Tax Season 2022
Personal Income Tax, What is it?
Income tax is the normal tax which is paid on your taxable income.
Examples of amounts an individual may receive, and from which the taxable income is determined, include –
Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits
Profits or losses from a business or trade
Income or profits arising from an individual being a beneficiary of a trust
Director’s fees
Investment income, such as interest and foreign dividends
Rental income or losses
Income from royalties
Annuities
Pension income
Certain capital gains
Who is it for?
You are liable to pay income tax if you earn more than:
For the 2022 year of assessment (1 March 2021 - 29 February 2022
R87 300 if you are younger than 65 years.
If you are 65 years of age to below 75 years, the tax threshold (i.e. the amount above which income tax becomes payable) is R135 150.
For taxpayers aged 75 years and older, this threshold is R151 100.
If the following apply to you, you have to submit a tax return:
Did you conduct any trade in South Africa?
If you are a South African tax resident, did you conduct any trade or employment outside South Africa?
Did you receive an allowance such as a travel, subsistence or office bearer allowance? Check your IRP5/IT3(a) if unsure.
Did you hold any funds in foreign currency or assets outside South Africa that have a combined total value of more than R250 000 at any stage during the tax year?
Did you have Capital Gains or Capital Losses exceeding R40 000?
Was any income or a Capital Gain from funds in foreign currency or assets outside the Republic attributed to you?
Do you hold any participation rights in a Controlled Foreign Company?
Did you receive an Income Tax Return or were you asked to submit an Income Tax Return for the tax year?
What can I do before I complete my tax return?
Gather your supporting documents, for example your IRP5/IT3(a)s, medical scheme certificates, pension and retirement annuity fund certificates and travel logbook. You don't need to submit them but you will need them to check the pre-populated part of your return and to complete the other sections. Remember, you need to keep these for five years in case SARS verifies or audits your tax return.
Filing deadlines:
1 July 2022 to 24 October 2022 – Non-provisional taxpayer (i.e. salaried employees)
Taxpayers who cannot file online can do so at a SARS branch by appointment only.
1 July 2022 to 23 January 2023 - Provisional taxpayer (i.e. self-employed, rental earners, freelancers, etc)
*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.
Source: SARS.GOV.ZA