The South African Revenue Service has announced the due dates for the filing of South African income tax returns for individuals and trusts.
The due dates vary and are dependent on the taxpayer “type” and the method used to submit the tax return.
The most important dates to bear in mind are as follows:
* Manual tax returns (those not filed electronically) are due on or before 23 September 2016
* Returns filed via SARS e-filing are due on or before 25 November 2016
* Returns filed electronically through the assistance of a SARS official are due on or before 25 November 2016
* Provisional taxpayers must submit their annual tax returns on or before 31 January 2017
Many taxpayers believe that they will get a refund when filing a tax return. This is often incorrect, unless they have retirement annuity funds, large medical expenses (not recovered from the medical aid), rental income losses etc. If the employer has withheld taxes at the correct rate (and the individual is not entitled to any deductions), a refund may not be due. In fact, it is possible that the taxpayer may owe SARS taxes.
A tax return is not required if a person:
* Earns remuneration less than R350 000 (for the year) from one employer
* The employer withheld monthly tax in accordance with the tax tables
* The individual did not receive any allowances e.g. travel allowances
* The individual earned interest income from a bank that is less than R23 800 (below 65 years old) or R34 500 (65 years or older)
As an example, Peter is employed as a manager on a full-time basis at a store. He has no other employment. He earns R180 000 for the year comprising salary of R170 000 and a R10 000 bonus. His employer withheld taxes on a monthly basis. Peter also has a bank account and earned interest of R300. In this instance, Peter is not required to file a tax return.
For those individuals who are required to file tax returns, it is not necessary to have access to a computer to file a tax return. Individuals are still able to file returns manually or visit a local SARS branch in order to file a tax return. When choosing this route, it is important to take all supporting documents such as IRP5 certificates, medical aid certificates, interest earned from banks, any retirement annuity fund contributions etc. This information should be retained safely even after submitting the tax return, as SARS may ask for it at a later stage i.e. don’t leave it at SARS!
There are many advantages to filing a tax return electronically via e-filing. The tax return is assessed immediately by SARS and the taxes due/refund due is immediately communicated to the individual. Any requests for information by SARS are made available under the taxpayers profile and a history of previous returns is available. Any objections may also be filed online.
Irrespective of the method used, taxpayers must be honest when completing the tax return. SARS has access to information from banks, employers and other sources, which it can use to compare against the information completed in the tax return.
* Vedika Andhee is the director for tax at EY.
* The views expressed here do not necessarily reflect those of Independent Media.
IOL