A Comprehensive Guide to Tax Returns Submission in South Africa

Tax season – a term that often sends shivers down the spine. But, what if we told you MGT can make it easy for you? In this article, we share some valuable tips on how to make this process painless and smooth. However, Before we dive into our guide, first things first: Let’s answer some of the frequently asked questions. 

Who Needs to Submit a Tax Return?

Did you receive an SMS or email about an Auto Assessment from SARS? If so, give yourself a pat on the back. The bulk of the job is already done for you. But if that notification missed your inbox, that doesn’t mean you shouldn’t submit your Personal Income Tax Return (ITR12).

 Who is a Provisional Taxpayer?

A provisional taxpayer, as SARS elaborates, is someone who:

• Derives income outside of regular remuneration, allowances, or those who earn from an unregistered employer for employee tax.
• Represents any company.
• Has been flagged by the SARS Commissioner as a provisional taxpayer.

Despite these criteria, some entities are immune to provisional tax, such as approved Public Benefit Organisations (PBOs), Recreational clubs, specific body corporations, and a few more. If you are still not sure about this, reach out to MGT by emailing info@mgt-accounting.co.za, and one of our tax practitioners will explain it to you. 

Preparation: The Make-or-Break Phase

Think you are ready to file your tax returns? Let’s find out. First, you must ensure that you’re equipped with all the essential supporting documents. These documents not only validate your claims but also smooth out the tax returns process, minimizing the risk of any hiccups. Here’s a breakdown of what you’ll need:

• IRP5/IT3(a) Employees Tax Certificate: This is relevant if you’re an employee and have had tax deducted at the source.
• Income Certificates: These refer to the certificates you might’ve received for:

• Local interest income
• Foreign interest income
• Foreign dividend income

• Marital Status and its Impact:
  • Married in Community of Property: Here, the income and assets of both spouses are combined. Thus, you’d require the certificates received by both you and your spouse.
  • Married Out of Community of Property: In this case, only the certificates that you receive are needed as assets and income aren’t combined.
• Medical Expenditure-Related Documents:
  • Income Tax Certificate from Your Medical Scheme: If you’re a member of a medical scheme, you’d have received an income tax certificate for the period running from 1 March to 28 February. This certificate is paramount.
  • Proof of Out-of-Pocket Medical Expenses: Any qualifying medical expenses that you’ve personally footed and haven’t been reimbursed by your medical scheme should be documented. Keep receipts or any relevant records.
  • ITR-DD Confirmation: If you’re aiming to claim disability-related expenses, you’d need the completed ITR-DD Confirmation of Diagnosis of Disability form.

Prior to diving into the actual filing:

Document Checklist: Ensure you’re equipped with your IRP5/IT3(a) and other pivotal tax certificates. This encompasses information from medical aids, retirement annuity funds, and all essential documents defining your tax landscape.

Login Troubles? Navigate to the eFiling website. The intuitive design lets you promptly reset passwords or usernames, ensuring you’re not locked out for long.

Always Stay Ahead: Regularly use the online system to fetch your tax reference number and forward any required documents. More so, diligently confirm that your details, including banking, address, and contacts, are spot-on, either on eFiling or the SARS MobiApp.

It’s Submission Time!

Starting 7 July 2023, at 20:00, you can begin your tax return journey. eFiling and the SARS MobiApp are your go-to platforms for this. Fill out the forms, and make sure each field captures accurate data. Once satisfied, a simple click submits your details.

For those who don’t have the time to file. Are not sure how to navigate the online world is a maze, MGT Accounting is here for you. Just remember to book your spot with one of our tax practitioners. Email info@mgt-accounting.co.za. And do keep an eye on the ticking clock – 23 October 2023 is the final call.

Why Outsourcing to a Tax Practitioner is good for you?

Tax can be intricate, and even minor missteps can have significant ramifications. Here’s where a tax practitioner, like our team at MGT Accounting, comes in handy:

The Benefits of Outsourcing taxation to MGT

• Expertise at Your Fingertips: Tax laws and norms are constantly evolving. Our MGT practitioners are always updated, ensuring you’re always compliant.
• Time-saving: Instead of navigating the confusing tax maze, delegate it to experts. Your time is valuable; invest it in what you do best.
• Error Minimization: A seasoned practitioner can significantly reduce mistakes, potentially saving you from penalties or overpayments.
• Tailored Guidance: Every individual and business is unique, and so are their tax needs. MGT offers bespoke advice, ensuring maximum benefits and minimal liabilities.

• Holistic Solutions: From VAT to PAYE/SDL/UIF and Income Tax Exemptions for NPOs, we cover all tax terrains.
• Reliable Calculations & Submissions: With a proven track record, our submissions are accurate and timely.
• Expert Dispute Resolutions: Should you face any conflicts, our team is adept at mediating and resolving issues efficiently.

Need a Helping Hand? We are here for you.

Help-You-eFile Service: This isn’t just another online tool. It’s a virtual hand-holding experience. Interact real-time with a SARS agent who can guide you through your eFiling screen, much like a friend assisting over your shoulder.

• SARS YouTube Channel: The digital age is a blessing. With a treasure trove of tutorial videos on the SARS YouTube channel, visual insights are just a click away. 

Tax season should not be a rollercoaster of stress and panic. If ever you are not sure what to do, remember, that our MGT team is always here to assist. Drop us an email at info@mgt-accounting.co.za, and let’s make tax season painless.