With the tax filing season starting on 1 July 2021 and COVID-19 placing undue pressure on the state coffers, you better ensure your tax affairs are in order.
For those of us who who submit tax returns through eFiling, the filing season runs from 1 July 2021 to 23 November 2021.
For provisional taxpayers, the last date for filing is extended to 31 January 2022.
If your income is from a single source, less than R500,001 and employees’ tax is deducted before you receive your salary, you don’t need to submit a tax return.
However, if you receive interest above the exempted allowance, income from a side hustle, or additional allowances from your employer, then you must submit a tax return. Similarly, if you have foreign assets of more than R250 000, or capital gains/losses you also need to submit a tax return.
What documents do I need?
Employees who receive a monthly salary should gather the following documents (where applicable) to state their case to SARS:
- IRP5 Employees Tax Certificate
- SARS logbook, if you receive a travel/car allowance
- Medical tax certificate and also evidence of all other medical expenses incurred
- Retirement Annuity contribution certificate
- Tax certificates indicating interest and dividend income received
- All information (income and expense) relating to any side hustle (If you’re wondering about the expenses you incur in making investments, have a look at Tax Tuesday: Tax deductions and investments)
- If you are married in community of property, the certificates received by both you and your spouse are required
- The necessary evidence relating to any home office expenditure to be claimed
If more than 50% of your salary is from commission, or if you don’t earn a normal salary, you can claim tax deductions for the expenses you incur to produce your income. In this case you need to provide SARS with the tax invoices and proof of payment for these expenses.
Furthermore, no matter what your income stream, you need to keep all the documents that provide evidence of the income and expenses you report in your tax return. By law, you must keep these evidentiary documents for five years from the date that you submitted your return.
A happy ending to filing season
SARS’s filing season doesn’t need to be unbearable. If you ensure that you’re prepared, you can avoid any potential headaches.
Being tax efficient is an important part of great financial management. In this blog, a group of South African tax experts at AJM Tax share their tips and explanations on tax issues. Learn everything you need to know about tax, from deductions you never knew about to retirement savings and capital gains. The first Tuesday of every month is Tax Tuesday.