It’s tax season again: Must you submit a return this year?

On 28 June, SARS issued a notice setting out details of when and how companies and individuals are to complete their 2013 tax returns. It is an offence with a penalty of up to two years imprisonment if you do not submit a return when required to, so it is worth taking note of the 2013 tax season requirements – and seek advice in doubt!  Individuals who must submit a return  A.Residents and non-residents: any person –

       
  1. Carrying on a trade, or
  2.    

  3. Who makes a capital gain in excess of R30,000, or
  4.    

  5.  Who is issued with a tax return by the Commissioner or is requested by the Commissioner in writing to complete a tax return.

B.Residents who –

       
  1. Have foreign assets or hold foreign currency of over R100,000 in aggregate at any time in the tax year, or
  2.    

  3. Have 10% participation rights in a foreign controlled company.

C.If you meet these thresholds below you are required to submit a return –

       
  1. You are less than 65 and your gross income exceeds R63,556 per annum, or
  2.    

  3. You are 65 but less than 75 and your gross income exceeds R99,056, or
  4.    

  5.  You are 75 or above and your gross income exceeds R110,889.

However, if you meet one or more of the criteria below, you do not have to submit a return –

       
  1. You receive less than R250,000 in gross income from a single employer who deducts the correct amount of PAYE from your income (if you receive allowances such as a travel or subsistence allowance, then this does not apply and you will need to submit a return), and/or
  2.    

  3. Your income is interest income and you receive annual interest of less than R22,800 (if less than 65 years old) or R33,000 (if you are 65 or older).

Note: it is possible that both criteria can apply.  For example you will not have to submit a return if you earn R249,000 p.a. from one employer and also have interest income of R22,000.  This is because SARS can assess you, without a return, from your employer’s IRP5 and/or from the form submitted by the financial institution to SARS of your interest earned. Companies, Close Corporations (CCs), Trusts and Juristic Persons who must submit a return All resident entities must submit a tax return even for South African incorporated companies which are no longer locally resident due to entering into a double tax agreement. Non-resident entities are to submit a return if they carry on a trade through an establishment  in South Africa or make capital gains in South Africa. When must you submit your return?

       
  1. Companies and CCs
         
    • Within twelve months of your financial year end.
    •    

    • Companies and CCs may only submit returns on eFiling.
  2.    

  3. All Other Taxpayers (Individuals, Trusts and Juristic Persons)
         
    • If on eFiling, by 31 January 2014 if a provisional taxpayer or by 22 November 2013 for non-provisional taxpayers.
    •    

    • Manual submissions are due by 27 September 2013 and may be dropped off at a SARS office, dropped at a SARS collection point or posted to SARS.

© DotNews, 2005-2013. This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

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