Paying income tax
What is income tax?
Income tax is the money you pay to government from your salary or wages, to pay for roads, schools, hospitals and other government services.
The amount of tax that you pay depends on:
Examples of income on which you can be taxed include:
Who should register for income tax?
If you receive any form of employment income, even if you are below the tax threshold, you must register for income tax. This helps SARS reduce the scope for non-compliance.
You can register for income tax at a SARS office by completing a IB- IT 77 form. You will need the following:
Who qualifies to pay income tax?
If you earn less than R250 000, you can choose not to submit a tax return if you:
Once you have been registered and given your tax number, you can then register on www.sarsefiling.co.za as a tax payer and fill out your returns online.
SITE and PAYE
There are two main types of tax that are deducted from an employee's salary or wages:
SITE, is not a separate tax. It is merely a method that means employees who earn less than a certain amount pay income tax as a full and finial liability on the information to the specific employer. SITE generally applies to individuals:
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. A person who receives remuneration less than R120 000 may choose not to submit an income tax return, provided the following criteria are met:
You must register with SARS before you complete a tax return. If you are already registered, your tax return forms will be sent to you in the post. You can also collect the forms from your nearest SARS office. You can also receive and submit your tax returns electronically using the the SARS eFiling system.
e-Filing is an electronic tax return and submission service. You can register for eFiling if you are already registered as a tax payer. You will need your tax reference number and ID number. You will receive detailed instructions on how to complete your tax return on the e-form.
You will need:
When you submit your tax return, SARS will check that you have paid the correct amount of tax. If you have paid too much tax you will get a refund. If you have not paid enough tax you will be asked to pay the outstanding amount. You can also collect a copy of the forms from your nearest SARS office.
You can be fined or imprisoned if you are found guilty of: