Personal income tax

What is income tax?

Income tax is the normal tax which is paid on your taxable income.

Examples of amounts an individual may receive, and from which the taxable income is determined, include –

•Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits

•Profits or losses from a business or trade

•Income or profits arising from an individual being a beneficiary of a trust

•Director’s fees

•Investment income, such as interest and foreign dividends

•Rental income or losses

•Income from royalties

•Annuities

•Pension income

•Certain capital gains


Who is income tax for?

You are liable to pay income tax if you earn more than:

For the 2019 year of assessment (1 March 2018 - 28 February 2019) -

•R78 150 if you are younger than 65 years.

•If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R121 000.

•For taxpayers aged 75 years and older, this threshold is R135 300.



What steps must I take to ensure compliance?

Step one: You must register for income tax

If you earn a taxable income which is above the tax threshold (see above), you must register as a taxpayer with SARS.

Step two: You must submit a return

If you are registered for income tax, you will be required to submit an annual income tax return to SARS.


When should it be submitted?

•4 December 2019 for non-provisional taxpayers who use eFiling.

•31 January 2020 for provisional taxpayers who use eFiling.

If you don’t submit your income tax return on time, you may be liable for penalties.




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