The revenue service launched its tax filing season on the 1st July. SARS also introduced several innovations to its digital channels to enhance the experience for taxpayers. A total of R3.5billion in refunds has been paid out since the opening of the 2019 tax filing.
Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. The process of deducting or withholding tax from remuneration as it is earned by an employee is commonly referred to as PAYE.
An employer who is registered or required to register with SARS for PAYE and/or Skills Development Levy (SDL) purposes, is also required to register with SARS for the payment of Unemployment Insurance Fund (UIF) contributions to SARS. You can register once for all different tax types using the client information system.
The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer Declaration (EMP201). The EMP201 is a payment declaration in which the employer declares the total payment together with the allocations for PAYE, SDL, UIF and/or Employment Tax Incentive (ETI), if applicable. A unique Payment Reference Number (PRN) will be pre-populated on the EMP201, and will be used to link the actual payment with the relevant EMP201 payment declaration.
It must be paid within seven days after the end of the month during which the amount was deducted. If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend.
Tax tips as taken from SARS online
1 – Not everyone has to file an income tax return. You do not need to submit a return if ALL of these apply to you: Your total salary for the year before tax is not more than R500 000; and
You have only one employer; You have no car allowance/ company car/ travel allowance or other income (e.g. interest or rental income); You are not claiming tax-related deductions/rebates (e.g. medical expenses; travel and retirement annuity contributions, other than pension contributions made by your employer)
You do have to submit a return if you worked for more than one employer or retired or resigned from employment, or your circumstances have changed in a substantial way, including letting out rental property. You also have to submit a return if you wish to claim tax-deductible expenses such as medical scheme contributions and medical expenses not paid by a medical scheme, and retirement annuity fund contributions, etc.
2 – The improved SARS MobiApp for smart phones is a smart choice. So up your game and download the MobiApp from the Google Play Store or App Store. With the SARS MobiApp you can use your smart phone to register for eFiling, reset your username and password, file your return, submit supporting documents, make a payment to SARS, set up a Call Back from the SARS Contact Centre and use other services.
3- The enhanced SARS eFiling site allows visually impaired taxpayers to file a return. Just download screen reader software. A taxpayer can claim expenses incurred and paid for in relation to a disability suffered by the qualifying taxpayer, his/her spouse, child or dependent. To claim deductions, the disability needs to be confirmed by a registered medical practitioner who has to complete an ITR-DD form. You do not need to submit the ITR-DD with your tax return. They will let you know if they need it. Physical impairment is distinguished from disability by the fact that the severity of its effects can be overcome by a device or be corrected through therapy. People who have physical impairments may claim expenses related to their impairment only when such expenses exceed 7.5% of their taxable income.
4 – Expert help is available online from a friendly SARS agent in real-time as you file your return. Click the Help-You-eFile icon once you have logged into your SARS eFiling profile. Select Call Me and a SARS agent will talk you through every step of the way while you complete your income tax return online. The SARS Contact Centre hours are 08:00 to 17:00 on Monday, Tuesday, Thursday and Friday and 09:00 to 17:00 on Wednesday. For more info, see the Help-You-eFile webpage.