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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 ot