Must I submit an income tax return?
Tax season is upon us and it is your responsibility to determine if you need to submit an income tax return to SARS in the form of an ITR12.
In this article we will cover a range of points that will confirm your eligibility to submit an income tax return. When reviewing these points, you will be focusing on the previous tax year, for example in mid 2016 you would be looking at the tax year of 1 March 2015 to 29 February 2016.
Earning an income?
If you earned an income during the tax period in question, you may be liable to submit an income tax return. There are a number of factors that will influence whether or not you need to. These include:
- Whether your annual income was more than a certain threshold – this is age dependent. The thresholds are:
- under 65 years old: R73 650
- 65 to under 75 years old: R114 800
- 75 years old and over: R128 500
- Whether your income was from employment with a single employer and if so:
- whether it was R350 001 or more
- whether you received any other forms of income including a car allowance, rental income, etc.
Receiving an allowance?
If you received an allowance during the period in question (this can be in the form of a subsistence, office bearer or travel allowance), you are liable to submit an income tax return.
Are you conducting trade in South Africa?
If you have any business interest in South Africa including renting property, you will likely need to submit an ITR12.
Have a Capital Gain / Loss?
If you have a Capital Gain or Loss in South Africa for more than R30 000, you will need to file an income tax return. Similarly, if you have a Capital Gain or Loss in a foreign currency, you will also be required to submit an ITR12.
Foreign income, assets or company
Should you earn an income in a foreign currency, you will be liable to submit an income tax return.
If you own assets or hold funds outside of South Africa with a value exceeding R225 000, you are required to submit an ITR12.
Lastly, if you hold any rights in a Controlled Foreign Company, you are also obliged to submit an income tax return.
The above information is intended as a guide only and there may be circumstances that affect whether you are required to submit an income tax return. When in doubt, it is always best to contact a tax professional who can guide you through this process.
For friendly service and expert advice, contact Dirmeik Consulting today.
Cape Town: 021 421 4444,
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Durban: 031 007 0881