Tax Updates

As you all heard or know , the only thing that remains a constant in the world, is death and TAXES

So who pays tax and needs to submit a tax return and when is this submitted?

Indirectly or directly we all pay tax in some form or the other. Whether it is PAYE (Pay As You Earn), VAT, Fuel tax, transfer duty, etc. When is comes to us physically paying the Receiver, we are all very concerned and directly affected. When purchasing the lovely bottle of red wine, we do not even think about the tax attributed to that. Simply human nature.

Who is eligible to pay tax. Basically anyone who earns an income in the form of a salary, commission, fees etc.

• 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 profit or losses
• Income from royalties
• Annuities
• Pension income
• Certain capital gains

You are liable to pay tax for the 2022 year of assessment (1 March 2021 – 28 February 2022) if you earn more than

• 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) is R135 150.
• For taxpayers aged 75 years and older, this threshold is R151 100.

SARS had introduced auto assessments, which automated your return for you and all that you had to do was review, make any adjustments and submit your return. This year over 3 million returns has been auto assessed. You would have been notified by SARS via SMA, Email or basically your preferred method.

One last bit of information before I leave, SARS had announced yesterday, that refunds would take longer than 72 hours, as originally specified. So i guess if you expecting a refund, be a little more patient.

Have a great day…..