Taxman extends individuals’ tax returns deadline to 2021

THE deadline for the submission of annual income tax returns for individuals has again been extended to 31 March 2021 from the end of this month.

This is the first time the taxman is extending the submission of the returns for such a long time, as the department grapples with smooth transition from the traditional physical returns to the online platform.

The Ministry of Finance’ Inland Revenue directorate announced the postponement yesterday, saying it would allow employers enough time to submit employee tax reconciliation returns.

These returns, as submitted by employers, are used to match the income and taxes, as paid by the employers, to the income and taxes employees use in completing their returns.

For salaried employees only, there should be no difference between what the employers submitted and what the employees submitted.

The ministry’s spokesperson, Tonateni Shidhudhu, said the submission by employers is a prerequisite before employees submit their annual income tax returns.

Previously, employers would submit returns by 31 March every year, but this deadline was pushed to the end of September to allow employees time to get the hang of submitting online.

Taxpayers have received the ministry’s integrated tax administration system (Itas) with mixed emotions. Though easy and effective, taxpayers are finding it difficult to harness its benefits and mainly complain that the ministry’s officials rarely assist.

Shidhudhu said the ministry is now calling on all employers to submit the Excel employees’ tax returns for the period March 2019 to February 2020 and seek help when they get stuck.

The spokesperson said the extension is only for the returns and not the payments.

The ministry has also extended the online penalty waiving incentive programme until March 2021 and the requirements to benefit from the incentives are that the taxpayer must be registered as an e-filer, and all returns should be submitted.

Shidhudhu said there are 10 518 companies that have not yet submitted spreadsheets on the Itas portal. He said despite several calls and campaigns to educate employers on how to submit the returns; it remains a challenge.

“We are carrying out a training programme for those companies as taxpayers. Our target is to ensure that these companies submit their returns by the end of November and the remaining months will be just for cleaning up,” he said.

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