Do you need to submit a Tax Return?
Tax Return Submission – ITR12 (Individuals)
Thinking about whether you are liable to submit an annual tax return?
Maybe just flip a coin and let luck decide on that?
Sorry, but it’s not as simple as that, and not following the correct SARS filing process could land you in hot water with the “TAXMAN”.
Trust me guys, nobody wants to be non-compliant and have an outstanding debt or a bad track record with SARS!!
SARS uses the following criteria to determine if you are liable for submitting an Annual Income Tax return:
If you are a South African resident:
Who earns a salary of less than R 500 000 from a single employer and your employer deducts monthly PAYE; and
You earn investment income not greater than R 23 800 (under 65) or R 34 500 (over 65); and
You have no other additional income, capital gains, rental income, or business income and no additional deductions
then you do not have to submit a tax return.
Auto assessments – 2020 tax year – If in terms of the above criteria you do have to file a tax return, then you could make use of SARS’s auto assessment process. SARS has introduced this facility in 2020, whereby they record all income and deductions that they have a record of, and they issue an auto assessment via the e-filing platform. Taxpayers should be wary of using this process for the following reasons:
It is a new system, so SARS may not take all income and deductions into account.
If there are errors on the return, and the taxpayer accepts the auto assessment, then the taxpayer will have to follow a protracted objection process to rectify the error.
If you are a non-South African tax resident, you will not be required to submit a tax return if you only received dividends from a South African source but this changes if the taxpayer received interest, disposed of assets resulting in capital
gains or receiving other business income.
The above process at times could be a challenging and complex task and it is strongly advised to consult a tax practitioner to ensure a smooth transition.
Due dates for the 2020 tax season for individuals are as follows:
22 October 2020 – manual filing at a SARS branch (now closed)
16 November 2020 – non-provisional taxpayers filing electronically on SARS E-Efiling.
29 January 2021 – provisional taxpayers filing electronically on SARS E-Efiling.
Contact the 118 team on admin@118accounting.co.za should you require any further clarification or tax advice.