Tax Compliance Improves in South Africa

December 5, 2014 Taxation in South Africa

PRETORIA – A rising number of taxpayers in South Africa are filing their tax returns on time, and are increasingly relying on electronic filing methods.

On December 4th the South Africa Revenue Service (SARS) issued a new statement detailing the preliminary results of the 2014 tax season, showing that tax compliance in the country has shown a significant improvement over the previous year.

According to the SARS, by November 21st a total of 4.05 million individuals had submitted their tax returns for the year, a level equivalent to 94.49 percent of all taxpayers who were required to submit their returns.

The level of on-time compliance is a 10.14 percent improvement over the previous year, when only 3.69 million taxpayers submitted their returns on time.

It was noted that the total number of tax returns due in 2014 is lower than in 2013, when 6.09 million taxpayers were required to submit returns, with the decrease in submissions attributed to an increase in the reporting requirement threshold.

It was also noted that the SARS’s efforts to increase the use of electronic filing mechanisms is paying off, with nearly 99.91 percent, and 94.98 percent of all returns were assessed within 3 seconds of being submitted.

Photo By: Sebastien Wiertz