|Year of assessment ending February
|Younger than 65||R 91 250||R 87 300||R 83 100|
|Older than 65 but younger than 75||R 141 250||R 135 150||R 128 650|
|Older than 75||R 157 900||R 151 100||R 143 850|
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 decision tree 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!
Refer to our provisional tax guide to learn more about provisional taxes (and don't worry if it sounds overwhelming, TaxTim will ask you all the right questions, so that you complete your tax return correctly).
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 R 350 000) - 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 R 500 000 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:
You miss out on your refund. Why let SARS hold on to your money if you’re owed a refund? If you’ve overpaid on your taxes, this money belongs to you. However, you can only be paid a refund if you file a return! Something as simple as claiming medical expenses or working two jobs can trigger a tax refund, depending on your financial situation. Have a question? Try our refund calculator.
You may not be able to borrow money. We all need to borrow money sometimes. If you need to take out a mortgage for a new home, get a loan to start a business or pay for your child’s education for example, you may need a Tax Clearance Certificate. You can only get this if all your returns are up to date and filed properly.
SARS might change their minds. If you normally submit a tax return, but this year you don't, SARS could make you pay administrative penalties in future, because you were not compliant.
You may not be able to access your retirement savings. Filing a tax return every year means that if you receive a payout from a fund, then you will receive that money without hassles or hold ups. If you retire or are retrenched, or just need to take money out of your fund early for some reason, you need to be tax compliant.
A complete record stands you in good stead. Having an unbroken filing record gives SARS officials no reason to suspect that you’re hiding information from them, which sometimes triggers an audit the following year. Filing a tax return also means that you’re being a good citizen and contributing towards society!
24 October 2022: digitally via eFiling (non-provisional taxpayers); also all branch filers
23 January 2023: digitally via eFiling (provisional taxpayers)
If you don’t submit your income tax return on time, you may be liable for admin penalties. SARS can charge an administrative penalty which can range from R 250 to R 16 000 per month, or R 3 000 to R 192 000 per year. It does appear though (at the moment), that SARS is issuing smaller penalties ranging between R 500 and R 2 000 per month, but we never know when this could change. The simplest way to avoid SARS issuing a penalty for outstanding returns would be to file your tax return each year, well before the deadline. Rather be safe than sorry.
Once you have a SARS issued tax reference number (this will be a 10 digit number starting with a 0,1,2 or 3) you can get started using TaxTim. Here’s how:
Now that you’ve completed your tax return, there are three simple ways to submit it to SARS:
You have 2 options for a "manual submission" of your tax return.
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 the tax season has opened for that tax year. Tax season normaly runs between July and October each year for the tax year which ended in 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's payroll tax 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 do the source codes on the IRP5 mean?
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.