eFiling deadline – 1 September to 16 November 2020: Taxpayers who file online
Branch filing deadline: 1 September to 22 October 2020: Taxpayers who cannot file electronically can do so at a SARS branch by appointment
Provisional via eFiling deadline: 1 September 2020 to 29 January 2021: Provisional taxpayers who file electronically.
The tax-deductible limit for donations, currently 10 per cent of taxable income, has been increased with an additional 10 per cent in respect of donations in cash or of property in kind donated and actually paid or transferred to the Solidarity Fund from April 2020 to September 2020 of the donor to the Solidarity Fund. There will, thus, be a limit of 10 per cent for any qualifying donations and an additional 10 per cent for donations to the Solidarity Fund.
Below is a table reflecting an example of the calculations based on taxable income of R100 000:
Taxable Income
4011 Donation
4055 Solidarity Fund Donation
Allowable deduction for code 4011
Allowable deduction for code 4055
Allowable deduction for codes 4011+ 4055
Carry Over on code 4011
R 100 000.00
R 0.00
R25 000.00
R0.00
R20 000.00
R0 + R20 000.00
R5 000.00
R 100 000.00
R10 000.00
R25 000.00
R10 000.00
R10 000.00
R20 000.00
R15 000.00
R 100 000.00
R15 000.00
R5 000.00
R10 000.00
R5 000.00
R15 000.00
R5 000.00
R 100 000.00
R25 000.00
R10 000.00
R10 000.00
R10 000.00
R20 000.00
R15 000.00
R 100 000.00
R5 000.00
R15 000.00
R5 000.00
R10 000.00 + (R5 000.00)
R20 000.00
R 0.00
You must answer the following questions on the ITR12 wizard:
1. Do you want to claim donations made to approved organisation(s) in terms of s18A?
2. How many organisations did you donate to?
Donation containers for both source codes 4055 & 4011 will open on the return. Please ensure that you have an approved donation certificate provided by Solidarity fund and complete the amount next to source code 4055.
The amount donated through your employer will be reflected on your IRP5 and will therefore be pre-populated under “Employee Tax Certificate Information [IRP5/IT3(a)]” on your return.
You must answer the following questions on the ITR12 wizard:
1. Do you want to claim donations made to approved organisation(s) in terms of s18A?
2. How many organisations did you donate to?
The donation container on the return will open both source codes 4055 and 4011, where the donation to the Solidarity fund was made on a personal capacity, such amount will be declared separately under the donation container (4055). Please ensure that you have an approved donation certificate provided by Solidarity fund and complete the PBO number and donated amount as per certificate.
The amount must be reflected under the new source code 4055.
Any donations made to the Solidarity fund, over the limit made during the 2020/2021 tax year will be carried forward and deemed to be a donation made in the succeeding year of assessment (2021/2022) and be subject to the 10 per cent limitation in that year.
The donation amount will reflect on your IRP5/IT3(a)certificate from your employer under deduction section next to source code 4055. You must NOT include this amount under donation container on the ITR12 return, the amount from the IRP5/IT3(a) certificate will form part of your assessment (ITA34).
In order to report a new Estate Case to SARS, it is important that you submit the correct Supporting Documentation:
An image of yourself holding your proof of identity. It is important that your face and proof of identity are clearly visible in the same picture.
Please submit as many of the supporting documents that you have available of those listed below:
Deceased Estate:
Copy of the inventory (Form J243)
Copy of the last will and testament
Copy of the Acceptance of trust as Executor (Form J190) or Copy of the Letter of executorship (J238)
Copy of the Undertaking and acceptance of master’s directions (Section 18(3) Estates – Form J155) or Copy of the Letter of authority (J170)
The name, email address and telephone contact details of the executor or agent
Certified copy of the deceased and executor’s ID documents
In the case of an Agent, a Power of attorney and certified copy of ID of the appointed person
Copy of the signed final liquidation and distribution accounts when they become available
REV267 form – Return of information required in terms of section 7of the Estate Duty Act, Act 45 of 1955
Names, ID numbers and tax reference numbers of the heirs and legatees
The full names, ID number/date of birth and address of the surviving spouse
If any trust has been created in terms of the deceased’s will, furnish the name, address and contact details of the administrator
Copy of death notice of deceased (J294) issued by the Master’s Office or death certificate
Power of attorney.
Insolvent / Liquidation Estate:
Provisional and Final order of liquidation or sequestration
Masters reference number
Certificate of Appointment of the liquidator or trustee (J327)
Certified copy of the liquidator or trustee ID documents
The name, address/email address and telephonic contact details of the representative taxpayer or his/her agent
In the case of an Agent, a Power of attorney and certified copy of ID of the appointed person
Court order in respect of a failed business rescue case
1st meeting report (Creditors report)
2nd meeting report (Creditors report)
Signed copies of all liquidation and distribution accounts.
You are entitled to a deduction, under section 11F, of contributions to any pension fund, provident fund or retirement annuity fund. The contributions that may be claimed as a deduction in the current year of assessment are limited to the lesser of:
(i) R350 000;
(ii) 27,5% of the higher of –
• remuneration; or
• taxable income; or
(iii) taxable income of that person before –
• including any taxable capital gain.
The remuneration referred to is remuneration for employees’ tax purposes, but excluding retirement lump sums and severance benefits. The taxable income referred to excludes retirement lump sums and severance benefits, and is the taxable income before the deduction of qualifying retirement fund contributions, qualifying foreign tax credits [section 6quat(1C)] and bona fide donations (section 18A).
Contributions made in prior years that were not allowed as a deduction in those years will be carried forward to the current year of assessment unless they had been deducted from a retirement fund lump sum or withdrawal benefit, or set off against a compulsory annuity. Arrear contributions simply get added to the current year’s contributions and treated in the same manner.
The limits apply to the sum of all contributions made to pension funds, provident funds and retirement annuity funds. The deduction may be set off against non-trade income such as interest.
As an employer you can cancel a registration for employees’ tax if:
None of your employees is liable for payment of normal tax and you are not liable for payment of Skills Development Levy (SDL);
You have ceased to be an employer but still carry on trade;
