New tax return threshold: 'If in doubt, file anyway'

On Tuesday, new South African Revenue Service (Sars) commissioner Edward Kieswetter announced a shift in the tax return threshold - people earning less than R500,000 per year now do not have to file a return.

The previous threshold was R350,000.

Read: Earn less that R500K per year? Wave goodbye to tax filing

While many have welcomed the move, there are a few potential catches.

Certified financial planner Paul Roelofse says it is vital to understand the conditions that would exempt you from filing a tax return.

It's not to say if I earn under R500 000 I automatically do not need to submit - it's conditional.

Paul Roelofse, Certified financial planner

Roelofse says the stipulation of receiving income from one employer only and with no deductions whatsoever, can be tricky.

If you've got a medical aid certificate or a retirement annuity certificate that you want to include, you need to file... There is a possible tax refund you would get...

Paul Roelofse, Certified financial planner

Aside from missing out on refunds, there are also other practical reasons to keep filing tax returns, even if you do meet the criteria for exemption.

You want that continuity with Sars.

Paul Roelofse, Certified financial planner

When it comes to buying cars and houses you're going to need a tax clearance

Paul Roelofse, Certified financial planner

If in doubt, file anyway.

Paul Roelofse, Certified financial planner

Tax season starts on August 1 2019, but e-filers can submit their returns from July 1.

For more tax return advice, take a listen:


This article first appeared on 702 : New tax return threshold: 'If in doubt, file anyway'


Recommended

by NEWSROOM AI
Read More
What are the best investment options if you decide to go it alone?

What are the best investment options if you decide to go it alone?

Certified financial planner Paul Roelofse gives the lowdown on the money market, retail bonds and exchange-traded funds.

[LISTEN] Starting over after making 'mistakes'

[LISTEN] Starting over after making 'mistakes'

Psychologist Khosi Jiyane helps to find a way through the 'labyrinth' of choices and crossroads we all face as our lives unfold.

South Africans justified in feeling 'skeptical' about NHI bill

South Africans justified in feeling 'skeptical' about NHI bill

Proactive Health Solutions' Dr Fundile Nyathi says clarity is urgently needed after Cabinet approved the 2018 bill this week.

Making the most of pocket money - why it's important

Making the most of pocket money - why it's important

It's Savings Month and parenting expert Nikki Bush has valuable advice on teaching your child about money from a young age.

[LISTEN] Activist Koketso Moeti on 'staying true to vision and purpose'

[LISTEN] Activist Koketso Moeti on 'staying true to vision and purpose'

The founder of social justice platform amandla.mobi talks about the influences that shaped her path.

Earn less that R500K per year? Wave goodbye to tax filing

Earn less that R500K per year? Wave goodbye to tax filing

But Marc Sevitz of TaxTim says it is best to file anyway because you've got to show that you're compliant.

Popular articles
[VIDEOS AND PHOTOS] SANDF troops finally roll into the Cape Flats

[VIDEOS AND PHOTOS] SANDF troops finally roll into the Cape Flats

Residents were out on the streets to watch the troops arriving in Manenberg and Hanover Park on Thursday afternoon.

[WATCH] Tour de France rider smashes into spectator's cellphone

[WATCH] Tour de France rider smashes into spectator's cellphone

Cycling journalist Mikkel Conde tweeted the clip warning spectators to stop leaning over the barriers with their phones.

You made a huge mistake downloading FaceApp if your privacy is important to you

You made a huge mistake downloading FaceApp if your privacy is important to you

Washington Post technology columnist Geoffrey A. Fowler did a forensic analysis of the Russia-based app. Check it out.

Beware 'dodgy' Nadal vs Federer ticket offers

Beware 'dodgy' Nadal vs Federer ticket offers

The Roger Federer Foundation says no ticket platforms are yet in possession of, nor have guaranteed allocation of tickets.

[LISTEN] Voice of the underworld - a 'retired' Cape Flats gangster speaks out

[LISTEN] Voice of the underworld - a 'retired' Cape Flats gangster speaks out

Jason is a 50-year-old former member of The Americans, the largest street gang operating in Cape Town.

'I should have told the Sunday Times the pot smoking was irrelevant'

'I should have told the Sunday Times the pot smoking was irrelevant'

Investigative journalist Jacques Pauw says he's sorry for any harm caused in his article on Mkhwebane and her principal witness.

[WATCH] Over 50 artists record special version of Johnny Clegg’s  “The Crossing”

[WATCH] Over 50 artists record special version of Johnny Clegg’s “The Crossing”

For this week's #GoodNewsThursdays, we find out the inspiration behind the production.