Personal Income Tax - JCS Business Consulting

Tax Season 2019/2020

SARS has improved eFiling and the MobiApp with several exciting innovations for Tax Season 2019 to make it simpler and more convenient for taxpayers to file an income tax return. To see an example of the ITR12, click here.

This year taxpayers who meet ALL of the following criteria need NOT submit a tax return:

Their total employment income for the year before tax is not more than R500 000
They only receive employment income from ONE EMPLOYER for the full tax year
They have no other form of INCOME (e.g. car allowance, business income, and rental income, taxable interest or income from another job)
They don’t have any additional allowable tax related deductions to claim (e.g. medical expenses, retirement annuity contributions and travel expenses).

Still not sure? Click here to see if you need to submit a return or not.

To further reduce unnecessary trips to SARS branches, taxpayers who were not required to file a return received a simulated outcome from SARS as if they had filed a return. The taxpayer could accept this outcome or update the return and file.

Income Tax Return submission dates

Tax Season 2019 started on 1 August 2019 for non-provisional Individuals
To skip the queues and taxpayers were allowed to start filing via eFiling and MobiApp from 1 July 2019
Closing dates:
- Branch filing closed on 31 October 2019
- eFiling closed on 4 December 2019
- Provisional taxpayers had until 31 January 2020 to file via eFiling.

Supporting Documents

To get ready to submit your tax return, you will need to gather all your supporting documents which include the following:

IRP5/IT3(a) certificate(s) from your employer or pension fund.
IT3(b) certificates for investment returns.
Financial statements, if applicable e.g. business income.
Medical aid contribution certificates and receipts (which can be obtained from your medical aid directly).
Retirement annuity fund certificates (which can be obtained from your retirement annuity fund directly).
Certificates you received for local interest income earned.
Logbook and other documents in support of business travel expenses
Completed confirmation of diagnosis of disability form (ITR-DD), if applicable
Any other relevant income and deduction information.
Bank account details (if your banking details have changed, you will need to manually submit this to your local SARS branch, call SARS on 080 000 7277 to find out more information).

For a complete list of supporting documents, click here.

Top tip: Even though you will be using the supporting documents to complete your return, you mustn’t send them to SARS. You must keep them safely for a period of five years should SARS require them in future.

Remember, if you’re filing at a SARS branch you must bring all the documents applicable to you, plus original proof of identity (ID, temporary ID, passport or driver’s licence).

Top tip: Check your IRP5 and verify if all the information is correct before attempting to submit the return. If you notice any errors which might need to be corrected, kindly advise your employer to rectify it. You will not be able to change these pre-populated fields on the return.

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 2021 year of assessment (1 March 2020 – 28 February 2021)

R83 100 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R128 650.
For taxpayers aged 75 years and older, this threshold is R143 850.

For the 2020 year of assessment (1 March 2019 – 29 February 2020)

R79 000 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R122 300.
For taxpayers aged 75 years and older, this threshold is R136 750.

For the 2019 year of assessment (1 March 2018 – 28 February 2019) – see changes from last year

R78 150 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R121 000.
For taxpayers aged 75 years and older, this threshold is R135 300.

For the 2018 year of assessment (1 March 2017 – 28 February 2018)

R75 750 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R117 300.
For taxpayers aged 75 years and older, this threshold is R131 150.

For the 2017 year of assessment (1 March 2016 – 28 February 2017)

R75 000 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R116 150.
For taxpayers aged 75 years and older, this threshold is R129 850.

For the 2016 year of assessment (1 March 2015 – 29 February 2016)

R73 650 if you are younger than 65 years.
If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R114 800.
For taxpayers aged 75 years and older, this threshold is R128 500.

See more tax rates here.

Top tip: You don’t need to file if your total salary for the year before tax is not more than R350 000, provided:

You only have one employer (but remember if you have two employers or income sources e.g. late spouse / partner pension income, exam markings income, rental income, moonlighting income etc you do need to file even if the total is still under R350 000)
You have no car allowance or other income (e.g. interest or rent)
You are not claiming tax related deductions (e.g. medical expenses, retirement annuity contributions, travel expenses,etc)
You received interest from a source in South Africa not exceeding –
- R23 800 if you are below the age of 65 years; or
- R34 500 if you aged 65 years or older.
- R23 800 in the case of the estate of a deceased person.
Dividends were paid to you and you were a non-resident during the 2017 year of assessment.
Amounts received or accrued from a Tax Free Investment.

Still unsure if you need to submit a return? Click here.

The rates of tax chargeable on taxable income are determined annually by Parliament, and are generally referred to as “marginal rates of tax” or “statutory rates”. The rate of tax levied on an individual is set on a sliding scale which results in the tax increasing as taxable income increases. Every year, the Minister of Finance announces the rates to be levied by publishing the applicable tax tables during the annual budget speech.

What steps must I take to ensure complia

nce?

Step one: You must register for income tax

If you earn a taxable income which is above the tax threshold (see above), you must register as a taxpayer with SARS.If you are not yet registered, you would only be required to visit a SARS branch to register for the first time. All additional tax type reg

istration can be performed from eFiling without having to visit a branch again. You can register once for all different tax types using the client information system.

Kindly note that the ‘IT77 registration form for Individuals’ was discontinued and that the only way to register is to visit a SARS branch where the friendly staff will register you on our system.

Important: Make sure you have all the supporting documents (relevant material) needed. We won’t be able to register you unless all the documents are received.

Step two: You must submit a return

If you are registered for income tax, you will be required to submit an annual income tax return to SARS. See the Tax Tables. The 2019 year of assessment (commonly referred to as a “tax year”) runs from 1 March 2018 to 28 February 2019. Every year, SARS announces its Tax Season, a period during which you are required to submit your annual income tax return. The Tax Season for 2019 opens on 1 August 2019 for branch filers and 1 July 2019 for eFilers. The income tax return which should be completed by individu

als is known as the ITR12 form. The updated ITR12 Comprehensive Guide will be available once the Tax Season opens.

If you have forgotten your password, you can reset by calling our Contact Centre and following a simple procedure.

When should it be submitted?

31 October 2019 for branch filing.
4 December 2019 for non-provisional taxpayers who use eFiling and the MobiApp.
31 January 2020 for provisional taxpayers who use eFiling.

If you don’t submit your income tax return on time, you may be liable for penalties.

How should it be submitted?

Online: The easiest and quickest way to file a tax return is online, by making use of SARS eFiling or the MobiApp. You must, however, first register for eFiling on the SARS eFiling website or using the MobiApp. We have a page where we explain to you in detail how to register for eFiling. Once registered, you can complete the online form to create your return. Note that you will start by completing the first page of the form which contains several questions regarding the nature of your tax affairs (referred to as a return “wizard”). Completion of this part will automatically tailor the tax return to your specific tax requirements.

In a branch: The tax return can also be requested by visiting any SARS branch office. To find your nearest branch visit our branch locator. (Please note that there may be delays and queues during filing season, which is why SARS promotes the use of eFiling as a medium for return submission)

Top Tip: When completing your return, you will require the following documentation in order to verify the existing, pre-populated information that appears in the return, as well as to complete any remaining portions:

IRP5: This is the employees’ tax certificate your employer issues to you.
Certificates you received for local interest income earned.
Any other documentation relating to income received or accrued, such as remuneration that has not been reported to SARS by your employer, or business or investment income, etc.
Details of medical expenses paid and medical scheme contributions made.
The relevant certificates reflecting your retirement annuity fund contributions made.
A logbook and other documents in support of business travel expenses (if the travel allowance is part of your remuneration or if you have the right of use of a company car taxable benefit).
Any other documentation relating to the allowable deductions you wish to claim.

If you have forgotten your password, you can reset by calling our Contact Centre and following a simple procedure.