Taxpayers should have started their tax returns already. The 2010 tax Season for individuals started on 1 July 2010. 30 September 2010 is a deadline for submission of postal/SARS drop box returns (Provisional and Non-provisional: Individuals and Trusts). 26 November 2010: Deadline for submission of eFiling/branch returns (Non-provisional: Individuals and Trusts). 31 January 2011: Deadline for submission of  eFiling/branch returns (Provisional: Individuals and Trusts)

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.

Who needs to register for income tax?

You need to register and submit a tax return if you receive employment income that exceeds a specified annual amount e.g. R120 000. If you earn under or R120 000 for a full year from one employer (total salary income before tax) and have no car allowance, additional income or deductions that you want to claim for, then you don't need to submit a return to SARS. However, under certain conditions you may need to submit a return even if your salary does not exceed this amount. For more information, click here.

 For Close Corporations Annual Returns, click here.

 Calculating tax of a business owner

• Tax is calculated in accordance with tax tables for natural persons available from the SA Revenue Services which your accountant will have copies of.
• Tax payable is reduced by the amount of the tax rebate - a primary rebate (R3 800.00 - year 2001) and a secondary rebate for people over 65 (R2 900.00)
• As a director, member or sole proprietor you pay tax in your personal capacity at the same rate as an individual i.e. the more you earn the more you pay. 

 Value Added Tax (VAT)

A tax levied on the value-added income of a business. The VAT is defined as the difference between the total sales revenue and the costs of intermediate inputs, such as raw materials, used in the production process.

Who must register for VAT?

A business with an annual turnover of more than R 300 000 is obliged to register for Value Added Tax. This s a COMPULSORY VAT Registration.

A business with an annual turnover of less than R 300 000 but more than R 20 000 may also register for Value Added Tax. This is a VOLUNTARY VAT Registration.

You are required to register as soon as you expect your business turnover (total gross sales) to exceed R300 000 for a period of 12 successive months. For more information, click here.

Application forms for VAT

More information for Vendors, click here.

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

NOTE: No returns for those who earn less than R120 000 per year.

Sources:

• SARS
• SAICA
• SA Close corporations

Last Update: 04 August 2010