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.
If you earn under R250 000 for a full year from one employer (that’s your total salary income before tax) and have no other sources of additional income (for example, interest or rental income) and no deductions that you want to claim (for example medical expenses, travel or retirement annuities), then you don’t need to submit a return.
Every year, the Minister of Finance announces the rates to be levied by publishing the applicable tax tables during the annual budget speech.
To ensure compliance one must:
- Register for income tax. If you earn a taxable income which is above the tax threshold, you must register as a taxpayer with SARS.
- Complete an IT77 registration form which can be obtained from the SARS website. The form can also be requested from any SARS branch or the SARS Contact Centre. Once it has been completed, it can be taken to any SARS branch for processing or the form can be posted to SARS. To find your nearest branch visit our branch locator.
You must register for income tax at SARS within 60 days of becoming liable for tax.
- Submit a return. If you are registered for income tax, you will be required to submit an annual income tax return to SARS. 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 the 2015 tax year opens on July 1. The income tax return which should be completed by individuals is known as the ITR12 form.
How to submit
- Online. The easiest and quickest way to file a tax return is online, by making use of SARS eFiling. You must, however, first register for eFiling on the SARS eFiling website. They have a page where they 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. Completion of this part will automatically tailor the tax return to your specific tax requirements.
If you need assistance in completing your tax return via eFiling, SARS has dedicated call centre agents who can assist you online by taking you through a parallel, step-by-step “Help-you-eFile” process.
- In a branch. The tax return can also be requested by visiting any SARS branch office. To find your nearest branch visit their branch locator.
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.
- 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.
- Any other documentation relating to the allowable deductions you wish to claim.
