17 Sep Personal Tax Season Springs In!
The Personal Tax Season has just opened from the 1st of September 2020 after being pushed back from COVID-19.
The deadline will still be the end of November for individuals not registered for provisional tax, which means that we will only have three months to file all returns.
If you have received your IRP5, Medical aid certificate, Retirement annuity certificate and sole trader bank statements, please send these to our incredible team of bean counters so that we can start preparing for your returns.
What is income tax?
It is the regular tax which is paid on your taxable income.
Taxable income is determined through:
- Remuneration (income from employment), such as salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits
- Profits or losses from a business or trade
- Income or profits arising from an individual being a beneficiary of a trust
- Director’s fees
- Investment income, such as interest and foreign dividends
- Rental income or losses
- Income from royalties
- Pension income
- Certain capital gains
Who Pays Income Taxes?
You are liable to pay income tax if you earn more than:
For 2021 (1 March 2020 – 28 February 2021)
- R83 100 if you are younger than 65 years.
- If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R128 650.
- For taxpayers aged 75 years and older, this threshold is R143 850.
For 2020 (1 March 2019 – 29 February 2020)
- R79 000 if you are younger than 65 years.
- If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R122 300.
- For taxpayers aged 75 years and older, this threshold is R136 750.
Step one: You Must Register For Income Tax
If you earn a taxable income which is above the tax threshold, you must register as a taxpayer with SARS.
If you are not yet registered, you would only be required to visit a SARS branch to register for the first time. All additional tax type registration can be performed from eFiling without having to visit a branch again. You can register once for all different tax types using the client information system.
Step two: You Must Submit A Return
If you are registered for income tax, you will be required to submit an annual income tax return to SARS. Every year, SARS announces its Tax Season, a period during which you are required to submit your annual income tax return.
The income tax return which should be completed by individuals is known as the ITR12 form. The updated ITR12 Comprehensive Guide will be available once the Tax Season opens.
If you would like us to handle your tax affairs, please send us your tax documents and information, and we will prepare your tax return as soon as possible. Also, feel free to contact us to discuss your requirements.