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

9 June 2019 10:47 AM
Tags:
income tax return
tax return threshold
Certified financial planner Paul Roelofse explains why, even if you do meet the exemption criteria, it's still good to have continuity with Sars.

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'


9 June 2019 10:47 AM
Tags:
income tax return
tax return threshold