The process of personal tax preparation can be simple and stress-free, as long as you are organised as a taxpayer.
Paying taxes is essential for contributing towards the smooth running of any economy. Tax contributions are used by governments to provide various services to the country’s citizens.
In South Africa, if you are working, you are liable to pay income tax.. For individuals who are employed, their employer is liable for ensuring that tax is deducted from their salary, in the form of Pay-A-You-Earn (PAYE).
In South Africa, you pay more income tax the more you earn.
There are numerous tax brackets that apply, including: 18%; 26%; 31%; 36%; 39%; 41% and 45%.
Important steps in personal tax preparation:
You need to register as a taxpayer with the South African Revenue Services (SARS). To do this, visit your nearest SARS branch with your ID and proof of residence.
Make sure that you gather all documents required for the process. This includes all slips and other proof of deductions.
Keep track of the tax filing deadline so that you don’t miss it.
South Africans can file their taxes electronically through the eFiling system. Not only is this convenient because you don’t’ have to spend hours waiting in lengthy queues, but it also means that you may be paid by SARS much sooner.
Keep in mind that it’s important for you to file taxes 100% correctly, otherwise you may become liable for penalties.
If you need help during the personal tax preparation process, don’t hesitate to seek the services of a tax professional. They can help you find ways of legally paying less tax while ensuring that you make all of your required contributions.