It’s tax time again. Do you need to pay anything, and do you even need to submit a return?

Tax time is certainly not everyone’s favourite time of year, but a little bit of enthusiasm and goodwill towards submitting your tax returns can go a long way. Who knows, this year you may even get a refund. One sure way to make it easier for yourself is to stay informed and up to date on the various factors that play a role in how much tax you need to pay, and if or how you are required to submit a tax return. 

How do you know whether or not you must submit a tax return? 

You are liable to pay income tax if you earn more than R63 556 in the 2013 year of assessment, and are younger than 65 years of age. If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R99 056. For taxpayers aged 75 years and older, this threshold is R110 889. 

Somaya Khaki, the Project Director for SAICA’s Tax Suite  provides some further basic guidelines: “If you have had capital gains or losses exceeding R30 000; or, if you, as a South African resident, held any funds in foreign currency or owned any assets outside the country where the total value of these assets and/or funds at any point exceeded R100 000, you will need to pay tax.” 

With regards to companies, Khaki adds that “if you are a company, you must submit a tax return if: the company is a resident of South Africa or, if the company is not a resident of South Africa, it has carried on a trade through a permanent resident in South Africa or derived any capital gain through a source in South Africa. The company must also submit a tax return if it was founded in South Africa but is not resident here and has an agreement with the government to avoid double taxation.” 

“Lastly, if you have been issued an income tax return or you were requested to submit a return, then you must make the submission irrespective of your income.” 

These are just a few examples of details that you need to be aware of when submitting your tax return - and there are many more. If you are unsure about your tax status, how you should be paying your tax or how much tax you need to be paying, you should contact a professional tax consultant or tax service. You can find registered tax practitioners at www.taxsuite.co.za - a professional tax information database powered by SAICA (The South African Institute of Chartered Accountants). It’s the definitive source for anyone who needs to find a professional tax advisor. 

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