How is interest paid to a non-resident from a South African source taxed?
As from 1 March 2015 interest from a South African source, paid to a non-resident will be taxed at a final withholding tax rate of 15%.
Where can I find information to help me fill in my ITR12 correctly?
For information to fill in your ITR12 correctly:
See Completing your ITR12
ITR12 – Comprehensive Guide is available here
Visit the Tax Season webpage for all the latest information.
If the populated information is incorrect on my ITR12 return, how do I correct this?
For manual completion:- If the populated information is incorrect, you can change any populated information by :-Using a black pen to write over the information printed in pink
Can I claim professional subscription fees as a chartered accountant?
A person who earns remuneration income (which is not derived mainly from commission) cannot claim professional subscription fees against the income received.
Why am I not able to change my identity number/passport number/passport country and passport issue date on my ITR12?
SARS checks your Date Of Birth, ID number and Passport number with the Department of Home Affairs (DOHA), who are the official register of all Identification information. Consequently SARS won't allow changes to this DOHA information on the return.
How can I change my identity number/passport number/passport country and passport issue date?
You will have to visit your nearest SARS branch to ask for the changes to be made.
The taxpayer identification number (ID) and associated date of birth as well as passport details can only be changed in the SARs branch.
I am using Adobe PDF and I’m not able to Save or File my ITR12 on eFiling?
If you are unable to Save or File your ITR12 on eFiling when using Adobe PDF, and get an error message
Follow these simple steps
What must I do if my IRP5/IT3(a) information is not on my Income Tax Return (ITR12)?
The ITR12 has been generated and contains the latest information SARS has on record.
If your return doesn't contain all your IRP5/IT3(a) information this means that:
What does "manual intervention" mean when submitting my Income Tax Return (ITR12)?
Manual intervention means that human intervention is needed to finalise your assessment. The system can't finalise the assessment automatically.
I will be starting to work overseas, but have never worked in South Africa nor registered for tax. Will I need to register and pay tax while working overseas?
South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income was earned.
Will non-residents be required to declare interest subject to withholding tax on their income tax returns?
Under normal circumstances they will not have to since they are not tax resident in South Africa and section 10(1)(h) exempts the interest from normal tax.However, if the provisions of section 10(1)(h) are not met
Why must I register for Income Tax?
If your earnings for a given tax year are above the tax threshold, you are obliged by law to register for income tax.
You must register for income tax, if you are an individual:
What is the threshold for the non-submission of an ITR12 for individuals?
Although a taxpayer still has to register for income tax he/she may choose not to submit a return if the following conditions are met:
What is remuneration for tax purposes?
Remuneration is any amount of income which is paid/payable to any person whether in cash or otherwise (e.g. fringe benefit) and whether or not for services rendered.
What is the foreign tax credit limit for individuals?
The rebate is limited to the foreign tax payable and may not exceed the result of the folowing formula: Total Normal Tax in South Africa x taxable foreign income / total taxable income.
What are penalties for not submitting my income tax return?
The penalties for not submitting a tax return are set out in Chapter 15 of the Tax Administration Act. They differ according to behaviour of the taxpayer.
Can a registration for income tax be backdated?
Must I submit a return if I have multiple IRP5’s but the income for each one is less than R70 700?
Yes, if you have more than one source of remuneration, of which each income is less than R70 700, a tax return must be submitted.
What happens if I don’t have a local bank account?
If you don’t have a local bank account you need to do the following:
Select the field for ‘Mark here if you do not have a local savings or cheque account’ on the applicable form
Complete the declaration for no local savings/cheque account.
What happens if my employer doesn't send SARS my IRP5/IT3(a) on time?
SARS can't provide you with a populated return nor process your return until your IRP5 tax certificate information from your employer is received.
What if the taxpayer receives a notice of assessment from SARS and realises that excess contributions were not taken into account?
The taxpayer must lodge an objection using the Notice of Objection form either via eFiling or walk-in. See www.sars.gov.za>Client Segments > Individuals > What if I do not agree > Objections
Which grounds must the taxpayer use to object for excess fund contribution?
Excess contributions and or own contributions not allowed as an exemption towards the compulsory annuity income.
Which supporting documents must the taxpayer attach when lodging the objection for excess fund contributions?
Any supporting documents to support the excess fund contributions e.g. Notice of assessment (ITA34) or in the case of a provident fund a letter from the fund indicating the members own contributions from commencement date.
Are there any additional Medical Expenses Tax Credits for the 2015 tax year of assessment?
Yes, ‘Medical Aid Deduction’ is now displayed as part of the Rebate amount.
In 2014, only the ‘Medical Tax Credit’ was added to the Rebate amount, and source code 4008 was calculated and displayed as a deduction.
When I retire, is it compulsory to buy an annuity?
No, it’s not compulsory to buy an annuity when you retire. The minimum threshold to purchase an annuity has changed from R75 000 to R247 500.
What are S11(k) annual allowable deductions?
The formula to calculate the maximum allowable deduction has changed from the 01 March 2016. The deduction allowed is now the pension, provident and retirement annuity fund contributions (added together) but limited to the following:
What is remuneration?
Remuneration means any amount of income which is paid or is payable to any person by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument, pension, superannuation allowance, retiring allowance or
What is the impact of Section 11(k) on me as a taxpayer?
Any contribution by an employer to a retirement fund for the benefit of the employee will be taxed as a fringe benefit in the hands of the employee. This will be prepopulated on the ITR12 from the IRP5 submitted by the employer.
Can I edit the fields on my IRP5?
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.