Personal Income Tax

What's New?

From 4 December 2015 for Income Tax, taxpayers will be able to electronically at a SARS branch and via eFiling:
  • Lodge disputes
  • Request suspension of payment
  • Request for remission (RFR) of interest and penalties
Top tip: The RFR can only be done via eFiling once the ITA34 has been issued.
 
Taxpayers can also now request suspension of payment electronically at the same time as filing the Dispute. Please note that Suspension of Payment can be requested with Dispute at a Branch and not via eFiling as eFiling only supports standalone Suspension of Payment and not Suspension with Dispute. 
 
Please note that the RFR form and the Dispute forms can no longer be requested via the SARS Contact Centre.
 

What is it?

Income tax is the normal tax which is paid on your taxable income.
Examples of amounts an individual may receive, and from which the taxable income is determined, include –
  • Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits
  • Profits or losses from a business or trade
  • Income or profits arising from an individual being a beneficiary of a trust
  • Director’s fees
  • Investment income, such as interest and foreign dividends
  • Rental income or losses
  • Income from royalties
  • Annuities
  • Pension income
  • Certain capital gains

Who is it for?

You are liable to pay income tax if you earn more than:
 
For the 2017 year of assessment (1 March 2016 - 28 February 2017)
  • R75 000 if you are younger than 65 years.
  • If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R116 150.
  • For taxpayers aged 75 years and older, this threshold is R129 850.

For the 2016 year of assessment (1 March 2015 - 29 February 2016)
  • R73 650 if you are younger than 65 years.
  • If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R114 800.
  • For taxpayers aged 75 years and older, this threshold is R128 500.

See more tax rates here.


Top tip:
You don't need to file if your total salary for the year before tax is not more than R350 000, provided:
  • You only have one employer (but remember if you have two employers or  income sources e.g. late spouse / partner pension income, exam markings income, rental income, moonlighting income etc you do need to file even if the total is still under R350 000)
  • You have no car allowance or other income (e.g. interest or rent)
  • You are not claiming tax related deductions (e.g. medical expenses, retirement annuity contributions, travel expenses,etc)
  • You received interest from a source in South Africa not exceeding -
    • R23 800 if you are below the age of 65 years; or
    • R34 500 if you aged 65 years or older.
  • Dividends were paid to you and you were a non-resident during the 2016 year of assessment.

Still unsure if you need to submit a return? Click here.

The rates of tax chargeable on taxable income are determined annually by Parliament, and are generally referred to as “marginal rates of tax” or “statutory rates”. The rate of tax levied on an individual is set on a sliding scale which results in the tax increasing as taxable income increases. Every year, the Minister of Finance announces the rates to be levied by publishing the applicable tax tables during the annual budget speech.

What steps must I take to ensure compliance?

Step one: You must register for income tax

If you earn a taxable income which is above the tax threshold (see above), you must register as a taxpayer with SARS.

If you are not yet registered you would only be required to visit a SARS branch once to verify your identity, address and bank details. All additional tax registration can be performed from eFiling without having to visit a branch again. 
 
Kindly note that the 'IT77 registration form for Individuals' was discontinued and that the only way to register is to visit a SARS branch where the friendly staff will register you on our system.

Important: Make sure you have all the supporting documents (relevant material) needed. We won't be able to register you unless all the documents are received.
 
Step two: You must submit a return
If you are registered for income tax, you will be required to submit an annual income tax return to SARS. See the Tax Tables. The 2016 year of assessment (commonly referred to as a “tax year”) runs from 1 March 2015 to 29 February 2016. Every year, SARS announces its Tax Season, a period during which you are required to submit your annual income tax return. The tax season for 2016 opens on 1 July 2016. The income tax return which should be completed by individuals is known as the ITR12 form. For more information, see our ITR12 Comprehensive Guide, source codes and live stock values.
 
If you have forgotten your password, you can reset by calling our Contact Centre and following a simple procedure.
 

When should it be submitted?

  • 25 November 2016 -  At a SARS branch (provisional and non-provisional)
  • 25 November 2016 - eFiling (non-provisional)
  • 31 January 2017 - Provisional taxpayers via eFiling

If you don’t submit your income tax return on time, you may be liable for penalties.

How should it be submitted?

Online: The easiest and quickest way to file a tax return is online, by making use of SARS eFiling. You must, however, first register for eFiling on the SARS eFiling website. We have a page where we explain to you in detail how to register for eFiling. Once registered, you can complete the online form to create your return. Note that you will start by completing the first page of the form which contains several questions regarding the nature of your tax affairs (referred to as a return “wizard”). Completion of this part will automatically tailor the tax return to your specific tax requirements.
 
Once you have registered for eFiling, you can also file your return by making use of your cellular phone in linking with our Smartphone App. Alternately, you can download our eFiling App, after which you will be able to file your individual Income Tax Returns quickly and easily via your iPhone 4 or 4s, iPad, Android phone and Android tablet.
 
In a branch: The tax return can also be requested by visiting any SARS branch office. To find your nearest branch visit our branch locator. (Please note that there may be delays and queues during filing season, which is why SARS promotes the use of eFiling as a medium for return submission.)
 
Top Tip: When completing your return, you will require the following documentation in order to verify the existing, pre-populated information that appears in the return, as well as to complete any remaining portions:
  • IRP5: This is the employees’ tax certificate your employer issues to you. 
  • Certificates you received for local interest income earned. 
  • Any other documentation relating to income received or accrued, such as remuneration that has not been reported to SARS by your employer, or business or investment income, etc.
  • Details of medical expenses paid and medical scheme contributions made.
  • The relevant certificates reflecting your retirement annuity fund contributions made.
  • A logbook and other documents in support of business travel expenses (if the travel allowance is part of your remuneration or if you have the right of use of a company car taxable benefit).
  • Any other documentation relating to the allowable deductions you wish to claim.

To access this page in different languages click on the links below:

 

 

Last Updated: 15/07/2016 10:18 AM     print this page
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 Top FAQs

Is SITE refundable?
SITE is refundable in the following circumstances: 1. Where the taxpayer is entitled to pension ora retirement annuity or income protection premium deduction which has not been taken into account by the employer.

How is interest paid to a non-resident from a South African source taxed?
As from 1 March 2015 interest from a South African source, paid to a non-resident will be taxed at a final withholding tax rate of 15%.

Where can I find information to help me fill in my ITR12 correctly?
For information to fill in your ITR12 correctly: See Completing your ITR12 ITR12 – Comprehensive Guide is available here Visit the Tax Season webpage for all the latest information.

If the populated information is incorrect on my ITR12 return, how do I correct this?
For manual completion:- If the populated information is incorrect, you can change any populated information by :-Using a black pen to write over the information printed in pink

I am using Adobe PDF and I’m not able to Save or File my ITR12 on eFiling?
If you are unable to Save or File your ITR12 on eFiling when using Adobe PDF, and get an error message Follow these simple steps