A few years ago, SARS introduced a new section onto the Tax Return called “Unemployed Periods.” Taxpayers are required to complete this section by entering all the times within the tax year they were not working.
From the 25th October 2019, the printed Tax Clearance Certificate (TCC) will be substituted by the electronic Tax Compliance Status (TCS). This new digital version of the TCC allows for a more secure experience.
You have filed all your outstanding tax returns with SARS and when receiving your ITA34 assessment/ Statement of Account/ Penalty statement you notice that you owe SARS some tax. There are three main options available to you, if you want to make a payment to SARS.
You may have heard the recent announcement from SARS that certain taxpayers who earn less than R500 000 per year don’t need to submit a tax return. However, this only applies under very specific conditions so it is extremely important to understand these fully if you think you may be affected. You can read all about this rule here.
This year SARS are taking things one step further. They ...
TaxTim is seeing cases where taxpayers who had already submitted their documents in early July to SARS are, around ten days to two weeks later, receiving a further two letters from SARS requesting documents again. The one letter is the generic letter with the long list of documents, which was originally issued, while the second, contains a more specific request relating to the taxpayer’s tax return.
Usually SARS issued an immediate assessment, however sometimes they do need to do a further manual check on their side. Often the reason for this is one of the following:
They are missing an IRP5/IT3a due to you having transferred a lumpsum between any retirement funds. For example if you changed jobs during the year or withdrew your lumpsum from a Pension/Provident or Retirement Annuity Fund then you should have been issued an IRP5/IT3a;
Like in previous years, there have always been opening tax season niggles and 2019 has been no different. Patience is a virtue, so the adage goes. And when it comes to waiting for responses from most government departments, they can certainly put your skills of tolerance to the test. Our helpdesk is inundated with questions about how long SARS will take to react or respond to certain requests or submissions. The short answer is ‘typically, quite a while’. You can imagine that during their busy filing season there are hundreds of thousands of documents being processed and not all administration can be automated...
TaxTim and SARS use all the financial information you provide to work out the most accurate estimate of your potential refund (or tax liability) for the current tax season. However, there may be some information we don’t have access to, or information from prior years we don’t know about, that won’t be included in the estimate of your tax refund or tax liability.
Just like the SARS eFiling tax calculator, TaxTim doesn’t take into account provisional tax payments, unpaid penalties, carry-over amounts from previous years and assessed losses...
SARS has just announced that 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 for 2019. Previously, SARS had communicated that if you earn less than R350 000 in a year you may not have to file a tax return.
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:
Tax season always throws up some interesting and confusing calculations, but for many, the most confusing of all is how medical aid contributions and Out of Pocket medical expenses are treated.
Effective March 2012, the Medical Aid Tax Credit was introduced. Prior to this date, your contributions to medical aid were deducted from your income earned in order to work out your tax, much like other tax deductible expenses...
We receive many questions to our Helpdesk from taxpayers who are faced with the following scenario:
They work for two employers during the year, perhaps even at the same time and earn income from both. Each employer deducts employee’s tax (PAYE) from the taxpayer’s salary every month and issue them with an IRP5 after year end.
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.
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....
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 ...
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...
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...
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.
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...
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...
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...
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...