Before you file your income tax returns, it is a good idea to get a better understanding of what personal income tax is. Income tax is a standard tax, which is paid to SARS on your taxable income. Income tax is charged on one’s regular income, such as a salary, wages, overtime pay, and even bonuses, but that is not all. It can also be calculated on other amounts that result from any of the following:
- Profit and loss from a business.
- Profit or income earned as a beneficiary of a trust.
- Director’s fees.
- Income earned (or loss sustained) through rental of property.
- Income earned from investments (including interest and foreign dividends).
- Profit earned through royalties.
- Annuities.
- Pension fund.
- Certain capital gains.
If you are younger than 65 years of age and earn R75 750 or more for the year running 1 March 2017 to 28 February 2018, you are liable to pay personal income tax. In previous years, the income threshold differed as follows: R75 000 (2017) and R73 650 (2016). Income tax returns must be completed and submitted on time in order to avoid penalties. The submission date for 2017 is 24 of November for both provisional and non-provisional returns. If you are paying by means of eFiling and are a provisional taxpayer, you have until 31 of January 2018.
So, what is the Difference Between Provisional and Non-Provisional Income Tax?
Provisional income tax is imposed on people who earn additional income that is not coming from a salary. These people pay tax twice a year. Non-provisional tax payers are those who earn a salary and make annual income tax contributions.
Tax Leaders Provide Professional and Affordable Assistance with Income Tax Returns
At Tax Leaders, we are able to assist you with your upcoming income tax return. You will find that our team of professional accounting consultants can provide you with all the required information as well as fully process your income tax return on your behalf. With our assistance, tax returns can be simpler than they have ever been before.
If you would like to learn more about income tax returns, or if you would simply like professional assistance to ensure that your return is completed accurate and submitted on time, get in touch with Tax Leaders. Contact us via email or telephone for more information and advice today.