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Medical: 10 most popular posts


5 Reasons you Still Need to File your Tax Return in 2017

Posted 30 June 2017

5 Reasons you Still Need to File your Tax Return in 2017

SARS has recently communicated that if you earn less than R350,000 in a year, and fulfil a series of complicated criteria, you may not have to file a tax return in 2017.

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 not to skip filing your tax return this season:

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2017/2018 Budget - The rich are going to pay more, but what does that mean for the rest of us?

Posted 22 February 2017

2017/2018 Budget - The rich are going to pay more, but what does that mean for the rest of us?


Personal Tax Rates (rates below)

Individuals across the country, those qualifying above the new tax threshold of R75 750 (previously R75 000) will be paying increased taxes of R16.5bn (previously R5.65bn in actual tax increase) for the next tax year, most of this will be for high income earners, however. Taxpayers generally across the board will be earning the tiniest bit more money each year as their tax brackets...

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Tax Breaks For All

Posted 16 February 2017

Tax Breaks For All

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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Food for Thought on Subsistence Allowances

Posted 13 June 2016

You’ve been up since 4am in order to catch yet another red-eye flight for a 9am business meeting - 1,400km away - and you’re already onto your third coffee by the time you board the plane. While you’re fairly accustomed to the frequent business trips requiring out of town travel, you’re still somewhat confused by the tax implications of the subsistenc...

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Who's (Legally) Allowed to File Your Tax Return?

Posted 6 June 2016

Tax isn’t the easiest of subjects to navigate. Besides the long list of legalese to master, there’s the fact that tax legislation evolves year on year. What was applicable on your tax return 2 or 3 years ago, isn’t necessarily valid on your next, and what’s right this year, may change next season.

It’s unsurprising then, that when faced with the daunting task of filing their annual tax return, many people turn to a friend, colleague or trusted broker to help them out, in the hope that they’re more proficient...

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What Medical Expenses Can You Claim Back from Tax

Posted 17 March 2016

Medical expenses are nothing to sneeze at. Private medical treatment is increasingly pushing the limits of medical aid scheme benefits and our wallets. It's an outlay few can avoid. Luckily, certain medical expenses come with a bit of tax relief in the way of tax credits.

A tax credit is a non-refundable rebate. This means that a portion of your qualifying expenses, in this case medical related spend, is converted to a tax credit, which is deducted from your overall tax liability (the amount of tax you have to pay SARS)...

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2016 Budget Speech: Welcome Back, Minister! You Couldn't Have Returned Just for the Free Lunch?

Posted 25 February 2016

The 24th of February 2016 was supposed to be a watershed moment for the Economy of South Africa. The old-new Minister of Finance, Pravin Gordhan, was to deliver his budget for the 2016/2017 tax year and save South Africa from a financial pit-fall in the form of an International Ratings Agency downgrade. The jury is still out on whether or not this is possible. Immediately after the budget was revealed the Rand tumbled 2%, which doesn’t bode well for market sentiment. However, ...

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Where can I get my Medical Scheme Tax Certificate?

Posted 18 June 2015

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!).

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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Thank you Minister - we expected worse! 2015 Budget

Posted 25 February 2015

New Finance Minister Nene delivers his first budget with some “better than expected” tax increases. The fight against corruption was highlighted with the minster announcing a series of reforms and procedures to be introduced both to curb corruption and make doing business with the state easier. The minister announced that R25bn would be saved in expenditure over the next two years, but R16.8bn is to be raised this year via tax increases and a remarkably large rise in the fuel and road accident fund levies. To be honest, we expected greater tax increases from the minister, thankfully he spared us some of the pain! ...

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How to calculate totals under source codes 3696, 3697 and 3698

Posted 29 July 2014

If you tried to submit your tax return and got an error relating to 3696, 3697 or 3698 then you might have simply left an amount out!
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.

A common example would be:

Salary R240,000 - source code 3601 ...

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2014 Budget - A move to economic transformation

Posted 26 February 2014

In delivering what could possibly be his last annual budget and perhaps in an election year a very pragmatic one, Minister Pravin Gordhan painted a rather positive picture for the future of South Africa, whilst at the same time warning of the impact the global economy is having on the South African economy. He too, had a “good story” to tell of how well managed the economy is and how we have survived the economic downturn of the last half decade. The minister, like his predecessors b...

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Medical Aid Tax 2014 - How SARS' new changes affect YOU!

Posted 24 February 2014

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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Garnishee orders explained: How SARS can deduct penalties directly from your pay cheque and how to stop it

Posted 14 November 2013

The last days of the month are often the most exciting for employees as they look forward to spending their monthly pay cheques. Unfortunately for many taxpayers anticipation quickly turns to grief when the money they receive in their bank account is suddenly less than they had expected. Stress and anxiety then result in light of impending debit orders and monthly expenses that need to be paid.

Apart from the ordinary deductions that your employer takes off your salary each month - expenses for your benefit such as medical aid or a retirement / pension plan - there is another deduction that can take place unexpectedly: a garnishee order...

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The Tax Refund Myth: Why aren't I getting anything back?

Posted 30 July 2013

Every year there arises a misconception amongst taxpayers that a tax refund or 'tax rebate', as it is incorrectly known to many, is due to them by default. The thinking goes that because tax was paid dutifully each month, it will be returned to the taxpayer as if it were some sort of forced savings account. The unfortunate truth is that tax paid is just that - an amount paid over to SARS that represents your tax paid - money to be spent on running the country. Money you won't be getting back in your account. ...

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How does Pay-As-You-Earn (PAYE) work?

Posted 30 July 2013

You may have seen the word PAYE on your IRP5 payslip or heard it mentioned by your employer, but have no idea of its meaning. All it really means is that you are paying the tax you owe to SARS on a monthly basis instead of all at once at the end of the tax year, hence PAYE means 'Paye As You Earn'. This is a good thing as it saves the taxpayer from having to pay between 18% and 40% of their earnings (the taxable amount) to SARS in cash once a year as a lump sum!

Employers are required to withhold these taxes each month and pay them over to SARS on the taxpayer's behalf...

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Why don't I get a tax deduction for Out of Pocket Medical Expenses? Source code 4008 shows R0

Posted 3 July 2013

Tax season always throws up some interesting and confusing calculations, but for the 2013 tax year it would seem the most confusing of all is how medical aid contributions and Out of Pocket medical expenses are treated.

New to 2013 tax season is the Medical Aid Tax Credit. Now instead of your contributions to medical aid being deducted from your income earned in order to work out your tax, there is instead a tax credit against the actual tax paid...

Read more →

The effect of the 2013/14 annual budget speech on the average South African taxpayer

Posted 28 February 2013

It was with great enthusiasm that we at TaxTim awaited delivery by the Minister of Finance of his annual budget speech this afternoon, especially after some of the shocks experienced by taxpayers and tax professionals last year. Surprisingly he delivered a very mild budget in terms of individuals with the Minister stating, “No tax rises.” The main focus areas relating to tax in this budget speech were on compliance, tax evasion and big companies seeking to shift their income around the world in order to avoid higher taxes...

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Why employers should help their employees with tax

Posted 25 February 2013

Individual taxpayers have traditionally been told that when it comes to tax returns, they're on their own with regard to submitting each year and their employer does not need to get involved. Despite the employer making payment of PAYE (the majority of their tax liability) on their behalf, after handing over their IRP5 detailing this payment they resume business as usual and the employee is left to navigate the ever-challenging tax system on their own, without any assistance. Fortunately this attitude is changing as more companies recognise the benefits of helping staff with their tax matters. ...

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Why do I need to submit an Income Tax Return if my employer pays my Tax?

Posted 6 September 2012

A question often asked is, “If my boss pays over my tax then why do I have to do anything?”

If you earn below R160 000 per year, SARS does not require that you complete and submit an ITR12 tax return. HOWEVER SARS will charge you an admin penalty for not submitting a return AND if you don't mention all your deductions you can't maximise your potential refund. So rather submit a return every year and stay tax compliant. With TaxTim it's easy. Remember as well that SARS doesn't know everything about you so you need to tell them to maximise your potential refund! ...

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SARS is asking for more documents. Are they auditing me?

Posted 13 August 2012

For most people upon submission of their year-end income tax return, either nothing much will happen or a refund will be due, this being paid back within a matter of days. However in a small number of cases SARS requires extra documentation or proof to be submitted so that they can verify that everything you submitted in your tax return is correct. Don’t be afraid, although many people consider this an “audit” it isn’t nearly as frightening as that and doesn't mean you have done anything wrong. A true audit would be SARS requesting years of past documentation and opening up for examination all your tax affairs from previous years. ...

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I'm retired at 65 years and older - what income tax benefits do I qualify for in retirement?

Posted 23 July 2012

It would seem that SARS often prioritises younger taxpayers who are still working and receive a constant flow of income. However for many older South African taxpayers over the age of 65 who have retired or are still working, there are actually quite a few benefits to enjoy.

Firstly at 65 the tax threshold above which you would even begin paying tax is higher, at R99 056 per year (in 2012 it was R93 150). What's more, those taxpayers who are older than 75 years of age get an even bigger break at R110 889 per year (in 2012 it was R104 261)...

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How to become tax compliant in South Africa

Posted 16 May 2012


Have you registered as a taxpayer?

Did you know that it is your duty by law to register with SARS (the
South African Revenue Service) as a taxpayer if you earn above R63 556
per tax year? By registering and completing your tax returns regularly
each year, you will become a tax compliant, proud South African. You
can register for a tax number with SARS in person (at their offices in
all major centres), or send the required documents by post or email. ...

Read more →

Do I earn enough to have to pay tax?

Posted 26 March 2012

Why must I pay tax, I don’t earn enough! Will I get a penalty if I don’t disclose all my income to SARS? These questions are common and usually include other sources of income such as interest from a bank account. If these earnings don't extend above the tax threshold then why disclose them and pay tax? Unfortunately while you may not have to pay tax on the income, you will certainly have to disclose it to SARS. Let’s assume you earn a salary of R200 000 a year and hav...

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South African budget 2012/2013 - "Tax by stealth"

Posted 23 February 2012

Eagerly anticipating the budget this year and forever the optimist, Finance Minister Pravin Gordhan started off well: R9.5bn of individual tax savings and revenue collection up by R10bn from the latest estimates. However, for the individual taxpayer, things went slightly downhill from there... Let’s unpack this a bit.

Not all Doom and Gloom

Ok, ok so maybe I have been too harsh as only certain individuals (the richer ones) will actually be subject to greater tax, the lower end income earners will benefit quite a bit from the new tax changes...

Read more →

New tax credit to replace medical aid deductions in post 2012 Tax Year

Posted 21 February 2012

The 2012 tax year has almost come and gone, and being annual budget time, anxious taxpayers are unsure what to expect. Is there any room to be taxed further? All will be revealed on Wednesday the 22nd, but in the meantime let's focus on the new medical aid tax regime.

Gone are the days of paying your spouse's medical aid and claiming the deduction just because you are in a higher tax bracket. From the 2013 tax year onwards that deduction is no longer allowed. Instead it will be replaced with a tax credit per dependent. "What is the difference?" I hear the average taxpayer ask, and "How does it affect me?" ...

Read more →
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Blog Categories


Need help
submitting your
Tax returns?


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started