Tax Returns

: Tax Returns

Taxpayers should start filling for this year's income tax return in order to avoid penalties. Manual submission deadline for all taxpayers is 30 September 2011. Efiling system started on the 1st of July 2011 and expires on the 25^th of November; nevertheless, it is important for taxpayers to know about tax returns. When, where and who is liable for tax returns and for which type of tax. The following information might give you some clarity on tax related matters.

Who is responsible for the payment of taxation?

Companies and Close Corporations (CC).
Directors of companies and members of CCs.
Partners in partnerships.
Sole traders or sole proprietors.
Employees.
Husbands and Wives.

What is a tax return?

It is a document giving the tax collector (SARS) information about the taxpayer's tax liability. This assures that the taxpayer's gross income was enough that s/he had to file a tax return.

Income tax return

It is an official document that income tax payers are required to complete to state income amounts, deductions, contributions and related financial information for tax purposes.

Income tax is levied on residents' worldwide income, with appropriate relief to avoid double taxation. Non-residents are taxed on their income from a South African source. Tax is levied on taxable income that, in essence, consists of gross income less exemptions and allowable deductions as per the Act.

Small-business corporations (those with an annual turnover of less than R14-million) benefit from a graduated tax rate of 0% on the first R57 000 taxable income, 10% from R57 001 to R300 000 taxable income and R24 300 + 28% in excess of R300 000 taxable income, and can write off certain investment expenditure in the year in which it is incurred. For more info, click here. For Close Corporations Annual Returns, click here.

Value Added Tax (VAT)

VAT (Value-Added Tax) is an indirect tax based on consumption of goods and services in the economy. Revenue is raised for the government by requiring certain traders or vendors to register and to charge VAT on taxable supplies of goods or services.

Who must register for VAT?

Persons who make taxable supplies in excess of R1 million (from 1 March 2009) in any 12-month consecutive period are liable for compulsory VAT registration, but a person may also choose to register voluntarily provided that the minimum threshold of R50 000 (from 1 March 2010) has been exceeded in the past 12-month period. Persons who are liable to register, and those who have registered voluntarily, are referred to as vendors. For detailed information on VAT, click here.

Application forms for VAT

More information for Vendors, click here.

For convenient way of filling, simply visit: www.sarsefiling.co.za

If you would like to get detailed tax information, The South African Revenue Service invites all interested parties to a series of free tax education sessions to be held at Cape Town branch. The aim is to provide taxpayers with information that would create a basic understanding of the various tax types, how these taxes work and what is expected of taxpayers in order to be tax compliant at all times.

For more information and to reserve your seat:
Email: Mark Hansen mhansen(at)sars.gov.za
Call: 021 417 1404- CAPE TOWN

VENUE: 17 Lower Long Street,
2nd Floor, Education Room
Cape Town

Sources:

Updated: 25 July 2011