SARS register for tax

A common question we are asked is “How much do I have to earn to pay tax?” Each year SARS provides slightly different tax scales that are used to calculate income tax. In this article we will look at how much you will need to earn in order to be legally obliged to pay tax and how you can go about registering as a SARS tax payer.

How much do I have to earn to pay tax?

As an individual, your tax will be calculated by:

  • Your age
  • The total amount you earn
  • Whether you contribute towards a Retirement Annuity or Pension fund

TIP: Remember that even if you do not earn a salary but are receiving funds from rental income, dividends, annuities, pensions, etc, by law you may be liable to pay tax. Please consult us to find out whether you are legally meeting your tax requirements.

The SARS tax thresholds provide the following age based exemptions for paying tax:

  • If you are below 65 and earn less than R59 750 per annum, you do not have to pay tax
  • If you are between 65 and under 75, earning  below R93 150, you do not have to pay tax
  • If you are 75 and older, earning less than R104 150, you are not required to pay tax

If you are earning above these amounts, you can use the table below to calculate the tax that is payable

Tax tables for  financial year ending February 2012

R 0 – R132 000 18% of each R1
R 132 001 – R 210 000 R 23 760 + 25% of the amount above R 132 000
R 210 001 – R 290 000 R 43 260 + 30% of the amount above R 210 000
R 290 001 – R 410 000 R 67 260 + 35% of the amount above R 290 000
R 410 001 – R 525 000 R 109 260 + 38% of the amount above R 410 000
R 525 001 and above R 152 960 + 40% of the amount above R 525 000

When should I register for tax?

If your income is below the tax thresholds then you are not obliged to register for tax with SARS. However if you have reviewed the tax tables above and find you are earning an amount that is taxable, you will be required to register for tax and submit tax payments and tax returns.

TIP: If you are a business owner or individual, you are permitted to claim for certain business related expenses which can reduce the tax that you are liable for. Before you visit SARS, it is valuable to make an appointment with a tax consultant so that they can review your expenses and advise which can be claimed for.


How do I register for tax?

If you are happy to process all of the documentation yourself, you may register for tax at any SARS branch. However as tax consultants, we can also process your tax registration and submit tax returns on your behalf, allowing you to avoid any long queues. Most importantly, we will help you identify which business expenses can be legally offset against your total earnings, saving you a considerable amount of money. For expert advice and affordable, efficient service, contact Brett today on 021 421 4444.


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