Personal Income Tax


This is a friendly reminder to all Wealth Masters that the deadline to submit your personal income tax returns for the 2018 year of assessment is around the corner.

In this article, the following frequently asked personal income tax questions will be answered:

When do you qualify as a provisional taxpayer?

When do you become liable for personal income tax?

When do you need to submit a return?

In the past, the deadline used to be at the end of November, but SARS has moved up the deadline by a month to 31 October 2018 to submit your personal income tax return via eFiling.  This is only applicable to non-provisional personal income taxpayers.  If you are a provisional taxpayer, you have time until 31 January 2019 to submit your personal income tax return via eFiling.

When do you become liable for personal income tax?

 

You become liable for personal income tax in the 2018 year of assessment (1 March 2017 to 28 February 2018) if the following occurs:

  • If you are younger than 65 years and your personal income exceeds R75,750.
  • If you are 65 years or older, but younger than 75 years, and your personal income exceeds R117,300.
  • If you are 75 years or older and your personal income exceeds R131,150.

These are called the personal tax thresholds.

Please note:  Your age is determined as at 28 February 2018.  This means that, for example, if you turn 65 before or on 28 February 2018, you qualify for the higher tax threshold, but if you turn 65 after 28 February 2018, the lower tax threshold of R75,750 is still applicable to you.

When do you need to submit a return?

If you meet ALL of the following criteria, you do NOT need to submit an income tax return:

  • Your total gross employment income or salary (before tax) for the year (March 2017 to February 2018) was not more than R350,000.
  • You received only employment income or salary from ONE employer for the full year (March 2017 to February 2018).
  • You have no car allowance, use of company car, travel allowance or any other income, for example interest or rental income.
  • You are not claiming any tax related deductions or rebates, for example medical expenses, travel or retirement annuity contributions other than pension contributions made by your employer.

If you do not meet all of the above-mentioned criteria, you need to submit an income tax return for the 2018 year of assessment.

When do you qualify as a provisional taxpayer?

 

Any person, who receives income from sources other than a salary, is a provisional taxpayer.  Salary earners are usually non-provisional taxpayers – if they do not have any other sources of income.

Earning the following 'exempt' income does not make you a provisional taxpayer:

  • Interest income less than R23,800 if you are younger than 65 years.
  • Interest income less than R34,500 if you are 65 years or older.
  • Income from a tax free savings account.

Do you need assistance with your personal income tax return?

Have no fear when Destinata Accounting is near!

Please feel free to contact services@wealthmastersclub.com to be put in touch with Destinata Accounting. They will give you a quotation to assist you with the calculation and submission of your personal income tax returns.




 
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