Tax season hacks, how to win the tax game.
16 Jul 2018 FINANCE
By Zuko Komisa
According to the SARS, over 1.6 million people who were not required to pay taxes did so in the 2016 tax season. The revenue collector also revealed that people who qualify for tax breaks, include the following:
- The taxpayer’s total employment income/salary for the year of assessment (March 2017-February 2018) before tax was no more than R350 000.
- The taxpayer does not want to claim for any additional allowable tax-related, deductions or rebates such as medical expenses, retirement annuity contributions, travel expenses, etc.
- Employment income/salary for the year of assessment should be received from one employer.
- The taxpayer has no other form of income (eg car allowance, company car fringe benefit, business income, taxable interest or rental income or income from another job).
Paying your taxes and being compliant is very important as tax is used primarily to raise revenue for government expenditures, to pay for much needed municipal services, grants for the elderly and so many more critical areas needed by society. Tax revenue also goes towards paying of government workers such as the police, nurses and firefighters.
Other important information you need to know about:
- The deadline for this year’s manual submissions for individual taxpayers returns is October 31, 2018.
- This year, SARS is introducing an auto-assessment pilot programme put in place for the issuing of assessments to taxpayers who do not need to submit returns in future.
- Taxpayers are being encouraged to use eFilling, this is to boost efficiency and to allow fewer people to physically go to the SARS offices. There is also a Help-You-eFile service, which connects taxpayers to one of its agents in real time.
- When doing your filling, remember the Important supporting documents. Your IRP5 (a tax certificate), which you get from your employer, proof of your identity, proof of residence, and banking details to make the process smoother.
Recently, Gugulethu Mfuphi had a conversation with Zwelodumo Mabhoza, founder of Priority Tax Solutions and CFP Gerald Muwandiambira around financial planning for the new tax season on Kaya Bizz.