It’s our mission to keep you on top of tax deadlines so you are 100% in control of your company’s taxes. We’ve rounded up the most important deadline dates coming your way in 2012 so you can diarise them now and start preparing.

We’ve also highlighted some new tax rules that kick into effect in the New Year, so you know exactly what to expect.

Take a look:

1.    Give SARS an IT14SD to clear your name

In November 2011, SARS introduced a new form that companies must complete. Called the IT14SD, it’s basically a declaration where you reconcile your information for PAYE, income tax, Vat and Customs. SARS uses it to check if there’s any mismatch in the information you supply to SARS.

2.    Submit your provisional tax return by 29 February 2012

If you submit your provisional return late, SARS will slap you with administrative penalties, ranging from R250 to R4 000 for each month the submission is late. Late payment of the actual tax sees another 10% added to the penalty amount. Ouch!

The bad news is that you can’t escape the penalty. But you can shrink the interest charges by using the voluntary third payment.

3.    On 1 March 2012, kiss medical aid deductions goodbye!

In the 2011 Budget Speech, the Minister of Finance announced the proposed conversion of medical deductions to medical tax credits, with effect 1 March 2012. What’s more, SARS has approved the new list of medical expenses that will qualify for a deduction.

4.    Dividends Tax comes into effect on 1 April 2012

South Africa is phasing out the Secondary Tax on Companies (STC) paid on company dividends. And that this is being replaced by a withholding tax on dividends (WTD).

Caution! Management or shareholders of the company paying the dividend could become personally liable for the tax, penalties and interest if they get it wrong.

5.    Section 11(bA) deductions dry up on 1 April 2012

The Tax Laws Amendment Bill (TLAB) is proposing that Section 11(bA) be deleted from our tax laws. It applies to interest or finance charges you incur when you buy assets for your business – but before you actually bring the assets into use. It allows you to accumulate the interest, known as pre-production interest – and then deduct it as a lump sum in that same year of assessment.

6.    Your PAYE annual reconciliation will be due on  31 August 2012

By now, you should have the process of submitting EMP501s and EMP201s down to a fine art!

7.    The property tax break expires on 31 December 2012

SARS has a tax break for you – a property transfer window period. It allows you to transfer property out of a trust, CC or company and into your name and without paying Capital Gains Tax (CGT) (paragraph 51A of the Eighth Schedule to the Income tax Act, Secondary Tax on Companies (STC) transfer duties as well as dividends tax.

Carrie-Anne Diniz

CentsAccountability

Source: Tax Bulletin – For more tax and VAT tips from some of SA’s top tax experts.

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