What does a Completion Letter from SARS mean?
Posted 27 November 2018
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 7 working days (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.
An example of a...
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I submitted all my documents to SARS ' They've asked again. Why?
Posted 26 November 2018
We are seeing many cases where taxpayers submit their documents to SARS, wait 21 working days (sometimes longer) only to receive a second letter on eFiling which requests the exact same documents again.
The letter we are referring to here is the generic SARS document request which looks like the below:
The South African Revenue Service (SARS) thanks you for submitting the revised income tax return for the 2018 tax period.
The revised information still does not match the information in the possession of the SARS and/or the income tax return has been identified for verification in terms of the Tax Administration Act....
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Black Friday Survival Tips
Posted 22 November 2018
It's that time of the year again - Black Friday!
We'd like to assume that you've probably been inundated with nothing but sale specials in your inbox . While others have managed to plan ahead to ensure a pleasant shopping experience, other consumers will shop wildly and randomly during this highly anticipated sale bonanza. With so little time to spare we've put together 3 important things to remember this Black Friday:
1. Compare your options
Sometimes brand loyalism should be left at home...
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Where do I get my IT3(b) tax certificate from?
Posted 30 October 2018
When we finally decide to complete our tax return, the last thing we want is a delay in finding that last piece of missing information. In case your bank or investment fund hasn't sent you your IT3b tax certificate by mail or email earlier in the year, here are the fastest ways to download your tax certificate online in record time.
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I have received an Additional Assessment from SARS - what does this mean?
Posted 23 October 2018
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:
- Receive a request for additional documents; or
- Receive a Completion Letter; or,
- Receive an Additional Assessment
Additional Documents Request
If SARS still requires for documents from you, they will either send ...
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How to Change/Verify Your Bank Details at SARS
Posted 22 October 2018
SARS has recently issued a new guide with regards to updating your banking details with them. This was done in order to reduce the risk of refunds being paid into the wrong accounts and also to streamline the process, which has tended to be an onerous one in the past.
Change of bank details can be done:
- in person at a SARS branch (SARS still prefers this way)
- via eFiling (Go to Maintain Taxpayer Registered Particulars Menu) Note, you will still need t...
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FAQs on TaxTim
Posted 11 October 2018
We’ve put together a few FAQs which have come from many of our users. These questions vary from the filing process on TaxTim as well as the generic tax questions which can often be quite unclear. With the tax filing season deadline being just around the corner, we’d like to ensure you’ve got the correct information and tools to help you navigate your way around the processes. Knowing exactly what to do when it comes to your taxes during this final stretch. After all, according to SARS, filing a tax return is your responsibility and not your employers'....
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File by 31 October or face heavy fines and potential legal action!
Posted 11 October 2018
With the tax season shortened this year by 3 weeks, the deadline to file by 31 October is just around the corner. SARS announced that it will be clamping down on taxpayers who miss the deadline to submit their tax return. Besides stating that they will impose monthly fines for late tax returns, they have even gone so far as threatening criminal prosecution and time behind bars for unpaid tax debt, just as many of us have witnessed with the recent celebrity headlines.
Their ominous slogan “pay your taxes or pay the price” is still in use, with the hope to encourage taxpayers to file their returns on time...
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Do You Need to Ring-Fence Your Business or Rental Losses for Tax?
Posted 10 October 2018
When pursuing a business activity, trade or renting out a property, you’re no doubt doing so to make some money, but the reality for self-starters is that there’s a good chance it’s going to take some time for your venture to break even, which can often mean facing a loss.
Your additional income is of interest to SARS as it translates into more tax revenue for them, so how do you record your loss to them? And when, how and where is the loss applied from a tax perspective?
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Why is SARS asking me for outstanding tax returns?
Posted 9 October 2018
When did this happen?
Previously, assuming that SARS did not request any documents for verification and everything for the year was accepted, refunds due were typically paid out quite quickly to taxpayers within 1-2 days.
From 2015, SARS has implemented a new requirement that ALL tax returns, since the first year a taxpayer registered for a tax reference number, must be submitted before any refund is paid out.
...
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After all my documents submissions to SARS, they disallowed my expenses, why?
Posted 4 October 2018
We are starting to see some common trends whereby taxpayers’ expenses are disallowed because the documents submitted are falling short of SARS’s requirements. To avoid unnecessary frustration and time wasted in raising disputes, read on to see if any of these areas apply to you.
Travel deduction
In prior years, the submission of a logbook detailing your business mileage used to be sufficient to justify your travel claim. This year, SARS is re...
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Why must I submit an IRP5/IT3a if I never received any lump sum cash?
Posted 21 September 2018
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.
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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Tax Breaks For All
Posted 31 July 2018
What?
1.Rebates
Who?
Everybody
Primary, secondary, and tertiary rebates – depending on your age. A rebate is a set amount that SARS whacks off your total tax liability and basically represents the amount excluded by the minimum threshold to pay tax.
Primary rebate is for those under 65 years of age (on the last day of the tax year), the secondary rebate applies to those between 65 and 75 years old, and the tertiary rebate is added for those over 75 years old...
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Why have I received a smaller tax refund from SARS this year?
Posted 24 July 2018
We receive many queries from confused taxpayers who are disappointed to see their tax refunds are smaller than the refund received last year. Often, on the surface, their income and expense situation appears unchanged, so how can this be?
If you are one of these unhappy taxpayers, read on to see some common reasons why your tax refund could be less than last year.
Carried forward retirement contributions
This one is not obvious at all and confuses many taxpayers...
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Medical Aid Tax! How SARS' new changes affect YOU!
Posted 8 July 2018
In 2012 SARS began making changes to how medical expenses were treated for tax purposes. The system at that time created a higher benefit for deducted medical expenses if you earned a high income (bad news for low income earners) and the changes since then have sought to make medical deductions more equal across various income levels.
Basic summary of how SARS calculates your tax
Income Earned
Less: Expenses / Deductions
= Taxable Income
x SARS tax rate ...
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Get your digital tax health score to help you pay less tax
Posted 3 July 2018
TaxTim, which helps you to complete and file your tax returns online with the help of a digital tax expert called Tim, now offers a personalised tax health score report free which could help users pay less tax.
The score is the result of an in depth automated analysis of an individual’s tax return. It makes recommendations on how to improve tax health for maximum tax efficiency.
“For the first time, taxpayers will have a report card reflecting where they can improve their tax affairs and maximise efficiency...
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What to expect in 2018 after submitting your tax return to SARS
Posted 1 July 2018
As soon as
tax season opens in July, many taxpayers rush to submit their
ITR12 tax returns as early as possible, eagerly hoping for a nice refund. After the rush, when nothing happens, they often ask us what is happening to their refund? In most cases where an income tax refund is due to a taxpayer, SARS pays it out within one or two days...
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Individual Tax Rate Tables
Posted 18 June 2018
RATES OF TAX FOR INDIVIDUALS
2019 tax year (1 March 2018 - 28 February 2019) - see changes from last year
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How to calculate totals under source codes 3696 and 3699 for 2018
Posted 13 June 2018
Perhaps you just tried to submit your tax return and you instantly got an error relating to 3696 and 3699. As frustrating as it could be, don’t worry the error can be fixed. Maybe, you might have just simply left an amount out. Let’s have a look at what you should do, in order to crack these codes correctly – in that way making filing much more easier for you.
You’ll need to check your
IRP5 to make sure you answered TaxTim's questions for these amounts correctly...
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How to calculate totals under source codes 3696 and 3699 for 2017
Posted 12 June 2018
Perhaps you just tried to submit your tax return and you instantly got an error relating to 3696 and 3699. As frustrating as it could be, don’t worry the error can be fixed. Maybe, you might have just simply left an amount out. Let’s have a look at what you should do, in order to crack these codes correctly – in that way making filing much more easier for you.
You’ll need to check your
IRP5 to make sure you answered TaxTim's questions for these amounts correctly. Your IRP5 can show one or more amounts with source codes describing the income you received from your employer that year. ...
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Medical Aid contributions paid on behalf of a dependent
Posted 4 June 2018
Date
Taxpayer's Full Name
Address
To Whom It May Concern,
Subject: medical aid contributions paid on behalf of a dependant
This letter serves to confirm that I, ________________________(taxpayer's full name), __________________________(ID number) am contributing to a medical aid on behalf of _______________________________(name of dependant),___________________(ID number). He/she is/is not financially dependent on me a...
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Foreign Employment Exemption Letter
Posted 4 June 2018
COMPANY LETTERHEAD
Date
Employee's Full Name
Address
To Whom It May Concern,
Subject: Confirmation of foreign employment
This letter serves to confirm that____________________________(Name of employee) _______________________(ID number) is employed by __________________________(company name) in the capacity of__________________________(position).
He/she is contracted to work overseas in _______________ (country) from ______________dd/mm/yy to ________________dd/mm/yy. ...
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Use of personal devices for work letter
Posted 4 June 2018
COMPANY LETTERHEAD
Date
Employee's Full Name
Address
To Whom It May Concern,
Subject: Permission to use personal items for work purposes
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...
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Home Office Letter
Posted 4 June 2018
COMPANY LETTERHEAD
Date
Employee's Full Name
Address
To Whom It May Concern,
Subject: Permission to work from home
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 home in order to fulfil his/her duties to the company. ...
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Letters you may need to provide to SARS
Posted 4 June 2018
After submission of your tax return, SARS may request certain documents from you.
These may include a letter if you claimed any of the following deductions:
-
Home Office-
Wear and Tear on personal devices used for work e.g laptop or cellphone.
-
Foreign Employment Income Exemption...
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