Income tax is a tax that you pay on the amount of money that you make, that is deemed taxable by SARS. This income could be:
- 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
- Pension income
- Certain capital gains
You are liable to pay income tax if you earn more than:
- R78 150 if you are younger than 65 years.
- If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R121 000.
- For taxpayers aged 75 years and older, this threshold is R135 300.
You do not need to submit a return if ALL the below apply to you:
- Your total employment income / salary for the year (March 2017 to February 2018) before tax (gross income) was not more than R350 000; and
- You only received employment income / salary for the full year of assessment (March 2017 to February 2018) 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).
NUE Chartered Accountants and Registered Auditors providing Auditing services, accounting services, bookkeeping services, payroll services, tax services and advisory services can assist you to comply