Who should file tax returns?
Each year South Africans that earned income are required to report earnings to the receiver of revenue.
In South Africa, individuals who earn income are generally required to file a tax return with the South African Revenue Service (SARS). However, it can be confusing to determine who is exempt from this requirement, leading to potential penalties for non-compliance. Here are some key scenarios in which filing a tax return is mandatory:
- Trade Income: Individuals earning income from a trade, such as sole traders, partners in a partnership, trusts, or company owners.
- Rental and Investment Income: Those earning income from rental properties or taxable investments.
- Multiple Income Sources: Individuals with income from more than one source, including those who switch employers.
- Allowances: Individuals receiving allowances such as travel, company car, or subsistence allowances.
- High Income: Individuals with an annual income exceeding R500,000.
- Foreign Income: Individuals earning income from foreign sources.
Note: This list is not exhaustive. If you meet any of the above criteria, you are required to file an annual return by the deadline.
At FMJ Tax Consulting, we help handle your SARS audits and specialize in assisting clients with any tax-related queries.
How FMJ Tax Consulting Can Help
At FMJ Tax Consulting, we specialize in assisting clients who must file annual returns. Our services include:
- Prompt feedback once we receive all your tax documents.
- Proof of submission sent upon account payment.
- Handling SARS queries and keeping you informed until resolution
Contact us today to ensure your tax return is filed accurately and on time!
By when should my returns be filed?
Each year, SARS announces specific deadlines for filing tax returns, which vary based on whether you are a provisional or non-provisional taxpayer.
- Provisional Taxpayers: Those earning additional income exceeding R30,000, such as investment income or income without tax deductions by an employer.
- Non-Provisional Taxpayers: Generally subject to an earlier deadline, typically around October each year. Provisional taxpayers have a deadline around the end of January the following year.
Understanding your taxpayer status is crucial to avoid penalties or dispute incorrect penalties imposed by SARS.
How FMJ Tax Consulting Can Help
We track your status and send reminders to help you file your return before the deadline.
Stay compliant with FMJ Tax Consulting’s proactive tax management services.
Auto or Estimated Assessments
SARS may issue an auto or estimated assessment without your intervention. It is the taxpayer’s responsibility to review and correct any errors within the specified time frame. Failure to do so may result in SARS finalizing the assessment and reserving the right to investigate for up to 5 years if fraud or income misstatement is suspected.
How FMJ Tax Consulting Can Help
For a non-refundable deposit, we will review the SARS assessment to determine its accuracy. If corrections are needed, we will provide a quote and estimated results. We keep our clients on a follow-up list to ensure ongoing compliance.
Let FMJ Tax Consulting handle your SARS assessments and corrections for peace of mind.
Consequences of Failing to File a Return
Failure to file a tax return can lead to severe consequences, including:
- SARS Assessments: Under Section 95 of the Tax Administration Act, SARS may issue an assessment that becomes final if not addressed within 40 business days. This assessment could include linking to your bank account and assessing all credits as income.
- Administrative Penalties: Monthly penalties ranging from R250 to R16,000, depending on income, until the return is filed or for up to 35 months.
How FMJ Tax Consulting Can Help
We proactively reach out to our clients to ensure timely and accurate tax return filings. For complex cases, we start preparations early to expedite final approval and submission when the tax season opens.
