R/€ = 14.02
R/$ = 10.68
Au 1287.46 $/oz
Pt 1424.00 $/oz
May 15, 2008
Sars simplifies personal income tax filing processBack
Africa|System|Systems|Africa|South Africa|E-filing|Logistics|Supply New Software|Systems|South African Revenue Service|Trevor Manuel
© Reuse this
The new changes would require that employers submit accurate pay-as-you-earn (PAYE) information.
South Africa would have two filing seasons, one for employers and another for individuals. Employers would have between July 1, 2008, and August 29, 2008, to file their PAYE and have this information reconciled by the South African Revenue Service (Sars) before sending out workers' IRP5 forms.
Employers are required to issue employees with IRP5 tax certificates, where tax has been deducted from salaries.
Sars said that it had developed and would supply new software to employers to enable them to achieve simpler PAYE reconciliations.
The information would be prepopulated on the individual's tax return form and, thus, simplify the tax-filing process. Individuals would have until November 21, 2008, to submit manual tax returns and until January 23, 2009, to submit e-filing returns.
Further, Sars said that individuals that earned less than R120 000 a year and only had a single employer and no additional income or expenses in the year, would not be required to file an individual tax return.
It would have the information on its system and would be able to monitor noncompliance from those that were suppose to file a tax return, it stated.
Manuel called the tax-return simplification process one of modernisation and said the system was maturing.
Sars also said it had created a customised tax return form. The two new income tax returns, the IT12S and IT12C, which were introduced last year, would be merged into a single income tax return for individuals, the ITR12. The return would be customised according to the complexity of a taxpayer’s income tax affairs.
Those with standard declarations would receive a return containing only the necessary fields, while individuals with foreign dividends or business income, would receive the appropriate additional fields.
Owing to this, as well as the logistics and costs involved with sending out tax returns, Sars would send out letters to all registered taxpayers that would require individuals to request a tax return.
Requests for a tax return could be made telephonically, by using eFiling, sending a return request attached to the letter, or by visiting any Sars office.
All forms and requests would also be made available in multiple languages.
Sars explained that it had implemented a four-tier structure to its control centres in order to upgrade its service to taxpayers. This structure would allow taxpayers to reach the correct persons to deal with their specific queries.
Sars commissioner Pravin Gordhan said during a media briefing that the costs involved with its entire modernisation process, or personal income tax reform programme, which began in 2007, would amount to about R650-million for the year.
Sars noted that it hoped to continue simplifying and updating the tax return process, to the point where all third-party data, such as data from medical aid schemes, were prepopulated on tax returns.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Updated 6 hours ago Government, in conjunction with industry clusters had to encourage preferential procurement in the mining industry, Department of Trade and Industry (DTI) capital equipment and allied services director Tapiwa Samanga has said. In a statement issued on Monday, he...
Updated 6 hours ago The South African Property Owners’ Association (Sapoa) has appealed to Rural Development and Land Affairs Minister Gugile Nkwinti to invoke the discretionary powers available to him under the Spatial Planning and Land Use Management Act of 2013 to prevent...
Updated 6 hours ago The Financial Services Board (FSB) has extended telecommunications group MTN’s broad-based black economic-empowerment trading platform MTN Zakhele’s exemption to the directive requiring over-the-counter (OTC) trading platforms to apply for a licence to operate,...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...