General tax questions - answered

In my first article about income tax I would like to address the general questions asked about tax and give some administrative details.

The first question is: Do I need to pay tax?

The short answer for this is that if you receive income from more than one source (salary, interest, fees, commission, etc.) you need to submit a tax return.

According to SARS if you earn less than R350 000 (before tax) a year from one source and do not want to claim any deductions (medical expenses or retirement annuities), then you do not need to submit a tax return.

My personal feeling is that if you paid tax during the year, then submit a return.

How do I submit a return?

You can submit your tax return at a SARS branch. Alternatively you can self admit through e-filling. The last option is to let your tax practitioner submit your return on your behalf. I would like to encourage you to make use of my services as a tax practitioner.

What if I am not registered as a taxpayer?

You must be registered as a taxpayer before you can submit a tax return. Unfortunately this can only be done at a SARS branch.

The following supporting documentation should be taken with you:

1.       Proof of Identity. Take your ID with a certified copy with you.

2.       Proof of bank details. Original letter of bank/ original bank statements not older than 30 days.

3.       Proof of address. There are various documents that SARS allow. Please see their website if unsure. Important is that the document should clearly state the taxpayer name (or initials) and surname and the physical address.

What if I am late with prior period returns or owe SARS outstanding taxes?

It is important to submit returns on time. There are different penalties and interest that SARS can charge on outstanding returns.

My advice is to rectify your situation as quickly as possible by submitting outstanding returns and then to make arrangements with SARS for paying the outstanding taxes. Doing this will avoid administrative penalties. In the long run this is the better option. SARS are committed to help taxpayers who contact their Debt Management department.

How do I pay my outstanding taxes?

You can make payments to SARS at a Bank, via e Filling or by electronic transfer. If unsure please contact me for assistance.

I have tried to deal with the general issues regarding the administration of income tax returns. Please forward this article to someone you know that may need assistance.

If you have any query please do not hesitate to contact me. As always my best personal service is promised.

Kind Regards,