BLOGGING THE VIEW: 5 things to know for your Income Tax return

If you’ve only just remembered you need to submit an Income Tax return or are doing it for the first time, don’t worry!

There’s still some time before the cut-off date and we’re here to help. We’ve put together a comprehensive list of what you need to know about Income Tax returns, and what you need to do to remain compliant with the South African Revenue Service (Sars).

1. What is Income Tax?
This is the ‘normal tax’ you pay on your taxable income. If you’re a full-time employee, Income Tax is already deducted from your salary, but you might owe on some other income streams.

The taxable income is determined on financial amounts related to:
· Remuneration – your income from employment, such as salaries, wages, bonuses, overtime pay, fringe benefits, allowances, and certain lump sum benefits

· Profits or losses from a business or trade

· Profits from being a beneficiary of a trust

· Director’s fees

· Investment income such as interest and foreign dividends
· Rental income

· Income from royalties

· Annuities

· Pension income

· Certain capital gains

2. Who should submit a tax return?
If you’re earning an income, you have to pay tax – unless you’re earning below the income threshold for tax submission.

You will need to submit an income tax return if:
· You’re an employee earning above the tax threshold

· You’re self-employed such as a freelancer, entrepreneur or sole proprietor

· You earn a commission income, such as sales representatives

· You’re a pensioner or a retiree

· You’re earning additional income from rental properties or investments

· You’re a trustee or executor filing tax returns on behalf of a trust or estate

3. What is the Income Tax threshold?
For the 2025 year of assessment (1 March 2024 to 28 February 2025) / for the 2024 year of assessment (1 March 2023 to 29 February 2024)
· If you’re younger than 65 years: R95 750

· If you’re 65 to 74 years: R148 217

· If you’re 75 years and older: R165 689

4. What are the tax dates?
The South African tax season runs from July to November, with deadlines varying depending on the filing method.

The dates to note are:
· Tax season opens: 1 July 2024

· Auto-assessments: 1 to 14 July 2024

· Submission of tax begins: 15 July 2024

· Tax season closes: 21 October 2024

5. What documents must you submit?
For your Income Tax return, you need to submit the following documentation to verify the existing, pre-populated information on your return:
· IRP5/IT3(a) certificates: Detailing earnings, tax deductions and retirement fund contributions

· Income statements: Documenting additional income sources like rental income or freelance earnings

· Bank statements: Reflecting interest earned, dividends and financial transactions

· Medical aid certificates: Confirming contributions and medical expenses

· Retirement annuity fund (RAF) certificates: Validating contributions to retirement funds

· Travel logbooks: If claiming travel expenses you need a logbook

· Receipts and invoices: Supporting deductible expenses like work-related costs or donations.

For more information, visit www.sars.gov.za

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