SARS Issues Guide To Tax Registration And Filing
The South African Revenue Service (SARS) has published a simplified guide to help taxpayers understand when they become liable for income tax, how the tax system works, and how to register and submit returns.
According to SARS, individuals become liable for income tax once they earn more than the legislated tax threshold for a specific tax year.
Tax is calculated on a sliding scale, meaning higher earners are taxed at progressively higher rates.
SARS also reminded taxpayers that the tax year runs from 1 March to the last day of February the following year. Taxpayers are then required to submit their returns during the annual Filing Season.
More Than Salary Income
While many employees have tax deducted from their salaries through Pay-As-You-Earn, commonly known as PAYE, SARS noted that other forms of income may also be taxable.
These include income from business activities, directors’ remuneration, trust income, taxable investment income, rental income, royalties, certain capital gains, annuities and pensions.
Employers are responsible for deducting employees’ tax from salaries and paying it over to SARS every month.
SARS added that certain deductions, including retirement fund contributions and medical aid payments, may reduce the amount of tax payable.
How To Register For Tax
SARS said taxpayers can register through their employer, SARS eFiling, the SARS MobiApp, the SARS Online Query System, or WhatsApp.
To register through eFiling, taxpayers must visit the SARS eFiling platform, select “Register”, follow the prompts and request a Notice of Registration, which will contain their tax reference number.
A valid South African identity document is required for registration.
The same registration process is available on the SARS MobiApp. Taxpayers can also use the SARS Online Query System or register via WhatsApp by saving the SARS number, 0800 11 7277, and starting a conversation.
Filing Tax Returns
Once registered, taxpayers can submit their annual income tax return using an ITR12 form, which is customised according to their personal tax circumstances.
SARS continues to encourage taxpayers to use eFiling, saying much of the required information is automatically populated using data submitted by employers and other institutions.
The revenue service said digital platforms have become the preferred option for taxpayers, with most South Africans now filing online.
Supporting Public Services
SARS emphasised that income tax remains one of government’s most important revenue sources, helping to fund public services and social programmes.
“The Income Tax you pay enables the Government to meet the social and economic needs of our country and its people, ensuring a better life for everyone,” SARS said.
Taxpayers who need more information on tax rates, filing deadlines and registration requirements can access guidance through SARS’ online platforms and taxpayer service channels.