Below are a few frequently asked questions that we'll briefly discuss about Individual Income TAX Returns.
Should you file a TAX return?
If you earned less than R500 000.00 during the 2020/2021 year of assessment (between 1 March 2020 and 28 February 2021), you do not have to submit an income TAX return, provided that:
- You only have one employer. However, if you have more than one source of income (eg. second employer, rental income etc.), you’ll need to file a TAX return, even if the combined income is still less than R500 000.00.
- You have no car allowance
- You are not claiming for TAX deductions (eg. medical expenses, travel expenses etc.)
Any interest you received from a source in South Africa are less than:
- R23 800.00 if you are under the age of 65
- R34 500.00 if you are over the age of 65
Reasons why you should file a TAX return?
- Refunds: depending on your situation, there may be many reasons why you should get money back from SARS. This may be because you paid too much TAX during the year of assessment, or because of expenses that you may claim back from SARS such as medical and travel expenses.
- Long Term Loans: Whenever you apply for a long term loan, such as a mortgage, you’ll need a TAX clearance certificate which you can get only all your returns are up to date, and filled appropriately.
- Retirement Funds: Since you need to be TAX compliant in order to receive money from retirement funds, it is a good thing to make sure your returns are up to date.
- Complete Record: Aside from being a good citizen, you may never know when SARS can do a check on you, and having an incomplete record may make you look suspicious and result in an audit.
What are supporting documents, and why do I need them?
Supporting documents are basically proof of everything you declare on your TAX return – any income, expenses and claims.
Even though SARS may not request the supporting documents immediately, you should keep them save for at least five years.
Where can you submit your TAX return?
- File it online via SARS Efiling website
- File it inside a SARS branch
- Let a TAX Practitioner do it
Should you make use of a TAX Practitioner?
Circumstances are different for each person, and a TAX return can be fairly simple, or very complicated depending on those circumstances. If you are confident that you know exactly how to file your TAX return, you can go right ahead and do it yourself. Just remember that worthy TAX Practitioners are always on top of new rules and changes in regulations that puts them in a position to help you avoid penalties, maximise your potential refund and assist you when dealing with audits and queries from SARS.
However, when choosing a TAX Practitioner, always make sure that he or she is a member of a recognised controlling body, such as SAIT or SAIPA for example.
Should you require any further information or assistance, please contact us for a free initial consultation.