Who is required to Submit Third Party Returns?
The new third-party reporting requirements in terms of s26 of the Tax Administration Act were released 30 June 2023. This was released in the Notice 3631 Gazette 48867.
The persons specified must submit returns for 2023 and following years (previously the requirement was for years after 1 March 2023 as published in Government Gazette No 41512 dated March 2018).
What are the major changes to take note of?
- All S18A institutions must complete an IT3(d) form as per the amounts declared on the SA18A certificate - The submissions deadlines are as follows: 1 March-31 August period to be submitted by 31 October each year, and the period 1 March to 28 February to be submitted by 31 May each year.
- New trust reporting requirements. Trusts third part data is required to be submitted by completing an IT3(t) form disclosing any amounts vested in the beneficiaries (including capital gains and other income net of expenses). The due date will be the 31 May each year and first due date is May 2024.
Frequently asked questions
What is a third-party data return?
This is a tax certificate that SARS will cross-reference / triangulate back to a taxpayer so as to verify the correctness of tax declarations made by all parties.
Who must submit third-party returns?
The following entities must submit third-party data:
- Resident and Non-Resident Trusts that are required to submit a Tax Return.
- Banks
- Co-operative Banks
- Financial institutions
- Medical schemes
- Listed companies
- SOE's
- Organs of State
- Purchasers of livestock and timber
- S18A Institutions
- Property Practitioners and Attorneys who have trust accounts
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