What’s new?
- 24 February 2021 – Tax Rates changes
As per the Minister of Finance’s Budget Speech on 24 February 2021, for the 2022 year of assessment (1 March 2021 – 28 February 2022), the changes are:
- R87 300 if you are younger than 65 years.
- If you are 65 years of age to below 75 years, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R135 150.
- For taxpayers aged 75 years and older, this threshold is R151 100.
- 8 December 2020 – Personal Income Tax enhancements implemented
- Donations to the Solidarity Fund: Contributions made by a taxpayer to the Covid-19 Solidarity Fund during the period 1 April 2020 – 30 September 2020 qualify for a tax deduction:
- For individuals the deduction will only be applicable to the 2021 year of assessment.
- The existing donation deduction of 10% is applicable to the donation to the Solidarity Fund (source code 4055).
- If the excess donation amount, after allowing an amount under code 4011, is attributable to a donation to the Solidarity Fund, that portion is granted an additional 10% deduction (new source code 4055).
- Any further excess will be consolidated and carried forward to the subsequent year of assessment under source code 4011. The deductible donation amount in the subsequent year of assessment reverts to 10%.
- The following enhancements have been made to the Payments functionality on eFiling:
- Payment process (SMS / email)
- Payment Menu structure
- Simplified bank details setup process.
- The following guides were updated:
- Donations to the Solidarity Fund: Contributions made by a taxpayer to the Covid-19 Solidarity Fund during the period 1 April 2020 – 30 September 2020 qualify for a tax deduction:
What is it?
- Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits
- Profits or losses from a business or trade
- Income or profits arising from an individual being a beneficiary of a trust
- Director’s fees
- Investment income, such as interest and foreign dividends
- Rental income or losses
- Income from royalties
- Annuities
- Pension income
- Certain capital gains
Who is it for?
- R87 300 if you are younger than 65 years.
- If you are 65 years of age to below 75 years, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R135 150.
- For taxpayers aged 75 years and older, this threshold is R151 100.
- R83 100 if you are younger than 65 years.
- If you are 65 years of age to below 75 years, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R128 650.
- For taxpayers aged 75 years and older, this threshold is R143 850.
Top tip: You do not need to submit a return if ALL the criteria below apply to you:
- Your total employment income / salary for the year (March 2019 to February 2020) before tax (gross income) was not more than R500 000; and
- You only received employment income / salary for the full year of assessment (March 2019 to February 2020) from one employer; and
- You have no car allowance/company car/ travel allowance or other income (e.g. interest or rental income); and
- You are not claiming tax related deductions/rebates (e.g. medical expenses, retirement annuity contributions other than pension contributions made by your employer, travel).
Still unsure if you need to submit a return? Click here.
What steps must I take to ensure compliance?
If you earn a taxable income which is above the tax threshold (see above), you must register as a taxpayer with SARS.
When should it be submitted?
- 1 September to 16 November 2020: Taxpayers who file online
- 1 September to 22 October 2020: Taxpayers who cannot file electronically can do so at a SARS branch by appointment
- 1 September 2020 to 29 January 2021: Provisional taxpayers who file electronically.
Note: If you have received an auto-assessment SMS from SARS, you can file immediately. If you have not received an SMS, you can also file immediately and do not have to wait until 1 September.
If you don’t submit your income tax return on time, you may be liable for penalties.
How should it be submitted?
- IRP5: This is the employees’ tax certificate your employer issues to you.
- Certificates you received for local interest income earned.
- Any other documentation relating to income received or accrued, such as remuneration that has not been reported to SARS by your employer, or business or investment income, etc.
- Details of medical expenses paid and medical scheme contributions made.
- The relevant certificates reflecting your retirement annuity fund contributions made.
- A logbook and other documents in support of business travel expenses (if the travel allowance is part of your remuneration or if you have the right of use of a company car taxable benefit).
- Any other documentation relating to the allowable deductions you wish to claim.
Related Documents
CRA01 – Confirmation of Residential or Business Address for Online Completion – External Form
EMP-ELEC-02-G03 – An Employers Guide to the AA88 Third Party Appointment Process – External Guide
FORM-AD – Request for Tax Deduction Directive Pension and Provident Funds – External Form
FORM-B – Request for Tax Deduction Directive Pension and Provident Funds – External Form
FORM-C – Request for Tax Deduction Directive Retirement Annuity Funds – External Form
FORM-E – Tax Deduction Directive After Retirement and Death Annuity Commutations – External Form
GEN-ELEC-11-G01 – Guide to Bulk and Additional Payments on eFiling – External Guide
GEN-ELEC-21-G01 – How to download the new SARS eFiling Browser – External Guide
GEN-PT-01-G01 – Guide for Provisional Tax – External Guide
IRP3(a) – Application for Tax Directive Gratuities – External Form
IRP3(b) – Application for Tax Directive Fixed Percentage – External Form
IRP3(c) – Application for Tax Directive Fixed Amount – External Form
IRP3(pa) – Application for Tax Directive Freelance Artist – External Form
IRP6(3) – Payment Advice for the Voluntary Additional Payment of Provisional Tax – External Form
IT-AE-02-G01 – Non Resident Entertainers and Sportspersons – External Guide
IT-AE-36-G02 – Comprehensive Guide to the Income Tax return for Trusts – External Guide
IT-PT-AE-01-G02 – How to eFile your Provisional Tax Return – External Guide
IT12EI – Return of Income Exempt Organisations – External Form
IT144 – Declaration by Donor – External Form
IT180 – Declaration by Employer to Claim Deduction against Learnerships – External Form
IT3(b) – Certificate of Income Investments Property Rights and Royalties – External Form
IT3(e) – Return of Purchases Sales or Shipments – External Form
IT44 – Extract of Income – External Form
IT77C – Application for registration Company – External form
IT77TR – Application for registration Trust – External form
ITR-DD – Confirmation of Diagnosis of Disability – External Form
LAPD-CGT-G07 – Briefing Note on Standard Time Apportionment Calculator
LAPD-Gen-G01 – Taxation in South Africa
LAPD-Gen-G02 – Guide for Tax Rates Duties Levies
LAPD-Gen-G08 – Guide on the Taxation of Professional Sports Clubs and Players
LAPD-IT-G01 – Guide on Income Tax and the Individual
LAPD-IT-G02 – Guide on the Residence Basis of Taxation for Individuals
LAPD-IT-G03 – Guide on the calculation of the tax payable on lump sum benefits
LAPD-IT-G07 – Guide on the determination of medical tax credits
LAPD-IT-G08 – List of Qualifying Physical Impairment or Disability Expenditure
LAPD-IT-G09 – Guide on the Tax Incentive for Learnership Agreements
LAPD-IT-G12 – Guide to the Urban Development Zone Allowance
LAPD-IT-G16 – Basic Guide to Income Tax for Public Benefit Organisations
LAPD-IT-G17 – Basic Guide to Section 18A Approval
LAPD-IT-G18 – Guide to Building Allowances
LAPD-IT-G19 – Comprehensive Guide to Dividends Tax
LAPD-IT-G21 – Guide on the Taxation of Foreigners working in South Africa
LAPD-IT-G24 – Guide on Mutual Agreement Procedures
LAPD-IT-G26 – Tax Exemption Guide for Public Benefit Organisations in South Africa
Frequently Asked Questions
FAQ: Is SITE refundable?
SITE is refundable in the following circumstances: Where the taxpayer...
Read MoreFAQ: Why must I register for Income Tax?
If your earnings for a given tax year are above...
Read MoreFAQ: What is remuneration for tax purposes?
Remuneration is any amount of income which is paid/payable to...
Read MoreFAQ: What is the foreign tax credit limit for individuals?
The rebate is limited to the foreign tax payable and...
Read MoreFAQ: What are penalties for not submitting my income tax return?
The penalties for not submitting a tax return are set...
Read More