Over 190,000 South Africans File Tax Returns as SARS Embarks on Tax Season 2024

Tax season in South Africa has commenced with a significant response from taxpayers, as confirmed by the South African Revenue Services (SARS). Within the first day of the 2024 filing season, which officially opened on July 15, a staggering 191,000 provisional and non-provisional taxpayers have diligently filed their returns. This marks a robust beginning to the current tax cycle, reflecting the taxpayers' compliance and the efficacy of SARS' digital facilities.

The figures were provided by SARS Commissioner Edward Kieswetter during a media briefing on the progress of Tax Season 2024. Kieswetter shared that an overwhelming majority, specifically 183,000 of these returns, were filed using the convenience of the SARS e-filing platform and mobile application. This digital shift towards electronic filing emphasizes the pivotal role technology plays in modernizing tax administration and making the process more seamless for taxpayers.

In addition, close to 7,700 returns were processed through SARS' Taxpayer Service Centres, indicating that while digital submission is on the rise, physical channels remain significant. SARS strives to cater to all preferences, ensuring that everyone has access to the necessary services to comply with their tax obligations.

Looking forward to the rest of the season, the anticipation is set high. SARS expects to issue around eight million assessments for the 2024 tax year by January 20, alongside processing returns from previous years. Remarkably, five million of these assessments have already been auto-assessed, which was a service running from July 1-14 for an expanded pool of taxpayers.

Kieswetter enthused about the high digital engagement with taxpayers during the initial weeks of July, noting over 16 million digital exchanges. SARS had witnessed an impressive one million user interactions daily, with the interactions peaking to approximately 1.9 million on the opening day of the tax season.

Efficiency levels during this period have been promising, with all returns submitted on the first day already assessed, meeting and in many cases exceeding, SARS' aspiration of providing assessments within five seconds. However, SARS has also highlighted limitations in responding to taxpayer inquiries over the phone, with only 15,000 calls serviced out of the 57,000 received, underscoring an area in need of capacity enhancement.

Kieswetter reported that 5.5 million taxpayers had been assessed since July 1, translating into potential refunds of R17 billion. Generously, R10 billion has already been disseminated to taxpayers, with an additional R4 billion expected to be paid within 72 hours, barring any specific withholdings. Withholdings typically denote incomplete verifications or other outstanding checks that taxpayers are advised to resolve promptly.

As SARS navigates through tax season, they emphasize the importance of taxpayers ensuring all details are accurate and all matters are resolved. This proactive approach will facilitate the timely issuing of refunds where applicable and keep the system running efficiently.

With this proactive beginning, SARS sets an encouraging precedent for the rest of the tax season, showcasing a system that benefits both the revenue service and the taxpayer community through swift processing and clear communication.

This news piece offers insight into the advanced state of South Africa's tax system and reflects positively on the dedication of SARS to maintain a smooth and efficient tax filing season for all.