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The annual Tax Season is upon us, which means that you have from 1 July to 30 November 2017 to complete and submit your Income Tax Return for Individuals (ITR12) to SARS.

Your tax liability needs to be calculated based on your declared income and tax-deductible expenses incurred from 1 March 2015 to 28 February 2016, which may in some cases result in a refund. And who doesn’t enjoy a little extra cash in the pocket?

Who needs to submit an Income Tax Return?

You have to submit an ITR12 if you:

  • earn more than R 250 000 (before deductions) annually.

  • conducted any trade* in South Africa.

  • had an allowance such as a travel, subsistence or office bearer allowance.

  • hold any funds or assets outside of South Africa that have a value of more than R100 000.00.

  • have a local capital gain# exceeding R 30 000.00.

  • have any income or capital gain in a foreign currency.

  • hold any rights in a Controlled Foreign Company.

  • received an Income Tax Return or were asked to submit and Income Tax Return for the tax year.

* The term “trade” is summarised as, any profession, trade, business, calling, occupation, venture or letting of any property, but excluding any employment income (your salary paid out from an employer or place of work).

# Capital gains tax (CGT) is not a separate tax but forms part of income tax. A capital gain arises when you dispose of an asset on or after 1 October 2001 for proceeds that exceed its base cost. Capital gains are taxed at a lower effective tax rate than ordinary income.

What do you need to complete your Income Tax Return?

You should refer to and keep the following supporting documents for at leastfive years:

  • Your Employee Tax Certificate [IRP5/IT3(a)s] which you get from your employer or pension fund.

  • Medical certificates, invoices and receipts for amounts claimed in addition to what was covered by your medical aid.

  • Pension and retirement annuity certificates.

  • Travel logbook – if you receive a travel allowance or use a company car.

  • Tax certificates from investment income [IT3(b)].

  • Completed Confirmation of Diagnosis of Disability (ITR-DD), where applicable.

  • Information relating to capital gain transactions, where applicable.

  • Financial statements if you’re a director of a company.

  • Any other documents relating to income you received or deductions you would like to claim.

Beware of Scams!

This is an ideal time for scammers to try and access your confidential information. SARS will NEVER ask you for your banking or personal details in any form of communication you receive via e-mail, phone, sms or post. SARS will NEVER send you hyperlinks to other websites or even bank websites.

Beware of people who offer to complete your tax return for you and who promise you a refund. Please take note that a person who is not registered with a recognised controlling body (RCB), who prepares your tax return on your behalf, will only be able to perform limited functions and may not charge you and may not submit the return on your behalf.

Use a registered Tax Practitioner

All Tax Practitioners are now required to be registered with a recognised controlling body (RCB) as well as with SARS. You have the right to ask your Tax practitioner for their RCB and SARS registration details in order to verify that you are working with a reputable Tax Practitioner. You can phone SARS or use the facility on e-filing to check the practitioner’s credentials.

Key Note! Even though a Tax Practitioner completes and submits a return on your behalf, it is your responsibility to make a true declaration of any outstanding returns, payments and penalties.

Need help with your return?

Call us or pay us a visit.

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