preliminary figures for the 2024 tax year show a general increase in compliance for provisional taxpayers and trusts filing their annual Income Tax Returns.

“Since the opening of the filing season, 543 252 provisional taxpayers had filed their annual Income Tax Returns for the 2024 tax year. This is 4.76% up from the 517 356 in the 2023 tax year,” the South African Revenue Service (SARS) said on Friday.

Additionally, taxpayers also filed returns that were outstanding from prior tax years.

In total, 162 690 provisional taxpayers filed returns for the previous years. This is down from 242 911 in the 2023 tax year. The ultimate total is 705 942 provisional taxpayers filed their returns.

With regards to trusts, SARS received returns from 84 134 taxpayers for the 2024 tax year, which is up from 68 890 for the previous tax year.

Moreover, there were 80 132 trusts returns for previous years, resulting in the overall total of 164 266 of trusts.

“The number of non-provisional taxpayers who filed their Income Tax Returns and those automatically assessed stands at 6 797 055. [Of these] 4 765 753 were auto-assessed for the 2024 tax year, which is 24.94% up from 3 577 239 from the previous year. As reported before, these taxpayers did not have to do anything, and SARS used vast data sources to auto-assess them and provide an outcome for them,” SARS said.

The filing season for provisional taxpayers and trusts closed on 20 January 2025.

SARS said the general increase in the number of provisional taxpayers and trusts filing returns is encouraging. However, there is still a long way to go to ensure acceptable levels of compliance in these categories of taxpayers.

“There is a noticeable increase on the filing of returns by non-provisional taxpayers. This comprises the use automatic assessment for non-provisional taxpayers, as well those who independently file their returns.

“This reflects a general increase in compliance in this category but undoubtedly, there is still long way to declare that every taxpayer, who is supposed to file their return, is dutifully fulfilling their legal obligation. Increasingly, SARS will focus on encouraging voluntary compliance in these categories of taxpayers,” SARS said.

SARS Commissioner Edward Kieswetter expressed his gratitude to all taxpayers, who have taken steps to fulfil their legal obligations.

“While SARS is pleased with the general increase in compliance, it is too early to declare victory. In this regard, SARS will continue to employ the latest technology, artificial intelligence, and data science to foster voluntary compliance by ensuring that transacting with the organisation is an effortless and seamless experience that will lessen the compliance burden.

“This will comport with SARS’s overall mission to realise our promise that ‘the best service is no service at all’,” Kieswetter said.

SARS said it is committed to providing clarity and certainty to enable taxpayers to fulfil their legal obligations. It is working to make it easy and simple for taxpayers to transact with the organisation through online platforms, such as eFiling.

“SARS and taxpayers each play a critical role in South Africa’s public finances. All categories of taxpayers, including trusts, and even economically inactive ones, must register for tax, file returns and pay on time. Non-compliance with tax law is a criminal offence and will attract penalties and interest,” the revenue service said. – SAnews.gov.za

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Fri, 01/31/2025 – 11:22

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