CAPE TOWN – To reduce the number of visitors to their offices, the South African Revenue Service (Sars) recently broadened the criteria for people who are not required to submit a tax return. If your total earnings for the 2018 tax year were no more than R350 000 you might not have to submit a return. However, while the prospect of not having to do your taxes might seem appealing, choosing to forego filing a return could result in you losing out on a healthy refund from the taxman.
Last year, Sars paid back R19.8 billion in tax refunds so, if you want a piece of this year’s pie, it’s advisable to submit your tax return before the deadline of October 31 to avoid penalties and reap the rewards.
“The cost of living in South Africa is on the rise, no thanks to things like rising fuel costs and the increase to VAT earlier this year. Being well prepared during tax season is just one way to ensure that consumers can try to cope with their increased expenses and even recuperate some of their expenditure from SARS,” says Taryn Schmidt, Wonga South Africa’s chief marketing officer.
As part of their continued focus on financial literacy, Wonga has outlined some important points about the 2018 tax year that financially savvy taxpayers should be cognisant of.
1. Not everyone needs to submit a tax return