IRP5 Certificates. For salary, pension or annuities, or where there has been a withdrawal from a pension or provident funds where tax has been deducted. (Pay-slips - it has always been advisable to carefully retain these. In these difficult economic times' some employers have fallen by the wayside where they may have not been able to comply with the legal requirement to pay to SARS all PAYE that has been deducted from employees' salaries. This is where pay-slips become vital evidence. SARS will generally allow a credit for PAYE deductions that can be proved. In other cases SARS are likely to assess you on an income level based on your recent tax history AND not allow a notional credit for PAYE deductions). Capital Gains. Full declaration of all such earnings is required even upon the disposal of your primary residence. All Unit Trusts supply tax certificates and such investors must ensure they obtain them - if not received in the mail; can usually be downloaded from websites - or - contact your bank or financials adviser. | IT3(a) Certifiicates. For other income where no tax has been deducted at source - pensions and annuities and pension/ provident withdrawals. (IRP5s and IT3s would normally have been captured by SARS and would appear on your Efiling tax return on-screen - BUT - SARS often requires us to upload onto the system and you should therefore obtain a copy from the employer or financial institution) Travel Allowances. More information here. |
Medical. Medical Aid Certificates usually arrive in the mail or can easily be downloaded from the Societies' websites. These are MOST IMPORTANT - you have been allowed up front tax relief via your employers' payrolls and it is vital that the same circumstances are repeated on your tax return in order to agree with what you have been allowed. Medical Costs that were not submitted to your medical aid, need to be listed for the tax year 1.3.09 to 28.2.10 in order of DATE, PRACTICE NAME and AMOUNT. Fax or email your list to us and retain the medical bills for five years. Your list to be for registered medical practices and scripts only. Off-the-shelf remedies (Panado; cough syrup; flu remedies; vitamin supplements; etc. do NOT qualify). Your list should inclue the tear-off portion of a script you receive at a pharmacy (the levy portion) as this amount has not been captured by the medical aid. Claims for disabilities - special rules apply here and we prefer to deal with these clients where circumstances apply. Specific SARS Press releases of late indicate that such claims will receive more sympathetic consideration , discuss with us for further advice. | Retirement Annuity Contributions. In most cases your whole contribution will rank for tax relief. You have to obtain tax certificates from the institutions for it to be claimed on your return. Income Protection Premiums. Invariably rank for full tax relief. You have to obtain tax certificates from the institutions. Investment Income. Interest and Dividends - ensure you obtain tax certificates from the banks and financial institutions. Dividends are currently tax-free while interest is taxable above certain thresholds - R12,000 for under 65s and R30,000 for over 65s. WARNING - SARS is carrrying out an exercise looking for under and un-declared interest earnings. Those that have overlooked or chose not to declare such earnings. Those that have overlooked or chose not to declare such earnings have been re-assessed for the tax years 2007 to 2009. The re-assessments have been raised without penalty; though SARS are likely in subsequent tax years, to impose the stipulates penalty of 200% of the tax evaded; highly likely in the case of repeat offenders. Even if your interest earnings are below the threshold; please ensure such earnings are fully declared. The same with Dividends - they are non-taxable but full declaration is required and advisable. SARS is supplied with the details of all investment income and it is incumbent on the taxpayer to ensure full declaration. |
Tax Season 2010
