Vitalis Accounting Personal Income Tax

Personal Income Tax submission

It is that time of year again!

The dreaded personal income taxation submission period has just opened and we are scurrying to submit our personal income tax returns in time (and to claim back our refunds…)

Every year a lot of people panic and stress over what should be included in their annual submission, and what are the allowable deductions they can deduct to make their tax burden smaller.

When we consider the income side of the equation, here are some examples of amounts which an individual may receive, and from which the taxable income is determined:

  • 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

When we consider the deduction side of the equation, here are some examples of amounts which an individual may claim back and are allowed by SARS:

  • Pension fund contributions
  • Retirement annuity fund contributions
  • Provident fund contributions (only from 1 March 2016)
  • Legal costs – under certain qualifying circumstances
  • Wear–and-tear – in respect of certain assets
  • Donations – to approved bodies
  • Repayable amounts – amount received for services rendered as refunded by that person
  • Bad and doubtful debts – employment-related
  • Salary earners who receive certain allowances (for example a travel or car allowance or a taxable subsistence allowance) can claim against the allowance.
  • Property owners who earn rental income from a property can claim certain expenses relating to the property.
  • Individuals involved in a trade (a sole proprietor, partnership or a farmer, etc.) can claim certain expenses relating to the production of income.

You do not need to submit an income tax return if ALL of the criteria below apply to your circumstances:

  • Your total employment income/salary for the tax year (March 2018 to February 2019) before tax (gross income) was not more than R500 000; and
  • You only received employment income/salary for the full year of assessment (March 2018 to February 2019) 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).

If you are unsure about you can actually claim and what you need to declare on your personal income tax submission, contact us for assistance.

Reference: SARS

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