PRETORIA - As the South African Revenue Service (SARS) announced an increased tax return threshold on Tuesday, associate professor of accounting sciences at North West, Herman Viviers, has warned taxpayers to be cautious and not ignore filing their normal tax returns.
SARS on Tuesday announced that all taxpayers whose total employment earnings are less than R500,000 will now not be required to submit personal income tax returns (ITR12).
“It is a large increase. People should be very wary, not simply ignore filing their normal tax returns as there is always the possibility of getting a tax refund due to additional tax deductions and/or tax credits only allowed upon assessment," Viviers said.
"The main reason for SARS lifting the threshold is that it lessens their administrative burden of processing tax returns from the lower income-earning group. The less returns submitted the less admin for them."
SARS also said taxpayers who would not be required to file their income tax this year include those who only receive income from a single employer, those who have no other form of income such as car allowance, business income, taxable interest, and rental income, and those that do not have any additional deductible income such as medical expenses, retirement annuity contributions and travel expenses.