Be prepared for the TAX season

So, first things first: What is Tax and why do you pay Tax?

The Tax that we will be discussing in this post will be income tax.  Income taxes are mandatory contributions which is levied on both individuals and corporations’ income or revenue by a government entity.  Taxes are used to finance government activities, which are responsible for the upkeep of a country’s infrastructure and communities.

In plain English, Income tax refers to the amount of your income that is used to finance government projects and responsibilities such as supporting and providing in the needs of public schools and hospitals.  Your Tax contributions are the reason why the government can afford to provide public hospitals with their needed supplies or why children in public schools have stationery items to help them get educated.

When is Tax season?

Tax season starts on the 1st of July 2022, so if you are not fully ready yet – don’t get a fright, you still have a bit of time.

What happens in Tax season?

During this period individual and companies prepare their financial statements and reports of the previous financial year to submit their tax returns.

So, what do I need to have on standby for Tax season?

You will need the following supporting documents to be able to submit your tax return as stated on SARS website:

• IRP5/IT3(a) Employees Tax Certificate (if applicable)
• Certificates received for local interest income, foreign interest income and foreign dividend income (usually the IT3(b) certificate received from your bank and/or investment institutions)
• If you are married in community of property, the certificates received by both you (the taxpayer) and your spouse are required.
• If you married out of community of property, only the certificates that you receive are required.
• Documents relating to medical expenditure such as:
• The income tax certificate from your medical scheme received for the period 1 March and ending 28 February (if you belong to a medical scheme,
• Proof of qualifying medical expenses paid by you and not recovered from a medical scheme.
• Completed ITR-DD Confirmation of Diagnosis of Disability form (if you want to claim disability related expenses)
• The income tax certificate(s) received from the financial institution to which contributions for retirement annuities or pension funds were made
• If you received a travel allowance or a fringe benefit for an employer provided vehicle, you must have a logbook to claim the business travel deductions
• All information relating to capital gain transactions (local and foreign) (ie.  The sale of property or stocks / bonds held as investments)
• Documents and receipts for commission related expenditure including a logbook to claim business travel deductions (If you are a commission earner, documents and receipts related to expenditure such as a telephone, entertainment and a logbook to claim business travel deductions)
• All information relating to the letting of assets
• Financial statements for trading and farming activities (if applicable)
• Any other documents relating to income that must be declared or deductions that may be claimed.

Where can you submit my Tax returns?

You can file your Tax returns by means of any of the following methods:

• eFiling on your computer – simply register for eFiling at www.sarsefiling.co.za
• The SARS MobiApp
• Filing electronically at a SARS branch where an agent will assist you
• Requesting a return to be posted to you and completing your return manually and submitting it at a SARS branch
• Through a trusted and certified tax professional

Still a bit unsure?

If you are still unsure about how to file your taxes or any of the documentation surrounding your tax filing, please feel free to visit the SARS website or contact a trusted and Certified accounting Agency.  Feel free to contact us by using the contact information as provided on our Contact page.