3rd January 2008
Sars (South African Revenue Service) has offered information for you detailing 10 steps to simpler filing.
According to Sars, these steps are:
1. Make sure that you have all your supporting documentation to help you complete your return such as your IRP5, financial statements, medical aid information, retirement annuity certificates and travel expenses if you get a travel allowance. However, remember you must not submit these documents with your return.
2. On the basis of your different types of income and deductions, determine which of the two new simplified and shortened income tax returns for individuals you need to complete: the IT12S or the IT12C. Here is a quick quide:
The IT12S (standard return) is completed by taxpayers who:
- Earn a salary (excluding foreign income) with no allowances providing you did not receive more than three IRP5/IT3 certificates.
- Earn a salary with allowances, e.g. travelling, and local subsistence allowances.
- Have only local investment (interest) income (not foreign).
- Earn SITE-only income and want to claim medical expenses, retirement annuity contributions and/or income protection contributions that were not taken into account by your employer.
- Previously completed an IT12S, IT12SS or IT12SE return.
The IT12C (comprehensive return) is completed by: - Those who earned commission as well as business/farming/professional income.
- Labour brokers and independent contractors.
- Directors of companies and members of CC’s.
- Taxpayers who have foreign investment income, e.g. foreign interest and foreign dividends.
- Taxpayers with rental income.
- Taxpayers with income that is subject to Capital Gains Tax.
- Those in receipt of a foreign subsistence allowance.
*Taxpayers who previously completed an IT12SB or IT12BU return.
3. Obtain a copy of the relevant income tax return. You can get one in the following ways:
- By mail
- From a Sars office
- From the internet
4. Now you are ready to complete the return. Make sure you fill in all the applicable fields on your tax return in full. Check that you have filled in the following mandatory fields: personal particulars, banking details, income received and tax paid.
If you received no income or paid no tax in the tax year, then enter a zero in these fields. You can also check out the guidelines on the Sars website. Please note that if you don’t complete the return in full and sign it, your return will be mailed back to you for proper completion and this could result in you being late with submission.
5. If you need help completing your return, visit your nearest Sars branch for assistance or look out for Sars visits to shopping malls/centres, libraries, workplaces and community centres during September and October.
Remembers to bring all your supporting documents with you as you can’t complete your return without them.
6. Double check your banking details and make sure they are correct. To combat fraud, Sars will no longer issue cheques and will only deposit refunds into your bank account.
7. Sign your return. Without your signature, your return is invalid and cannot be accepted. That means Sars will send it back to you for signing and it could then be late and result in penalties.
8. Make a copy of your return for your own records.
9. Now you are ready to submit your return. Remember not to attach any supporting documents! You submit your return by:
- Posting it to Sars using the self-addressed envelope supplied with your return.
- Dropping it off at any Sars branch.
- Dropping it off at any Post Office countrywide.
- Handing it to Sars staff during their visits to shopping centres, places of work, libraries, community centres etc.
- If you use eFiling, simply send it electronically.
10. Pack away your supporting documents and the copy of your return in a safe place for at least five years in case Sars queries your return.
This article was originally published on www.taxtalk.co.za.