How do I claim S18A deductions on the ITR12 return?
To claim donations made by the donor in a personal capacity, the following questions must be answered on the return wizard:
Do you want to claim donations made to an approved organization(s) in terms of s18A?
How many organizations did you donate to?
Upon answering these questions, the donation containers for both source codes 4055 & 4011 will open on the return.
Which container is applicable for donations made to S18A-approved institutions, other than the Solidarity Fund?
Select source code 4011 (4055 only relates to donations made to the Solidarity Fund during the period April 2020 and September 2020).
Which documents are required to support my S18A claim?
A valid section 18A certificate provided by a S18A-approved organization. If the donation was made through your employer, the IRP5 certificate issued by your employer will suffice.
Where will I see the donations made through my employer on my return?
The amount donated through your employer will be reflected on your IRP5 and will therefore be pre-populated under “Employee Tax Certificate Information [IRP5/IT3 (a)]” on your return
How will donations made to the Solidarity Fund during April 2020 to September 2020 via the Employer be indicated on the IRP5 Certificate?
If the donation to the Solidarity Fund was made through the Employer between 1 April 2020 and 30 September 2020, the amount donated will be reflected under the source code 4055 on the IRP5 Certificate and on your ITR12 return on SARS e-Filing. You are not required to capture this amount on your ITR12 return in order to claim a deduction.
How will donations made to the Solidarity Fund during 1 – 30 March 2020 and 01 October 2020 to 28 February 2021 via the Employer be indicated on the IRP5 Certificate?
For any donations made to the fund through your employer during 1 – 30 March 2020 and 1 October 2020 to 28 February 2021, the amount donated will be reflected under the source code 4030 of the IRP5 certificate issued by your employer. Please ensure to capture the amount reflected under code 4030 on your IRP5 certificate under code 4011 on your ITR12 return.”
Personal Income Tax enhancements implemented
Donations to the Solidarity Fund: Contributions made by a taxpayer to the Covid-19 Solidarity Fund during the period 1 April 2020 – 30 September 2020 qualify for a tax deduction:
For individuals the deduction will only be applicable to the 2021 year of assessment.
The new donation deduction of additionsl 10% is applicable to the donation to the Solidarity Fund (source code 4055).
If the excess donation amount, after allowing an amount under code 4011, is attributable to a donation to the Solidarity Fund, that portion is granted an additional 10% deduction (new source code 4055).
Any further excess will be consolidated and carried forward to the subsequent year of assessment under source code 4011. The deductible donation amount in the subsequent year of assessment reverts to 10%.
The following enhancements have been made to the Payments functionality on eFiling:
Payment process (SMS / email)
Payment Menu structure
Simplified bank details setup process.