Your Career Journey: Dealing with Personal Tax – Part 2

Introduction

In part one of this blog post, Kael Consulting explained the reasons why we need to pay personal tax. In this post, they will explain how we go about submitting a tax return.

personal tax... the struggle is real

Why Do We Pay Tax?

Submitting a tax return

As taxpayers, we are required to submit an annual income tax return. You should ask a tax practitioner to assist with your submission if any of the following applies to you:

  • You have more than one form of income,
  • earn commission,
  • have additional investments, or
  • you are the beneficiary of a trust.

Income tax returns can be submitted either at a SARS branch, or online via the SARS e-filing system.

Due dates

The tax season opens on 1 August for branch filers and 1 July for e-Filers. The deadlines for submissions are:

  • 31 October for branch filing;
  • 4 December for e-Filing and MobiApp submissions for non-provisional taxpayers (those who pay PAYE monthly);
  • 31 January for e-Filing for provisional taxpayers (those who do not pay PAYE monthly, for e.g. company directors and self-employed individuals).

Failing to submit an income tax return by the deadline may result in penalties.

Documentation required

To assist the annual submission process, be aware that some specific documentation may be required. Keeping it in order throughout the year will alleviate pressure during tax season. It includes:

  1. Logbook of business-related travel
  2. Receipts of business-related expenses such as cell phone, entertainment, stationery, gifts, etc.
  3. Any documentation relating to expenses incurred in generating additional income (e.g. rental income).
  4. Medical Aid Certificate and receipts of all medical expenses not covered by your medical aid.
  5. Retirement Annuity / Pension fund contributions made during the assessment year.

SARS recently announced that you don’t need to submit a personal income tax return if:

  • your annual income is under R 500,000 (five hundred thousand rand)
  • and you meet ALL of the following requirements:
  1. You only receive employment income for the full assessment year from one employer;
  2. You have no car allowance / company car / travel allowance or other income (e.g. rental income or interest) and;
  3. You are not claiming tax-related deductions (medical expenses, retirement annuities other than pension contributions made by your employer, or travel.)

If you comply, SARS has advised that you don’t need to submit an income tax return.

However, we suggest that you submit your income tax return each year. In this way you will ensure tax compliance and a complete tax record.

For example, financial institutions request an ITA34* when applying for financial assistance such as a home loan or vehicle finance.
*An ITA34 is the assessment of your income tax returns.

Conclusion

In conclusion, as South Africans and taxpayers in this country, we have the wonderful privilege and responsibility to contribute to our government’s income. This will enable them to perform the public services that we require of them. And, ultimately, we contribute to our country’s economy.

About Kael Consulting

At Kael Consulting, our vision is to partner with our clients – to help them achieve their business goals.  We are progressive and innovative and we are constantly looking for better, more efficient ways of providing accounting and taxation services to our clients.

Port Elizabeth is exceptionally entrepreneurial. We have had the privilege of working with individuals, start-up businesses and businesses further along their journey, which has been very exciting.

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