May 15, 2008
Sars simplifies personal income tax filing processBack
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
Creamer Media Senior Researcher and Deputy Editor Online
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...