Written by Elani
Updated 15 November 2024
South African expatriates who ignore their tax obligations will soon find themselves facing the wrath of the taxman in the upcoming tax season.
SARS has urged taxpayers including expats (South Africans residing outside the country) to urgently review their tax compliance status or stand the risk of facing major penalties or even jail time.
Originally, individuals were taxed according to a source-based tax system but from 1 March 2001 it has changed so that individuals will be ...
Written by Nicci
Updated 11 November 2024
We often receive questions from taxpayers as to how to structure their salary most efficiently for tax purposes. Unfortunately, the reality is that the days of employees gaining a tax advantage South Africa rolled out the Two-Pot Retirement System on 1 September, 2024. It applies to any South African who has a pension fund, provident fund or retirement annuity fund. The Two-Pot Retirement System allows you to access a limited portion of your retirement savings before retirement for emergencies, while the majority of your savings remains "preserved". This means the larger part of your savings must stay invested until you reach retirement. The goal of South Africa's ne... In these uncertain economic times, we all want to stretch our budgets a little further. With a few simple financial habits, anyone can save some extra cash each month. So, if you're ready to start saving but not sure where to begin, here are ten handy tips to get you started: Keep an eye on where your money goes, and you'll naturally start spending less. Keep a record of your daily expenses and distinguish between needs and wants. Need... Managing debt can be daunting, but it doesn't have to define or control your life. In South Africa, many individuals face the complex task of effectively handling their finances and debts. Keep reading, and we’ll equip you with practical strategies and valuable insights to take control of your debt and financial future. Let's delve into how you can regain control of your debt and finances and pave the way for a brighter future. Understanding Debt Manageme... At TaxTim, your security is a top priority. We've dedicated a section of our website to keep you informed about the latest scams and phishing attempts we come across. We also encourage you to share any suspicious emails you encounter. To report or learn more about phishing, you can email phishing@sars.gov.za or call the Fraud and Anti-Corruption Hotline at 0800 00 2870. For a list of all current SARS surveys, emails, and SMS communications, Taxpayers this year are facing a new gripe with SARS when it comes to receiving those well-earned refunds. The current two scenarios are: In both these cases a refund should be paid out within 72 hours (if the taxpayer is due one), however thousands of taxpayers still have not been paid their refund. Here’s why!... In 2024, we have noticed that SARS is withholding refunds from taxpayers with outstanding tax returns, sometimes dating back many years. In some cases, SARS is requesting unfiled returns from as far back as 10-15 years ago, going back to when the taxpayer first registered for a tax number. Block on eFiling submissions older than 5 years This year, SARS introduced a change to eFiling that has frustrated many taxpayers. Returns older than five years are now blocked from being submitted on individual profiles, prompting a message that these must be filed at a branch. Don't worry - TaxTim can help... Has SARS asked you for documents that you can't produce, such as an old IRP5 from a prior year that your employer doesn't have, or that simply doesn't exist? After you have submitted your supporting documents to SARS, they have 21 working days to review them, assuming all sufficient documents have been received. Once their review is complete, you will either: Additional Documents Request If SARS still requires for documents from you, they will either send ... Completion Letter You will receive a Completion Letter if all goes well and SARS is happy with your documents. This means that SARS is not adjusting your Original Assessment and if you have a refund due, it should be paid out in 72 hours (provided you have no tax debt due or outstanding tax returns from prior years). Similarly, if you owe tax to SARS per your Original Assessment, the amount you owe will remain unchanged. This is a common area of concern for many taxpayers who don’t know why they are asked to submit documents to SARS after they file their tax return. After submission of your tax return, when you receive your tax assessment (ITA34) from SARS, you need to scan down to the block “Compliance Information” to see if SARS requires anything further from you. You will see “Selected for audit or verification” with a Y or N (Yes or No) next to it. If you have a N, you can breathe a sigh of relief and consider yourself fortunate that SARS probably doesn’t require anything further from you for this tax year. If you have a Y in the block (and we are seeing this more and more frequently) it means that SARS wants to see evidence or back up which supports the amounts you entered on your tax return.... SARS 2024 tax season dates: 15 July 2024 to 21 October 2024: individual (non-provisional) taxpayers 15 July 2024 to 20 January 2025: provisional taxpayers If you earn less than R500 000 in a year, and fulfill a series of complicated criteria, you may not have to file a tax return in 2024. When it comes to tax jargon, most people prefer to bury their heads in the sand instead of trying to understand all the confusing terms that tax practitioners use. Taxpayers just want to do their tax quickly and easily, and if they’re due - receive some money back from SARS. A lot of confusion surrounds the process, but by understanding three simple terms you can make tax season a little bit easier. These tips are part of TaxTim's personalised recommendation tool called the Tax Health Score. Like in previous years, there have always been opening tax season niggles and 2024 has been no different. Patience is a virtue, so the adage goes. In order to complete the Medical section of your annual tax return, you will need a tax certificate from your medical scheme (if you contributed to a medical scheme that is!). We receive many questions from taxpayers who are confused as to why they receive an IRP5/IT3a for retirement fund withdrawals or transfers and how to report this (if at all) in their tax return. If this applies to you, read on and let us clarify the issue for you. COMPANY LETTERHEAD To Whom It May Concern, This letter serves to confirm that _______________________________(Name of employee), ___________________________(ID number) who is employed by our firm ___________________( company name) in the capacity of__________________________(Position) has permission to use the following personal items for work purposes: Item: 1... You may be employed by someone, but for one reason or another- you don't receive an IRP5 and no amount of begging or pleading We’re aware that sometimes taxpayers may not understand all of the deductions which appear on the tax return. And because of this, expenses that could have been deducted get missed. To help make things easier for you, we’ve explained some of these less understood tax deductions which may be overlooked by taxpayers. They all appear in the Other Deductions section of the ITR12. COMPANY LETTERHEAD To Whom It May Concern, This letter serves to confirm that _______________________________ (Name of employee), _____________________ (ID number) who is employed by our firm ___________________ (Company name) in the capacity of __________________________ (Position) has permission to work from h... Filing a tax return for the first time can be a daunting task. To get you started, we’ve gone back to the basics SARS have recently become a lot stricter about levying administrative penalties. These are penalties for missing the deadline to submit your tax return. You can read about these recent changes in the law here. If you have outstanding/un-filed tax returns from prior years, chances are high that SARS will have slapped on administrative penalties. You may have recentl...
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Two-Pot Retirement System and its Tax Effects
Written by Ursula
Posted 1 October 2024
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How to start saving money
Written by Evan
Updated 11 September 2024
1) Track Your Spending
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Getting your debt under control
Written by Evan
Updated 11 September 2024
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Latest SARS Scams, Phishing & Fake site alerts
Written by Patrick
Updated 12 August 2024
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SARS is not paying my refund, they want my old returns!
Written by Marc
Updated 4 August 2024
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Why is SARS asking me for outstanding tax returns?
Written by Evan
Updated 4 August 2024
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Swear an affidavit for SARS
Written by Evan
Updated 1 August 2024
To prove to SARS that you cannot produce the document they want, you will need to produce what is called a sworn affidavit.
This is basically a letter that you must write, that you then take to your nearest police station to get signed and stamped.
Items to include:
1. Your name, ID number and contact details...
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I have received an Additional Assessment from SARS - what does this mean?
Written by Nicci
Updated 30 July 2024
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What does a Completion Letter from SARS mean?
Written by Marc
Updated 30 July 2024
An example of a Compl...
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I've never been audited before. Why now?
Written by Nicci
Updated 30 July 2024
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What supporting documents do I need to submit to SARS?
Written by Nicci
Updated 30 July 2024
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5 Reasons you Still Need to File your Tax Return
Written by Evan
Updated 20 July 2024
However, we advise you to take GREAT CARE here, and understand your duties properly, because if you don't, you may suffer for it later on.
Here are the top 5 reasons why you should not skip filing your tax return this season:
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The 3 R's: Returns, Rebates and Refunds Explained
Written by Marc
Updated 16 July 2024
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Ten Tips to Pay Less Tax
Written by Nicci
Updated 11 July 2024
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How long do I have to wait for my tax refund?
Written by Vee
Updated 2 July 2024
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Where can I get my Medical Scheme Tax Certificate?
Written by Evan
Updated 27 June 2024
This certificate details exactly how much was paid to the medical aid for yourself and your dependents over the course of the tax year (1 March to end Feb). It also details how much money you paid for other medical expenses, such as medicines and doctors expenses, which you claimed for, but your medical aid did NOT cover...
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Why must I submit an IRP5/IT3a if I never received any lump sum cash?
Written by Nicci
Updated 27 June 2024
IRP5/IT3a for retirement fund withdrawal, resignation or transfer
If you withdraw money or retire from your retirement fund and receive a lumpsum, the fund will have to apply for a tax directive for you and should also issue you an IRP5/IT3a...
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Use of personal devices for work letter
Written by Nicci
Updated 27 June 2024
Date
Employee's Full Name
Address
Subject: Permission to use personal items for work purposes
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I work for someone, but did not receive an IRP5 - what should I do?
Written by Nicci
Updated 27 June 2024
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The Less Common Tax Deductions
Written by Nicci
Updated 27 June 2024
The s11(nA) and s11(nB)
If an employee is in breach of an agreement with their employer, they may be asked to pay back a benefit they received from them e.g bonus, maternity leave benefit, bursary, sign on bonus etc. ...
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Home Office Letter
Written by Nicci
Updated 27 June 2024
Date
Employee's Full Name
Address
Subject: Permission to work from home
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FAQS: SARS eFiling
Written by Nicci
Updated 18 June 2024
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I have received a SARS admin penalty - what do I do now?
Written by Nicci
Updated 18 June 2024
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