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SARS has done a ‘simulated calculation’ for me " what does this mean?

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 are identifying taxpayers who meet these criteria (i.e. fall within the threshold to not file a return) and are offering them a ‘simulated tax calculation’ which they produce from 3rd party data sources e.g. IRP5, medical aid tax certificates, etc. If the taxpayers accept this calculation, then (according to SARS) they do not need to file a return and a notice of assessment will be automatically issued. The results of the simulated calculation would of course, be zero, meaning the taxpayer has no refund due and also owes nothing to SARS.

If the taxpayer has any other income or deductions to declare which does not appear on the simulated outcome, then he/she can choose to not go this route, but rather request a return and file as normal.

If you are part of the group identified by SARS, you may receive an SMS from them with the following wording:

Dear Taxpayer, ******3140, SARS has done a simulated calculation for you based on information that we have received from your employer and other sources. The outcome of the calculation is -R0.18. According to us you do not have to file a return. Should you need to file, use the SARS MobiApp. Regards SARS

SARS will use the information they have available about you to determine if you qualify for the simulated assessment.  There is a chance however, they may not have all the latest information (e.g. maybe your IRP5 was re-issued last minute due to a date or source code error) and you could miss out on a refund by not filing a return. For example, if you have worked for less than a year or have contributed to a medical aid or retirement annuity, there is a chance you would be due a refund from SARS. Read here, to find out even more reasons why filing a tax return every year is so important.

At TaxTim we always advise you to file your tax return every year so as to maintain an unbroken filing history with SARS.

Still unsure about filing? Click here to find out if you need to file.

If you have any questions about filing your return, please ask our TaxTim team of experts.

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