South African citizens are expected to pay tax annually. The amount of tax payable is calculated according to the amount of income earned. Individuals must calculate their taxable income per tax year. If one’s earnings are below a certain threshold for the year, a return does not have to be submitted. Of course, there are other terms and conditions that apply, so it is best to take the advice of a tax consultant. By definition, a “tax year” is an accounting period that is used to keep records of income and expenses for each year. Tax years can be defined in terms of a calendar year, which is 12 months long, starting on 1 January and ending on 31 of December, or a fiscal year, which consists of 12 consecutive months and ends on the last day of any other month, except December.
For the duration of the tax year, it is important to calculate your income and expenditure so that a personal income tax return can be submitted on time. While the South Africa Revenue Service provides the eFiling system, which makes it possible for individuals to handle their own returns, it is often advised that you make use of a professional tax consultant to ensure that calculations are accurate and that returns are handled correctly and submitted on time.
Tax Season in South Africa
Tax season in South Africa runs from July to November, each year. In order for us to properly handle your return for the upcoming tax year in 2018, we will need you to provide us with the required documentation. This includes:
- Financial statements for business returns.
- Receipts for medical aid contributions.
- Certificates for retirement annuities.
- Proof of business travel expenses.
- Bank account details.
- IT3(b) if you have investment returns.
- ITR-DD, if you want to claim any disability expenses.
When submitting a tax return, it is important to keep your supporting documentation for up to five years. The current tax year focussed on is tax year 2018, which runs from March 2017 to February 2018.
At Tax Leaders, we place emphasis on customer service excellence. Our qualified and experienced tax consultants can assist you with all of your tax returns for the current and upcoming tax year. To determine your specific needs and requirements, we strongly suggest that you get in touch with one of our consultants. Simply give us a call or send us an email today.