Paying income tax
Personal income tax is the money you pay to government from your salary or wages, to help pay for roads, schools, hospitals and other government services. The South African Revenue Services (SARS) manages the collection of taxes and ensures that all working citizens contribute fairly. 1 July 2015 is the start of the 2015 Tax Season for individuals.
What happens during Tax Season?
The Tax Season runs from July to November every year. For provisional taxpayers who submit via eFiling, it runs until January of the following year.
During Tax Season, you need to submit an ITR12 form (which is your official Income Tax Return) so that SARS can calculate your tax on your income and the tax-deductible expenses for the year being assessed (1 March 2014 - 28 February 2015).
If, after considering all your income and expenses, SARS determines that you’ve paid too much tax, you’ll receive a refund. If you haven’t paid the full amount due, you’ll be asked to pay the outstanding amount.
For information on how to fill in your ITR12 form correctly, please see:
The important 2015 deadline dates are:
Here’s what you need to know before you get started on your tax return this year.
The amount of personal income tax that you pay depends on:
Examples of income on which you can be taxed include:
Who qualifies to pay personal income tax?
For the 2015 year of assessment (1 March 2014 - 2 February 2015) you need to pay income tax if you earn an annual salary of more than:
If you earn less than R350 000 a year, you don’t need to submit a tax return if:
How do I register to pay income tax?
Register for income tax at a SARS office by completing an IB- IT 77 form. You’ll need the following:
Employees’ tax is the tax that employers must deduct from the employment income of employees – such as salaries, wages and bonuses – and pay over to SARS monthly. It is withheld daily, weekly, or monthly, when these amounts are paid or become payable to the employees.
PAYE ensures that an employee's income tax liability (amount of tax owed) is settled on an ongoing basis, while the income is being earned. The advantage of this is that the tax liability for the year is settled over the course of the whole year of assessment.
The amount of PAYE you pay depends on how much you earn and is calculated using tax tables issued by SARS.
Once a year, your employer will give you an IRP5 tax certificate that shows the total amount that you earned and the total tax that was deducted. If you earn more than R120 000 a year, you need to complete a tax return and send it with your IRP 5 certificates to SARS.
You need to register with SARS before you complete a tax return. If you’ve already registered, your tax return forms will be sent to you in the post.
What is eFiling?
eFiling is an online tax return and submission service. You can register for eFiling if you’re already registered as a taxpayer.
You’ll receive detailed instructions on how to complete the tax return with the forms. When you submit your return, SARS will check that you’ve paid the correct amount of tax.
SARS helps you eFile
What is Help-You-eFile?
SARS has introduced a mobile app that allows you to:
Find out more about the SARS mobile app and how it can simplify your tax returns this year.
Not paying tax that you owe to SARS has severe legal implications:
You can be fined or imprisoned if you’re found guilty of:
For more information:
- Income Tax and the Individual (Public Information)