Should I Submit a Tax Return in 2024?
In this article, we look at whether you should submit a tax return. At the end of the article, we will post a form that can assist you in deciding whether you need to submit a tax return.
Not everyone should submit a tax return.
Here are some guidelines:
Who should not submit a tax return:
A natural person or a deceased estate is not required to submit a return if their gross income consists solely of one or more of the following:
- Remuneration (other than retirement lumpsum) not exceeding R500 000 and this is from a single source and where PAYE has already been deducted
- Interest income from a South African Source (not including Interest from Tax-Free Investment vehicles) and this interest does not exceed:
- R23 800 for a person younger than 65 years
- 34 500 for a person who is 65 years or older or
- 23 800 for a deceased estate
- Tax-exempt dividends where the individual was a non-resident throughout the year of assessment;
- Amounts received or accrued from tax-free investments; and
- A lump sum received from a retirement fund with tax deducted according to a tax directive.
Non-residents are required to submit a tax return if:
- The non-resident carried on a trade (business) in South Africa
- The non-resident disposed of an asset in respect of which the Eith Schedule applies
- The non resident’s gross income included interest from a source in the Republic to which provisions of section 10(1)(h) of the income tax Act doe snot apply
The above scenarios do not apply where:
- You are paid or granted certain allowances relating to business travel, accommodation or subsistence
- You are granted table benefits or advantages derived by reason of employment or the holding of any office
- You received or accrued any amount in respect of services rendered outside South Africa.
Commonly asked questions:
What do I need to know concerning the 2024 tax season
We have created a guide for you here.
Am I supposed to submit a tax return?
You need to submit a tax return if you meet specific criteria such as earning above a certain threshold, having multiple sources of income, or wanting to claim tax refunds and rebates. Criteria include:
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- Earning above the tax threshold.
- Having more than one employer or income source.
- Earning rental income, capital gains, or foreign income.
- Wanting to claim deductions for medical expenses, retirement annuities, or other tax credits?
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Do I need to file a tax return with SARS?
If you meet the criteria above. Filing a tax return ensures that you comply with tax laws, potentially receive refunds, and accurately report all sources of income to SARS.
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Why is it important to submit tax returns?
Submitting your tax returns is crucial for several reasons:
- Compliance with legal obligations.
- To claim refunds or rebates due to overpaid taxes.
- Avoiding penalties and interest charges for non-submission.
- Ensuring accurate records with SARS, which can be beneficial for future financial planning.
- Ensuring you have a complete record of filing tax returns and avoiding penalties for non-submission of tax returns
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What happens if you don’t submit a tax return in South Africa?
Not submitting a tax return can lead to:
- Penalties for late submission or non-submission.
- Interest charges on unpaid taxes.
- Possible legal action by SARS.
- Missed opportunities for tax refunds or rebates.
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How much tax will I pay if I earn R6000?
If you earn R6000 per month (R72,000 per year), you are below the tax threshold and typically will not pay income tax. For the 2023/2024 tax year, the tax threshold for individuals below age 65 is R95,750 per annum.
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What does IRP5 mean?
An IRP5 is a tax certificate issued by employers to employees. It details the income earned and taxes deducted during the tax year, which is necessary for filing your tax return.
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Where do I get my IRP5?
Your employer should provide your IRP5. It can also be accessed on your eFiling profile if your employer has uploaded it to SARS. But, it is important to request it from your employer as it forms part of supporting documents for your tax return.
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When can I submit my SARS tax return in 2024?
The 2024 tax season opens on July 15, 2024. Auto assessment will start on 1 July 2024.
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How to reduce taxes in South Africa?
You can reduce your taxes by claiming allowable deductions such as:
- Medical aid contributions and expenses.
- Retirement annuity contributions.
- Donations to registered charities.
- Home office expenses.
- Tax-free savings accounts.
- Ensuring all allowable business expenses are claimed if you are self-employed.
- Keeping detailed records and documentation to support your claims.
- You can read more about basic tax deductions here
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What if I am aggrieved by SARS?
Review the Assessment: Carefully examine the assessment details and gather all supporting documentation.
Request Reasons (Optional): Seek detailed reasons from SARS within 30 days of receiving the assessment to understand its basis, if unclear.
File an Objection: Submit a formal objection, including necessary documents and legal arguments, within 80 business days of the assessment date or the date SARS issues the reasons.
Appeal: If dissatisfied with the objection outcome, lodge an appeal within 30 business days of the notice. This may involve Alternative Dispute Resolution proceedings if elected.
Still unsure if you need to submit a tax return? Click here to find out if you should file a tax return.
How can we assist you? We can help you with:
- Filing a tax return and tax return preparation
- Interpretation SARS missed assessments
- Filing an objection
- Tax planning and advisory
- Bookkeeping and accounting
- Payroll services
- VAT registration
- VAT return preparation and submission
- Tax training and workshops
- Retirement and estate planning