SARS Issues Revised Individual Income Tax Guide
The South African Revenue Service has issued an updated version of its Guide on Income Tax and the Individual to inform South African residents of their income tax obligations.
SARS emphasizes that the Guide does not attempt to cover every tax matter, but does attempt to provide clarity on the majority of issues that are likely to arise in practice.
It specifies that any individual who becomes liable for any income tax or who must submit an income tax return should, within 21 business days of becoming liable, apply to SARS for registration.
Individuals must submit an income tax return during the 2015 year of assessment if they received income from employment with more than one employer that exceeded the tax threshold of ZAR70,700 (USD5,300) for individuals under 65 years of age; had a capital gain or capital loss exceeding ZAR30,000; was given a taxable allowance or advance; or received interest in excess of the exemption thresholds (ZAR23,800 if the taxpayer was below the age of 65).
In addition, a return has to be filed by a South African resident who held or owned any funds in foreign currency or assets outside South Africa, if their total value exceeded ZAR200,000 at any time during the year of assessment; had income or capital gains from foreign currency or assets outside South Africa; or held a participation right in a controlled foreign company.
On the other hand, an individual whose gross income consisted solely of employee remuneration is not required to furnish a return if he or she did not receive any taxable allowance or advance; if the remuneration was from a single source and did not exceed ZAR350,000 for the year of assessment; and if employees’ tax has been correctly withheld by the employer.
