Missed the South African tax deadline? Here's what to do.
Time is ticking, and SARS means business. If you've missed the tax deadline, it's essential to take action to avoid hefty penalties.
Late tax return penalties in South Africa
In December 2021, SARS made significant changes to its legislation, bringing in administrative penalties for late tax returns, even if it's just one return that's overdue. Up until this change, taxpayers only faced penalties when two or more returns were outstanding. Crypto investors who are struggling to understand their tax liability should be aware that SARS is imposing administrative penalties for ALL outstanding returns from 2007 to 2020, and these penalties could add up quickly.
How much will the penalty for filing a late tax return be?
The administrative penalty for a late return is based on your taxable income and comes with a potential monthly fee ranging from R250 to a substantial R16,000. The longer you delay, the more you'll end up paying.
What to do if you missed the South African tax deadline?
So, what can you do if you missed the filing deadline? First and foremost, don't panic. It's never too late to make things right. Start by filing your overdue returns immediately to minimise the penalties you face. If you don't know where to start drop us a message and we can put you in contact with one of our South African tax advisor partners.
Crypto tax software for South African investors
Using a reliable crypto tax calculator tool like Recap can simplify the process of calculating your tax liability for your cryptocurrency transactions. Simply connect your accounts like Luno and VALR and our software classifies your transactions, applies pricing valuations and calculates your capital gains and income from crypto. This can be a real game-changer, especially if you've been actively trading in the crypto market and have lots of transactions and historical activity.
Unlike other crypto tax softwares that charge per tax year report, with Recap your annual subscription provides access to all tax reports in your crypto history making us a really cost effective option for anyone needing to file outstanding returns.
Remember, it's more crucial than ever to meet the tax deadlines and avoid unnecessary penalties. Filing even a day late can lead to financial consequences you'd want to steer clear of. Stay proactive, take charge of your tax obligations, and get back on track. Your financial future will thank you for it!