eFiling, your tax and savings

Here is a short Q&A with our local tax expert Ben Marais:

  1. What are the most significant changes we can expect this tax season?
    The whole look and feel of the eFiling tax return changed, but the content and information required stays the same. 
     
  2. When does tax season open and when does it close? 
    Officially the tax filing season opens on the 1st of July 2019 for taxpayers using eFiling and closes 4 December 2019
    For taxpayers that want to file a manual return at a SARS branch, the filing season opens on the 1st of August 2019 and closes on the 31st of October 2019
    Provisional taxpayers have until the 31st of January 2020 to file via eFiling. 
     
  3. Who needs to file their tax return? 
    All provisional taxpayers are required to submit a tax return. 
    If you earn less than R500 000 annually and have only one IRP5 and don’t have any other deductions you want to claim, then you are not required to submit your tax return. 
    This does not mean you don’t (or did not) pay tax. It only means that the amount of tax deducted monthly will be correct, and should you choose to submit a return the result will be that there is no refund or amount payable. 
     
  4. All my benefits (medical aid and retirement) are part of my company benefits, do I still need to file tax returns? 
    If you earn less than R500 000 annually and have only one IRP5 and don’t have any other deductions you want to claim, then you are not required to submit your tax return. 
     
  5. Is there anything that I can claim tax returns for apart from my medical aid and RA? 
    If you are a commission earner, and more than half your income consists of commission, then you can claim expenses that you incurred linked to the production of the commission. 
    Normally this kind of expenses includes, amongst others, travelling cost, telephone and internet and home office expenses (independent contractors can do the same).

You can contact Ben Marais on ben@bwmconsult.com or 082 771 4619.

July is savings month

Below is the graph showing SA’s saving ratio vs. our peers. As you can see, we are, as a country, not saving at all.

Another concern is the vehicles being used to save in South Africa, they generally do not offer any growth or interest on the money.

Household savings rate (average over 12 months)