Friday 1 July 2011 marked the beginning of Tax Season 2011.  The submission deadline for non-provisional taxpayers submitting paper/manual returns has now passed.  Non-provisional taxpayers wanting to capture returns electronically have until Friday the 25^th of November 2011 to do so.  Do not miss this deadline!  The deadline will not be extended and taxpayers who fail to meet this deadline will face administrative penalties of at least R250, ranging up to R16 000, accumulating monthly for every month the return is outstanding.

Provisional taxpayers who plan to capture returns electronically have until Tuesday the 31^st of January 2012 to submit them.

Income tax FYI

Who needs to register for income tax?

All those receiving any form of employment income (including those below the tax threshold) need to be registered with SARS to help reduce the scope for non-compliance.

• Who needs to submit a completed and signed income tax return to SARS?

• Taxpayers receiving remuneration of less than R120 000 may elect not to submit an income tax return, provided the following criteria are met: (1) Remuneration is from a single employer; (2) Remuneration is for a full year of assessment (1 March – 28/29 February); and (3) No allowance was paid, from which PAYE was not deducted in full with regards to travel allowance.  However, we advise that a person should submit an income tax return if they contribute to a medical aid or a retirement fund, as this may be beneficial.

• When are you exempt from provisional tax?

• Persons over 65 years, excluding directors of companies and members of close corporations, whose taxable income does not exceed R120 000 are exempt from provisional tax, provided that such income consists exclusively of remuneration, rental, interest and dividends

• Persons under 65 years who do not carry on business, and whose taxable income does not exceed the tax threshold or whose interest, foreign dividends and rental income does not exceed R20 000 are exempt from provisional tax

Come and see us now so that we may assist in making tax simple!