Tax season: what you should know

IN A NUTSHELL: ALL THE CHANGES AND NEW DETAILS

The season kicked off on Saturday for eFilers, while Sars branches opens its doors today to assist taxpayers. Business gives you guidelines to all the changes.

Sars has implemented additional security measures at branches for those who must change personal details.

The 2017 Tax Season kicked off on July 1 for eFilers, while Sars branches opened its doors today to assist taxpayers with submissions. Below are some changes and things to look out for in filing season: March 1 2016 to February 28 2017.

1. Additional disclosure required

A significant change relates to deductions for retirement annuity (RA) contributions.

“You are now required to provide individual policy numbers and the names of the insurers or the funds for each contribution made,” says Johan Troskie, master tax practitioner at JMT & Associates.

Information on medical aid deductions is being strictly applied; check the information on medical aid certificates carefully to avoid delays, he adds.

Medical aid contributions disclosed on an employee’s IRP5 or IT3(a) certificate will no longer automatically be deemed to be claimed by the taxpayer – the rebate for medical contributions and expenditure will solely be based on information in the tax return’s relevant medical sections.

Medical contributions and medical expenses for an immediate family member dependent on the taxpayer for care and support, must also be disclosed separately.

Piet Nel, School of Applied Tax at the South African Institute of Tax Professionals (Sait) head, says Sars requires much more detailed disclosure around distributions from a trust. Trust income from more than one trust must be declared separately.

Individuals who ceased to be tax residents for SA tax purposes during the tax year are required to provide details about when this transpired, as it’ll have triggered a capital gains tax obligation for SA tax residents, Troskie says.

2. Some taxpayers don’t have to file

If a taxpayer’s total annual salary before any deductions and tax is less than R350 000, they only receive an income from one employer, have no other sources of income (e.g. rent, taxable interest, car allowance) and don’t want to claim deductions for medical expenses, RA contributions or travel expenses, the person probably doesn’t have to submit a tax return. The threshold’s unchanged from last year.

3. Additional security measures introduced

Sars has implemented additional security measures at branches for those needing to change personal details. Taxpayers have to show their ID, fingerprints are scanned, a picture taken and the information verified with Home Affairs.

4. Deadlines differ

Most taxpayers who submit returns via eFiling or electronically at a Sars branch must do so by November 24 (non-provisional taxpayers).

All manual or postal submissions must be tendered by September 22. Provisional taxpayers who submit returns via eFiling have a January 31 2018 deadline.