Tax season communication toolkit

Take note of the tax season toolkit for disseminating to our stakeholders.

Tax tip #1

Not everyone has to file an income tax return

You do not need to submit a return if ALL of these apply to you:

Your total salary for the year before tax is not more than R500 000; and
You have only one employer; and
You have no car allowance/ company car/ travel allowance or other income (e.g. interest or rental income); and
You are not claiming tax-related deductions/rebates (e.g. medical expenses; travel and retirement annuity contributions, other than pension contributions made by your employer)

But you have to submit a return if you worked for more than one employer or retired or resigned from employment, or your circumstances have changed in a substantial way, including letting out rental property.

You also have to submit a return if you wish to claim tax-deductible expenses such as medical scheme contributions and medical expenses not paid by a medical scheme, and retirement annuity fund contributions, etc.

Use our handy Tax Wizard to see if you need to submit an income tax return. Go to https://www.sars.gov.za/TaxTypes/PIT/Pages/Do-you-need-to-submit-a-return.aspx to see if you need to file a return this Tax Season.

Tax tip #2

The improved SARS MobiApp for smart phones is a smart choice. So App your game and download the MobiApp from the Google Play Store or App Store. With the SARS MobiApp you can use your smart phone to register for eFiling, reset your username and password, file your return, submit supporting documents, make a payment to SARS, set up a Call Back from the SARS Contact Centre and use other services.

Tax tip #3

The enhanced SARS eFiling site allows visually impaired taxpayers to file a tax return. Just download screen reader software. A taxpayer can claim expenses incurred and paid for in relation to a disability suffered by the qualifying taxpayer, his/her spouse, child or dependent.

To claim deductions, the disability needs to be confirmed by a registered medical practitioner who has to complete an ITR-DD form. You do not need to submit the ITR-DD with your tax return. We will let you know if we need it.

Physical impairment is distinguished from disability by the fact that the severity of its effects can be overcome by a device or be corrected through therapy.

People who have physical impairments may claim expenses related to their impairment only when such expenses exceed 7.5% of their taxable income.

Tax tip #4

Expert help is available online from a friendly SARS agent in real-time as you eFile your return.

Click the Help-You-eFile icon once you have logged into your SARS eFiling profile. Select Call Me and a SARS agent will talk you through every step of the way while you complete your income tax return online.

During July the SARS Contact Centre 0800 00 7277 (0800 00 SARS) will operate from 08:00 to 18:00 from Monday to Friday. From August to October, the SARS Contact Centre will operate weekdays from 08:00 to 17:00.

Tax tip #5

You may receive a simulated outcome from SARS if you filed a return last year when you were not required to do so.

You can accept this outcome or update the return and file if your circumstances have changed since Feb 2018, such as you have a new job, you are getting additional income (e.g. rental income) or want to claim for tax-deductible expenses.

For more info visit www.sars.gov.za

Tax tip #6

With eFiling it is really simple to upload supporting documents:

The file type may be .pdf, .doc, .docx, .xls, .xlsx, .jpg and .gif to enable SARS to view the documents.
The maximum allowable size per document may not be more than 5MB and a maximum of 20 files may be uploaded.
Try to scan your documents in batches to ensure that each file is less than 5MB.
You can upload up to 20 files separately, meaning you can upload today without submitting and upload again tomorrow and then only submit. Do not submit until you have uploaded all your files.
Make sure up you upload all the required documents. Once you click the submit button, you cannot submit more documents after that. You can only submit additional supporting documents once SARS asks for them.
Make sure that the image setting on your scanner is set to a 300dpi or less. Your scanner must be set to black and white and not colour.
If you are using the MobiApp you can take a picture of your supporting documents and upload these directly from your smart phone.

Tax tip #7

File on the go and avoid going to a SARS branch. Download the SARS MobiApp for smart phones and enjoy the benefits of SARS eFiling from the palm of your hand, anywhere 24/7.

You can file a return, make a tax calculation, submit supporting documents and many more. Follow us for more #SARSTaxTips19

Tax tip #8

An Administrative Penalty (Admin Penalty) is a penalty levied under Section 210 of the Tax Administration Act. Taxpayers who do not submit their returns will be charged this penalty and have to pay it to SARS. The penalty is charged per month for each return that is outstanding.

Regardless of whether you agree or disagree with the admin penalty it is advisable to submit the outstanding return to stop further admin penalties being levied. The penalty will apply for every month the return remains outstanding.

The penalty amount that will be charged depends on a taxpayer’s taxable income and can range from R250 up to R16 000 a month for each month that a return is outstanding.

Tax tip #9

When paying SARS, always have your Statement of Account at hand because it contains your Payment Reference Number (PRN) that allows you to allocate the payment you are making to the correct period and tax type. See an example of a Statement of Account on eFiling.

Tax Tip #10

Tax Season starts 1 August. If you use eFiling or the SARS MobiApp, you can file from 1 July 2019.

From 1 July register for SARS eFiling and use our refreshed eFiling which can be accessed at www.sars.gov.za

From 1 July you can also download our improved MobiApp for smart phones from the Google Play Store for Android or the App Store for Apple devices.

Closing dates:

- Branch filing closes on 31 October 2019
- eFiling closes on 4 December 2019
- Provisional taxpayers have until 31 January 2020 to file via eFiling

Tax tip #11

If you’re being audited, SARS will send you customised communication so you know which supporting documents you need to send. If SARS requests specific supporting documents and you do not send it within the time stipulated on the audit letter, SARS will revise your assessment. After your return has been assessed, SARS may need to verify certain information. An audit letter will be sent to you outlining exactly which supporting documents to send to SARS. These documents must reach SARS within 21 business days of receipt of the letter. If they do not, then SARS will revise your assessment based on the information that SARS has.

Tax tip #12

In order for a tax practitioner to charge you for their services, they must be registered. You can check whether your tax practitioner is registered with SARS as well as a Recognised Controlling Body (RCB) on the SARS website: https://secure.sarsefiling.co.za/TaxPractitionerQuery.aspx

Tax tip #13

Make sure that you complete your income tax return honestly, accurately and on time. If you submit false information to SARS you are guilty of an offence. If convicted, you will face a fine or imprisonment of up to two years. So file honestly and make sure you don’t end up with a criminal record.

Tax tip #14

Can’t stay on the line? Request a call back from the SARS Contact Centre and you won’t lose your place in the queue. You can also use the Call Back function on eFiling and the SARS MobiApp. A SARS agent will call you back during office hours to resolve your query.

Tax tip #15

If you receive a travel allowance from an employer or principal, you can claim a deduction on assessment of your annual income tax return for the use of a private motor vehicle for business purposes.

Step 1: record your motor vehicle’s odometer reading on 1 March, i.e. on the first day of a tax year.

Step 2: make sure that you keep a logbook throughout the year. It is not necessary to record details of private travel. You may make use of the SARS eLogbook, simply download the logbook for the appropriate year: https://www.sars.gov.za/TaxTypes/PIT/Pages/Travel-e-log-book.aspx

Without a logbook you won’t be able to claim the cost of business travel against your travel allowance.

Step 3: record your motor vehicle’s closing odometer reading on the last day of February (28/29) of the next year, i.e. on the last day of the applicable tax year.

Step 4: calculate your total kilometres for the full year (closing kilometres less opening kilometres).

Step 5: calculate your total business kilometres for the year (sum of all business kilometres).

In respect of every business trip you must record the following:

The date of travel
The kilometres travelled
Business travel details (where you started your trip, where you went and the reason for the trip)

Your travel between home and your place of work cannot be claimed for business purposes, as this is regarded as private travel. A separate logbook must be kept for each motor vehicle where more than one motor vehicle has been used for business travel during the year of assessment.

There are two ways of doing this:

Calculate your claim based on the cost scale table which SARS supplies (you’ll find this table in the introduction section to the travel eLogbook)
Calculate your claim based on actual costs. To do this, you’ll have to keep an accurate record of all your expenses during the year, in addition to keeping a log book. These expenses include fuel, oil, repairs and maintenance, car licence, insurance, wear-and-tear and finance charges or lease costs.

You must keep your logbook for a period of at least five years from the date of the submission of your return, as you may be required to submit it to SARS to back up your claim. Follow us for more #SARSTaxTips19

Tax tip #16

Be aware of identity fraud and protect your username and password for eFiling and the SARS MobiApp.

SARS will never request your banking or personal details in any correspondence that you receive via post, email or SMS. SARS will not send you correspondence with links to other websites.

If you want to verify correspondence from SARS, call the SARS Contact Centre on 0800 00 7277

Tax tip #17

You can pay SARS via eFiling, the MobiApp, internet banking or over the counter at a bank. When making a payment to SARS, always have your Statement of Account at hand, as this contains all the correct payment information that you should use, including the correct payment reference number (PRN). A PRN is a unique payment reference number, used to allocate the payment correctly on our system. The PRN allows you to designate exactly what is being paid/settled, for example which period the payment is for and for which tax type.

If you cannot make the full payment, we will try to sort something out. In certain circumstances SARS can reach an agreement with you to defer your tax debt for later payment or for payment by instalments. Please bear in mind that you will need to discuss your financial position completely, openly and honestly with SARS.

You can make a payment arrangement via:

SARS eFiling
SARS Contact Centre
Visiting a SARS branch

Tax tip #18

Join the world-wide trend of using digital channels to interact with government, retailers and entertainment providers.

Register for SARS eFiling at www.sars.gov.za or download the SARS MobiApp via the Google Play Store for Android or the App Store for Apple devices.

Tax tip #19

A taxpayer can claim expenses incurred and paid for in relation to a disability suffered by the qualifying taxpayer, his/her spouse, child or dependent.

Physical impairment is distinguished from disability by the fact that the severity of its effects can be overcome by a device or be corrected through therapy.

People who have physical impairments may claim expenses related to their impairment only when such expenses exceed 7.5% of their taxable income.

Tax tip #20

Need your Tax Reference Number?

Get it on eFiling if you are registered as an eFiler. Simply login and locate your number on the Income Tax work page.
Request it verbally from the SARS Contact Centre. Have your ID number on hand as we will have to authenticate who you are.
Ask your employer for it.
Visit your nearest SARS branch. Please take along your ID.
Get it on the Notice of Registration you received from the SARS.

SARS will not provide your tax number to another person, unless the person is your tax practitioner or has power of attorney to conduct your tax affairs.

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Take note of the tax season toolkit for disseminating to our stakeholders.

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