JOHANNESBURG - The new threshold exempting those earning below R500,000 a year from submitting tax returns does not mean they are not obliged to pay taxes, the South African Payroll Association (SAPA) has clarified.
Last month, new South African Revenue Service (SARS) commissioner Edward Kieswetter, announced that the threshold had been increased from R350,000. This means those who earned below R500,000 between March 1, 2018 and February 28, 2019 are not compelled to submit a detailed outline of of their income, expenses and taxes paid.
However, all those who earned more than R78,150 during that period are still liable to pay taxes, SAPA executive committee member Jetro Malapane said in a statement.
"Some taxpayers are under the wrong impression that if they earn less than R500,000, they don’t have to pay tax," Malapane said.
"There is however a difference between the tax threshold and the tax return submission threshold. The tax threshold means that if you earn less than the tax threshold amount, you won’t have to pay tax. This amount for the 2019 tax year was R78,150."