Simple guide to SARS Tax return

Tax return accountants

Simple guide to SARS Tax return

 

Here is a very simple guide to how much tax you will have to pay and when. We’ll also show you what you must do and how you must do it.

How much?

It’s simple you pay tax when you begin to earn income of more than the agreed amount that year and you pay it all your working life up to the age of 65. This tax is worked out on a sliding scale.

 

And when?

Tax works in tax years. The year starts 1st March and ends 28th February. (Except of course in a leap year when it will be 29th February). You need to submit a return in Tax Season.

 

What about other income?

Yes, you do pay tax on other income you may have. So, for example, tax applies on:

  • Income from business activities
  • Income from directorships
  • Income from trusts
  • Investment income
  • Rental income
  • Royalties income
  • Certain capital gains
  • And when you are older on annuities and pensions

 

Employer taxes you throughout the year  triangle You submit your tax return from 1 July  triangle SARS assesses your return  triangle You either pay more or get a refund  triangle If you pay your tax late. You get a penalty for late payment  
     triangle        triangle      
    If you forget there are penalties       62% get a refund      

 

Once off or annual tax services

  • Annual Income Tax Return for Individuals
  • Annual Income Tax Return Assessment for Individuals
  • Annual Income Tax Return for Commission Earners
  • Assets and Liabilities Statement for Individuals (members/directors)
  • Annual Income Tax Return for Registered Entities (IT14)

 

INCOME TAX: INDIVIDUALS AND TRUSTS

Tax rates for the period from 1 March 2019 to 29 February 2020

Taxable income (R) Taxable rates
0 – 195 850 18% of taxable income
195 851 – 305 850 35 253 + 26% of taxable income above 195 850
305 851 – 423 300 63 853 + 31% of taxable income above 305 850
423 301 – 555 600 100 263 + 36% of taxable income above 423 300
555 601 – 708 310 147 891 + 39% of taxable income above 555 600
708 311 – 1 500 000 207 448 + 41% of taxable income above 708 310
1 500 001 and above 532 041 + 45% of taxable income above 1 500 000

 

Trusts other than special trusts: rate of tax 45%

Rebates

Primary R14 220

Secondary (Persons 65 and older) R7 794

Tertiary (Persons 75 and older) R2 601

Age Tax Threshold

Below age 65 R79 000

Age 65 to below 75 R122 300

Age 75 and older R136 750

 

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