Tax returns: what you need to know

By Gavin Butchart, Financial Director and Tax Consultant

TaxMan-Art-John-Royle

The 2019 income tax filing season is in full swing and the South African Revenue services has also implemented their new look online eFiling system.

Taxpayers who use SARS eFiling service or the SARS MobiApp to file their income tax returns can do so from 1 July until 4 December 2019. Taxpayers who wish to use online filing for the first time may also register from 1 July.

Those who prefer to file their income tax return at a SARS branch will be able to do so from 1 August 2019 until 31 October 2019.

Provisional taxpayers have until 31 January 2020 to file via eFiling.

Taxpayers do not need to submit an income tax return if they meet all the following criteria:
• Their total employment income for the year before tax is not more than R500,000.
• They only receive employment income from one employer for the full tax year.
• They have no other form of income (e.g. car allowance, business income, rental income, taxable interest or income from another job).
• They don’t have any allowable tax-related deductions to claim (e.g. medical expenses, retirement annuity contributions and travel expenses).

SARS has been on a drive to step up its efforts for taxpayers to be compliant and to combat outstanding and late returns, SARS said that it will also crack down on taxpayers who do not declare rental income from properties.

It’s important to declare all relevant and correct information when submitting your annual income tax returns, as serious consequences may arise should you not declare all the information or incorrect information which could result in criminal charges and penalties and interest being levied.

The penalty amount that will be charged depends on a taxpayer’s taxable income and can range from R250 up to R16 000 a month for each month that the non-compliance continues.

If you are unsure of the new eFiling system you can always go into your nearest SARS office for assistance or obtain the assistance of a tax practitioner.

Have a question? To contact Gavin send email to gavinb@brenthurstwealth.co.za. For details about the comprehensive financial planning, investing, risk planning and tax advisory services of Brenthurst Wealth, view all details here: Brenthurst Wealth

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