South African taxpayers are able to submit their 2013 income tax returns from  July 2013. Taxpayers need to make sure that they update their ID numbers and addresses on the return, as failure to do so may result in the South African Revenue Services (“SARS”) punishing them with administrative penalties.

Non-provisional taxpayers have until 22 November 2103 to file their 2013 income tax return electronically and provisional taxpayers have until 31 January 2014.

Not sure whether you must submit an Income Tax Return (ITR12)?

Do any of the following apply to you for the year of assessment 1 March 2012 to 28 February 2013?

• Did you conduct any trade in South Africa? [The term “trade” is summarised as, including every profession, trade, business, calling, occupation or venture, including the letting of any property but excluding any employment income.]
• Did you receive an allowance such as a travel, subsistence or Office Bearer Allowance? Check Section 8(1)(a) of the Income Tax Act if unsure.
• Do you hold any funds or assets outside South Africa that have a value of more than R100 000?
• Did you have a local Capital Gain/Loss exceeding R30 000?
• Did you receive any income or Capital Gain in a foreign currency?
• Do you hold any rights in a Controlled Foreign Company?
• Did you receive an Income Tax Return or were you requested to submit an Income Tax Return for the year in question?

If the answer to any of the above is positive then you will need to file a South African income tax return.

What to do if you receive income from two sources?

Taxpayers who receive income from more than one source of employment or pension often mistakenly believe that the employees’ tax (PAYE) deducted by the respective employers or pension funds is enough to cover their ultimate tax liability on assessment.

It is important to understand that the South African tax system is based on the principle of adding together all sources of income of a taxpayer into a single sum and applying a progressive tax rate table in determining the tax liability of the taxpayer on assessment. This means that as more income is earned, the higher the marginal tax rate is and more tax is paid on assessment.

By withholding PAYE, the employer or pension fund is assisting a taxpayer to pre-pay his or her tax liability on assessment. When only one employer or pension fund is involved, the total PAYE deducted monthly should be equal to the tax liability on assessment, and typically should result in no extra tax due on assessment. However, where more than one employer or pension fund is involved, each of them withholds PAYE on only the salary or pension they respectively pay which may result in an under-deduction and therefore an additional amount of tax to be paid on assessment.

You are more than welcome to contact the Tax Consultant, Fanus Jonck (tax@jonck.net) with any tax queries.