Not sure if you’re a provisional taxpayer or not? There are a few aspects that make you a provisional taxpayer, including owning your own sole proprietor or freelance business – use our handy tool to see if you are one or not. If you’re a provisional taxpayer and have not registered as a provisional taxpayer, then you need to do so asap! If you’re registered on eFiling you can amend your tax type online:
This means that you don’t need to register for provisional tax and you’ll submit only an ITR12 return each year. Let TaxTim help you complete your tax return correctly and get your maximum allowable tax refund. Sorted.
If you're an employee, you probably negotiated your salary based on the gross amount (or cost to company) - which is the whole amount paid by your employer. Since income tax is deducted from this gross amount, often taxpayers don't know the net amount that will clear into their bank account each month. And this is important, for so many reasons.
SARS charges an employee tax monthly and employers must pay that amount over to SARS every month. This tax is called PAYE (Pay As You Earn) and it's calculated based on your taxable income. Your employer keeps the PAYE from your salary and pays it over to SARS on your behalf.
This is different to your gross income and is calculated as follows:
Taxable income = Annual gross salary - Pension / Provident / RAF (limited to 27.5% of salary, limited to R350k) - 20% of travel allowance
Sometimes your gross salary includes a pension fund contribution (for when you retire) and a travel allowance too (to help you pay for work-related transport). SARS does allow you to deduct your retirement fund contributions up to a certain limit from your gross salary. Only 80% of your travel allowance is included in taxable income, so we therefore also subtract 20% to calculate this value.
Your tax rate
Once you know what your taxable income is, you need to look at the SARS tax tables to find the income tax bracket that you fall into (your tax rate). People have different tax rates based on how much they earn: higher earners fall into higher income tax brackets than lower income earners, meaning that they pay a larger portion of their salary or income over to SARS.
Try the above calculation on your own and then look at the SARS website for their tax tables, or just use our easy income tax calculator which does all the difficult calculations for you.
Want to see how much money is actually arriving in your bank account each month? Try work it out today so you can budget better and get a handle on your financial affairs.
For most people who earn a salary from their employer, they have already paid their taxes in the form of Pay-As-You-Earn (PAYE). Although salaried employees are limited by tax law in terms of what they can deduct from their income, there are a few things that can be claimed back, reducing how much tax you owe to SARS. These allowable tax deductions are:
SARS has announced that if you earn less than R350,000 a year, and fulfil a series of complicated criteria, you may not have to file a tax return. However, it’s extremely important to understand this properly, because if you don't, you may be fined heavily in future. Here are five reasons why you should not skip filing your tax return this season:
Have a question? Check out our FAQs, as this may be the simplest and quickest way to resolve your query.
What is an IRP5? An IRP5 is the employee's tax certificate that is issued to him/her at the end of each tax year, detailing all employer/employee related incomes, deductions, and related taxes. The employee uses it specifically to complete his/her income tax return for a specific year.
Do I need an IRP5? Yes, you do if you were employed during the tax year. It is your employer’s responsibility to provide you with an IRP5 each year.
What if I’m no longer employed by the company I need my IRP5 from? Even if you no longer work for a previous company, they should still give you an IRP5 in June of the year you’re submitting the tax return for. If they haven’t given you one, you need to contact them to get it.
SARS needs an IRP5 which I never received - what must I do? If SARS asks for this (but you really don’t have it), go to the police station and swear an affidavit stating that you’re unable to retrieve your IRP5. Take this with you into a SARS office, where they will submit your return for you. You can also upload this onto eFiling.
Can I submit a return without an IRP5? Yes you can, however SARS might request that you send them your IRP5 if they decide to review your tax return.
Can I find my IRP5 form online? You can check on your SARS eFiling profile to see if your IRP5 has been submitted to SARS (this should have been done by your employer). Simply request your Tax Return and it will hopefully already be populated with your IRP5 details.
Is there an expiry date of IRP5? Your IRP5 can never expire, as it’s just a summary of all your payslips for the working year.
Is the number on my IRP5 a valid tax number or should I register? There may be a number on your IRP5 beginning with a 0,1,2, or 3 - that is your ten-digit reference number.
When is the right time to submit my IRP5? You should file your return as soon as possible if you’re due a refund. Tax season runs between July and October each year for the tax year which ends the previous February.
What is the maximum number of IRP5's that can be submitted through eFiling per year? On the eFiling wizard page (the first page), enter the number of IRP5s that you have in the number entry box. Then when you click the button to generate your tax return form, there will be multiple empty IRP5 documents waiting for you to fill in. Don't worry about adding up amounts or trying to combine multiple numbers into one – you need to include each IRP5 separately on your single ITR12 tax return for the year, so just do one at a time.
My IRP5 is wrong, how do I fix it? You need to contact the company you worked for and ask them to reissue the correct document, both to you and SARS. If it includes incorrect banking details, there’s no need for you to fix these on the IRP5, as you can amend them yourself on your tax return.
What’s the difference between an IRP5 and an ITR12? An IRP5 is a summary of all your payslips for the year, while an ITR12 is the Income Tax Return for all individuals (including provisional taxpayers) for a particular tax year.
Is this PAYE number the same as my Tax Reference Number? No, the PAYE number is your employer number and it begins with a 7. This is not the same as your personal tax number which starts with 0, 1, 2 or 3.
What does a tax directive number mean on my IRP5? A tax directive number is an instruction that SARS has to withhold or not deduct tax on the earnings you received. This is located on the bottom right hand side of the IRP5 usually and often begins with the number 2.
Do I need to put the medical credits on my IRP5 under the medical section of a tax return? No you don’t, this is different information and the medical section only asks for the number of members, the name of the medical aid and your contributions. The IRP5 contains the tax benefit in the form of a medical credit. There is no need to duplicate information.