What Individuals Need to Know About Their Personal Tax Returns – Provisional Tax Submission
/Individuals who are registered for provisional tax and haven’t submit their tax returns for the 2020 tax year (1 March 2019 – 29 Feb 2020) can now do so before the 29th of January 2021.
The same information is required as per the following blog.
If you would like us to assist you with your tax return, please let us know and we will get this done as soon as possible.
Provisional tax submission deadline – 28 February 2021 – 2nd provisional tax payment
ALL INDIVIDUALS AND COMPANIES REGISTERED FOR PROVISIONAL TAX SHOULD SUBMIT AN ESTIMATE OF THEIR YEARLY INCOME FOR 2021 BEFORE THE END OF FEBRUARY 2021.
If you made use of the COVID-19 relief, please remember that the second payment is calculated on 65% and the third payment of 35% can be made before the end of September 2021.
How you will know if you are a provisional taxpayer?
If you earn any other income except for salary income i.e. consulting fee income, high interest income, capital gains or rental income etc. you should submit a provisional tax return. All entities/companies are registered for provisional tax and provisional tax should be submitted.
The 2nd provisional tax is based on the same accounting period as the August 2020 provisional tax calculation. So if you had to pay provisional tax in August 2020, you will know if you are a provisional tax payer.
It will also appear on your last tax assessment indicating if you a registered provisional taxpayer.
What happens if I do not submit a provisional tax return?
When you submit your 2021 income tax return, and SARS assesses you with other income, but no provisional tax returns have been submitted, SARS will levy you with penalties and interest including non-submission penalties.
Since we need to calculate your provisional tax before we can submit it, we would really appreciate it if you could send it to us as early as possible. This will ensure:
Accurate calculation
No unnecessary penalties and interest
Enough time to finalize and submit your return and hopefully add some value
We will need the following:
1) An estimate of your total yearly earnings including:
Salary Income (Send us your payslip)
Interest Income (We can base this on 2016 if you have not made any additional investments or do not know of any changes)
Rental profit (Income less Expenses schedule)
Business profit if you trade as a sole proprietor or do consulting work in your personal name (Income less Expenses schedule)
Pension Income
Annuity Income
Retirement exit income (when you exit out of your retirement fund)
Any other income
2) Medical aid contributions and how many dependents you have on your medical aid. Please remember that this is only if you personally pay the medical aid.
3) Retirement annuity contributions for the year paid.
4) Any other allowable deductions that you have not considered above
If you have any questions, please do not hesitate to contact us via email (contact@anlofin.com or annja@anlofin.com) or phone us on 011 658 1324.
Medical aid tax credits and Disability/Impairment
We would like to remind taxpayers of the additional tax credits that you can obtain if you or any of your dependents are regarded for tax purposes as having a disability.
The information and support will be claimed and included in your tax return and should be included in your supporting documents that are sent to us please.
‘If you, your spouse or a dependant has a disability, you are entitled to claim certain qualifying medical expenses in the form of an additional medical expenses tax credit.’
‘A disability for tax purposes means a moderate to severe limitation of any person’s ability to function or perform daily activities. This can be as a result of a physical, sensory, communication, intellectual or mental impairment. The limitation (and the extent thereof) will only be regarded as a disability if it has lasted, or has a prognosis of lasting, more than a year and it has been diagnosed by a duly registered medical practitioner trained to diagnose the applicable disability or to express an opinion thereon.’
To be able to claim additional tax credits on your tax return, the following documentation is required
Confirmation of Diagnosis of Disability form or ITR-DD. This form needs to complete by a medical professional and will be valid for 10 years for a permanent disability and 1 year for a disability of a temporary nature.
Proof of qualifying disability expenditures – this is a detailed list of all expenditures that qualify.
It is important to note that even though the expense might be listed in the guide above, you will need to prove how the expense is necessary for the alleviation of the restriction on a person’s ability to perform functions of daily living.
If you have any questions, please do not hesitate to contact us.
