Tax returns are an important part of any citizen’s financial planning, and South Africa is no exception. Knowing how much you have to earn to submit a tax return in South Africa is essential for ensuring that you are compliant with the regulations and taking advantage of any applicable tax exemptions. This article will provide an overview of the eligibility requirements for tax returns in South Africa, as well as the income thresholds needed to submit a tax return.
Eligibility for Tax Returns in South Africa
In South Africa, all individuals who earn more than the primary rebate threshold are required to submit a tax return. The primary rebate threshold is currently R79,000 per annum (or R6,583 per month). This means that anyone who earns more than this amount is legally required to submit a tax return. Additionally, any individual who has received a taxable income during the tax year must submit a tax return, regardless of the amount earned.
It is also important to note that any individual who is self-employed, a director of a company, or a member of a close corporation must submit a tax return, regardless of the amount of income earned.
Required Income for Tax Returns in South Africa
As mentioned above, anyone who earns more than the primary rebate threshold (currently R79,000 per annum or R6,583 per month) must submit a tax return. However, even if an individual does not earn this amount, they may still be required to submit a tax return if they have received a taxable income. This includes any income from dividends, rental income, interest income, royalties, or capital gains.
In addition, any individual who is self-employed, a director of a company, or a member of a close corporation must submit a tax return regardless of the amount of income earned.
In summary, anyone who earns more than the primary rebate threshold (currently R79,000 per annum or R6,583 per month) must submit a tax return, as well as any individual who has received a taxable income during the tax year. Additionally, any individual who is self-employed, a director of a company, or a member of a close corporation must submit a tax return, regardless of the amount of income earned. Understanding the eligibility requirements for tax returns in South Africa is essential for ensuring that you are compliant with the regulations and taking advantage of any applicable tax exemptions.
The South African Revenue Service (SARS) requires all individuals who meet certain income thresholds to submit an individual income tax return. The income tax filing season runs from 1 July to 31 October of each year, and it is important that taxpayers pay close attention to the income thresholds laid out by SARS, as they can incur penalties if they make late or incomplete tax returns.
In South Africa, individuals must submit a tax return if they have earned more than R83 000 in the previous year and when their gross multiple income amounts to more than R75 000. Any persons earning below those thresholds will not be required to submit a tax return but any income must still be declared. It is important to look noticed that filed tax returns are only for individual income tax, as companies and other trusts have to file separate tax returns.
Furthermore, there are a few other criteria which could result in an individual having to submit a tax return even if they did not make R83 000. This includes if you earned South African income and also earned over R20 000 in foreign income, or to take advantage of tax deductions and credits. Additionally, individuals who are working or conducting some form of business may need to submit a tax return even if their income is below the R83 000.
SARS has introduced a few methods to help taxpayers who are not able to meet the requirements for submitting a tax return. These include its Electronic Filing System, which allows taxpayers to lodge their returns without having to visit a SARS branch. However, any persons earning below the R83 000 threshold but who still need to submit a tax return can access a simplified system provided by SARS. This will significantly reduce the amount of paperwork involved and should make the process easier for any taxpayers.
In conclusion, in order to submit a tax return in South Africa, individuals must have earned more than R83 000 in the previous year or have an aggregate gross income of more than R75 000. Taxpayers who do not meet the income criteria may still be required to submit a tax return and they can use SARS’ simplified system to help navigate the process.
