At C2M, we are committed to keeping you informed about the latest tax compliance requirements and ensuring your organisation remains in good standing with SARS. Below are two important updates that may affect you:

 

  1. IT3(d) Data Submission for Public Benefit Organisations

SARS has introduced new legislation requiring all Public Benefit Organisations (PBOs) registered under Section 18A to submit an IT3(d) declaration every six months. Even if your organisation does not receive donations, this submission is mandatory.

The deadline for submitting your IT3(d) third-party data declaration is 31 October 2024, covering the period from 1 March 2024 to 30 September 2024.

Failure to comply could result in:

  • Administrative penalties.
  • Loss of donor support due to the inability to provide Section 18A tax deductions.
  • Possible loss of your PBO’s tax exemption status, resulting in further non-compliance with SARS.

We understand that many PBOs face challenges in handling this submission, especially those with limited technical resources. Fortunately, several third-party platforms are available to assist with this process.

 

  1. Leaving South Africa and Moving Abroad? What You Need to Know About Your Tax Residency

If you’re planning to relocate abroad, it’s essential to manage your South African tax residency status carefully. Failing to cease your South African tax residency could result in double taxation on your worldwide income.

Tax residency in South Africa is determined by either the Ordinary Residence Test or the Physical Presence Test:

  • Ordinary Residence Test: You are considered a tax resident if South Africa remains your principal or usual place of residence—the place you return to after travels.
  • Physical Presence Test: You are considered a tax resident if you meet all three of the following criteria:
    • Present in South Africa for more than 91 days in the current tax year.
    • Present in South Africa for more than 91 days in each of the preceding five tax years.
    • Physically present in South Africa for more than 915 days in total over the preceding five tax years.

Our knowledgeable team can help you understand how your residency status impacts your taxes and international money transfers. We’ll ensure you avoid double taxation and make the most of available savings.

Contact us today to discuss your situation and how we can assist with your tax affairs when moving abroad.

Best regards,

C2M Chartered Accountants

 

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