In South Africa, the tax year runs from the 1st of March to the 28th (or 29th) of February of the following year. The tax season, which is when individuals are required to file their income tax returns, runs from July to November of the same year. For most individuals, it is easy to feel overwhelmed by tax years and seasons and all the other complexities of when to pay, how much to pay, and who to speak to if something goes wrong. Understanding the basics of tax paying can therefore help ease the pain of having to pay over your hard-earned money to SARS (South African Revenue Services).
Within each tax year the Minister of Finance will propose tax rates in the annual budget speech. The propose will either be endorsed or rejected by parliament. The current tax year, 2018 tax year, is 1 March 2017 to 28 February 2018.
The following tax rates have been set in place for the 2017/2018 tax year:
- Income ranging from nil to R 89 880: 18% of taxable income.
- Income ranging from R189 880 to R296 540: R34 178 + 26% of taxable income above R189 880.
- Income ranging from R296 540 to R410 460: R61 910 + 31% of taxable income above R296 540.
- Income ranging from R410 460 to R555 600: R97 225 + 36% of taxable income above R410 460.
- Income ranging from R555 600 to R708 310: R149 475 + 39% of taxable income above R555 600.
- Income ranging from R708 310 to R1 500 000: R209 032 + 41% of taxable income above R708 310.
- Income ranging from R1 500 000 and above: R533 625 + 45% of taxable income above R1 500 000.
Each tax year, SARS takes the various steps to make the tax season easier to prepare for. While we strongly recommend that you allow a tax professional to handle your returns for you, here are a few tips to help you better prepare for the season and your returns in the future.
- Ensure that you have the following documents readily available:
- IRP5/IT3(a) from your employer and pension fund;
- tax certificates for any investment incomes;
- proof of income; and
- tax-free investment certificates.
- Have proof of your deductions readily available, including:
- medical aid contribution receipts and certificates;
- ITR-DD form if you plan to claim disability;
- retirement annuity certificates;
- travel log books; and
- your ID or passport.
At Tax Leaders, we are dedicated to ensuring that we keep our customers ready for an efficient tax year. We are always available to assist with all of your tax-related issues and questions. Discuss your tax returns with one of our professional tax consultants at Tax Leaders. Send us an email or give us a call at your earliest convenience!