I just got an email from SARS that said unless I earn over R350 000 a year I don't have to submit a tax return this year.
Is this correct? Wasn't the income threshold a LOT lower last year, like R70,000? My income certainly doesn't exceed R350000 per year, but I still want to declare my expenses like medical and get my refund. Must I still submit below the threshold?
SARS released a statement saying that anyone who earns income less than R350 000 and has NO deductions or any other income need not submit a tax return.
However, if you have deductions like Medical Expenses, OR if you changed jobs, OR worked for less than 12 months this year then there is a GOOD chance that you are due a tax refund.
We advise you to always be tax compliant as this is important when applying for a bond, home loan, other finance or taking money outside of SA, all of which require a Tax Clearance Certificate.
Costanzasays: 3 July 2014 at 10:01
SO you mean to say that if I earned income, and it was below R350 000, and I DIDN'T file a tax return then I would miss out on the tax refund that is due to me, had I filed? So they keep my tax refund essentially? Is this how they are making their revenue targets this year??
AND by not filing I would be ineligible for a bond on a house, or car loan?
TaxTimsays: 3 July 2014 at 10:04
Only if you are due a refund would you be entitled to one and there are various deductions / scenarios that do / do not result a refund. The only way to know for sure is to file your tax return.
For example, if you worked 10 months of a year, but your PAYE was calculated as if you worked a full year (often the case because nobody knew you were leaving) then you would be due a refund, and if you didn't file then Yes that money would not be returned to you.
By not being tax compliant you would not be issued with a tax clearance certificate from SARS which means when you apply for things like bonds or taking money overseas you would not be successful.
Costanzasays: 3 July 2014 at 10:15
Sjoe! All I can say is THANK GOD FOR TAXTIM!
I will be filing my return regardless of what they say - I want my refund.