In terms of section 25 of the Tax Administration Act, 2011, Commissioner for SARS Tom Moyane promulgated Public Notice 547, which sets out the requirements for which persons how to submit income tax returns for 2017 year of assessment. In terms of section 25 of the Tax Administration Act, read with section 66(1) of the Income Tax Act, persons specified in terms of paragraph 2 of the Public Notice 547 are required to submit an income tax return within the prescribed period in paragraph 4 of the said Public Notice.
As the tax season of 2017 opens in just under two weeks, we shall examine the various categories of persons who are compelled by the Public Notice to submit income tax returns for 2017, as well as other important matters referring to the 2017 filing season.
Who must Submit Income Tax Returns for 2017 Year of Assessment
Both resident and non-resident companies, trusts or other juristic persons, who carried on a trade through a permanent establishment in the Republic, derived income from a source in the Republic, derived any capital gain or capital loss from the disposal of an asset to which the Eighth Schedule to the Income Tax Act applies, every company incorporated, established or formed in the Republic, but which is not a resident as a result of the application of any agreement entered into with the Government of any other country for the avoidance of double taxation, are liable to submit income tax returns for 2017 year of assessment..
All resident and non-resident natural persons, who:
Carried on any trade (other than solely in his or her capacity as an employee);
- Was paid or granted an allowance or advance as described in section 8(1)(a)(i) of the Income Tax Act (other than an amount reimbursed or advanced as described in section 8(1)(a)(ii)) and whose gross income exceeded the thresholds set out in paragraph (4) below;
- Was granted a taxable benefit described in paragraph 7 of the Seventh Schedule to the Income Tax Act and whose gross income exceeded the thresholds set out in paragraph (4) below;
- Are residents and had capital gains or capital losses exceeding R40 000, and for non-residents who had capital gains or capital losses from the disposal of an asset to which the Eighth Schedule to the Income Tax Act applies;
- Is a resident who held any funds in foreign currency or owned any assets outside the Republic, if the total value of those funds and assets exceeded R225 000 at any stage during the 2017 year of assessment;
- Is a resident who had any income or capital gains from funds in foreign currency or assets outside the Republic;
- Is issued an income tax return form or who is requested by the Commissioner in writing to furnish a return, irrespective of the amount of income of that person;
- Is an estate of a deceased person that had gross income;
- Is a non-resident whose gross income included interest from a source in the Republic and is not subject to the exemptions contained in Section 10 (1) (h) of the Income Tax Act
- Is a representative taxpayer of any persons are all liable to submit and file income tax returns for 2017 year of assessment.
Who is Exempt from Submitting Income Tax Returns
Natural persons and estates of deceased persons, if the gross income of that person consisted solely of gross income, such as remuneration paid or payable from one employer, which does not exceed R350 000 and employees’ tax has been deducted or withheld in terms of the deduction tables prescribed by the Commissioner, dividends received by, or accrued to natural persons who were non-residents throughout 2017 year of assessment; and amounts received or accrued from a tax-free investments, do not need to file income tax returns. In addition to this requirement, interest (other than interest from a tax-free investment) from a source in the Republic not exceeding:
- R 23 800 for natural persons below the age of 65 years;
- R 34 500 for natural persons aged 65 years, or older;
- R 23 800 for the estates of deceased persons is not subject to income tax.
Natural persons, who have received income not exceeding R 75 000 per year for persons under the age of 65 years; R 116 150 per year for persons older than 65 years, but under the age of 75 years and R 129 850 per year for persons older than 75 years will not be liable to submit and file income tax returns for 2017 year of assessment.
Deadlines for Income Tax Returns Submissions
The periods within which income tax returns must be furnished are for companies within 12 months after the end of the financial year end and for all other persons, which includes natural persons and trusts:
- On, or before 22 September 2017 for all manually submitted income tax returns;
- On, or before 24 November 2017 for all income tax returns submitted by using the SARS eFiling platform or electronically through the assistance of a SARS official at an office of SARS;
- On, or before 31 January 2018 if the return relates to a provisional taxpayer and is submitted by using the SARS eFiling platform.
Forms of Income Tax Returns
The forms prescribed by the Commissioner for the submission of income tax returns are obtainable on request via the internet at www.sarsefiling.co.za or from any office of SARS, other than an office which deals solely with matters relating to customs and excise.
Good luck with the submissions of your income tax returns! We are here to assist you if you need any advice and guidance for the completion and submission of your income tax return, or if you are aggrieved by the assessment received from SARS.
Herewith a link for ease of reference: