NATIONAL NEWS - The South African Revenue Service (Sars) says its recent announcement about a new category of taxpayers who no longer required to file a tax return has been misunderstood.
In a statement, the service said the tax season was about filing an income tax return to ensure that the taxpayer’s tax affairs were in order.
“Most salaried taxpayers have already paid tax through Pay As You Earn (Paye), which is deducted from their salary by an employer who pays the tax deduction over to SARS,” read the statement.
The service stated that if such taxpayers are required to file a return, such as those who earn above R500 000 per year, it is generally required of them to confirm what Sars already knows about their income and financial status.
“However, other taxpayers who may earn below the filing threshold, are required to file a return because they need to declare other sources of income, such as rental income or business income, or to claim tax-related deductions such as medical expenses not covered by their medical aid, retirement annuity contributions and travel expenses,” Sars said.
Sars would then reconcile what was paid over by the employer with what the taxpayer declares on their income tax return.
“After this reconciliation, the assessment or tax calculation may result in the taxpayer needing to pay into Sars, due for a refund or neither.”
The service reminded taxpayers that the tax season is not about refunds and filing a tax return does not guarantee a refund.
Sars explained the threshold of R500 000 and criteria for those not required to file below:
– The threshold refers to those who are not required to file a tax return, it does not refer to who must not pay tax.
-The filing threshold is not the same as the tax threshold to pay tax or have Pay As You Earn (PAYE) deducted. You have already paid over tax through the Paye deducted from your salary if you earn more than R79 000 per year for those under 65 years for the 2020 tax year.
The threshold of R500 000 is not the only condition. All the following conditions must also apply before you can cross yourself out for filing a tax return:
-Your remuneration is paid from one employer or one source (if you changed jobs during the tax year, or have more than one employer or income source, you must file)
– You have no car or travel allowance, a company car fringe benefit, which is considered as additional income
– You do not have any other form of income such as interest, rental income or extra money from a side business such as selling Tupperware or baked goods
Employees tax (i.e. Paye) has been deducted or withheld
Sars also assured that they will do a tax calculation for those taxpayers not required to file as though they did file.
“This will provide the taxpayer with written confirmation that they are in good standing with SARS.”
The public should take note of the tax filing dates below:
– eFiling opens on 1 July and closes on 04 December
– Branch Filing opens on 1 August and closes on 31 October
– Provisional taxpayers have until 31 January 2020 to file via eFiling.